SCRAP SPECIFICATIONS CIRCULAR 2017
Terms of payment should be explicit. Ex: “Net 30 days after
shipment”; “Net 15 days after mill receipt.” Avoid phrases
such as “usual;” “Net 30;” “Net Cash.” Documents required
to effect paymet to be clearly stated. Ex: “Bill of Lading”;”
Invoice”; “Weight Certificate.” State how payment shall be
made. If there is discussion of compensation for delayed
payments, it should be included in the contract. If Letter of
Credit is called for as a means of payment, it is advisable
that the terms to be included in the Letter of Credit also
be stated in the contract. When applicable, contract should
state whether Buyer or Seller is responsible for payment of
taxes, duties, or any other levies to which a shipment could
be subjected. Contract should state whether the Seller’s or
Buyer’s weights shall govern the basis of settlement.
The contract may state whether the Buyer and/or the Seller
has the right to assign the contract. If it does, it should
emphasize that the obligation arising under the contract
shall be equally binding on his assignee.
The Seller should specify how notice to be given under the
contract should be received—i.e. by hand, by telegram, by
certified or registered mail. One should also specify when
notice is deemed to be received by the party to whom it is
XII. Disclaimer of Warranties:
Depending on the type of transaction, or the metal involved,
the Seller may want to limit his liability by disclaiming any
warranties of merchantability or of fitness for a particular
The contract should contain a provision setting forth the
events which would result in a default of the contract. This
provision might also contain a clause stipulating damages
and/or setting forth available remedies (i.e. specific perfor-
mance) in the event a default does, in fact, occur.
XIV. Force Majeure:
This item is related to the item of default, as indicated
in paragraph XIII. Seller or Buyer may enumerate, either
generally or specifically, what events (i.e. strikes, fires,
accidents) constitute circumstances beyond its control and
thereby absolve him/her of any liability for damages or
The Seller or Buyer should state in the contract that his/
her failure to insist upon strict performance in any given
instance shall not be construed as a waiver or relinquish-
ment for the future of any of the terms, covenants and con-
ditions contained therein.
The Seller may specify that any claims involved in a metals
transaction for contaminated materials, weight shortage, or
for any other cause is waived by the Buyer unless brought to
the Seller’s attention within a certain number of days after
XVII. Arbitration and Applicable Law:
The contract should set forth which state’s or country’s law
will apply in the event of a legal dispute under the contract.
It should also provide for arbitration procedure. (If ISRI Arbi-
tration is desired, the contract should so stipulate.)
The contract should stipulate on whom it is binding. For
instance, the Seller or Buyer may want to specify that the
contract inures to the benefit of the parties, their legal rep-
resentatives, successors and assignees.
XIX. Entire Agreement:
This provision is especially important in the area of metals
transactions, which frequently involve extensive preliminary
negotiations. A clause may be inserted into the contract
stating that the contract constitutes the parties’ entire
agreement and supersedes all prior agreements and under-
standings with respect to the subject matter of the contract.
A clause may be included in the contract stating that the
contract’s requirements can only be modified by a written
instrument signed by the parties or their respective agents.
This insures that the parties’ informal discussions will not
later be construed as affecting an alteration of the contract.
Part II: Packing, Weighing, Shipping
It is recommended that strict adherence to contract terms
will minimize many of the potential problems in this area. If
there is a question about any item, one should communicate
with his/her Buyer/Seller and clarify the situation prior to
shipping. Listed below are some specific guidelines to be
used in avoiding the most frequently reported problems.
Packing (All Shipments)
a. Pack in the manner and form agreed. Example: In sound
bales, briquettes, boxes, pallets, drums, loose, etc.
b. Be sure that Buyer agrees with your definition of words
and phrases, i.e. Bale, Briquette, Coil, etc. as well as
allowed dimensions and weights of such.
c. Material and packages should be securely tied or sup-
ported so that packages will hold in transit and normal
a. Advise Seller of any specific prohibitions, i.e. type or
method of packing, size or weight of pieces, units or
b. Be sure that Seller agrees with your definition of words
and phrases, i.e. Bale, Briquette, Coil, etc., as well as
allowed dimensions and weights of such.
Weighing, Shipping and Receiving
a. Each package should be individually weighed and the
entire truckload should be checkweighted for compari-
son. Reconcile or explain any differences. If truck is
Guidelines for Metals Transactions