FOR MANDATE, AGENTS, CONSULTANTS, FACILITATOR’S, BROKER, BUYER SIDE OR SELLER SIDE
1) Non Circumvention Non Disclosure Agreement (NCNDA):
NCNDA as it stands is a document which protects all parties’ financial interest. (which is the commission fee). A Non Circumvention Non Disclosure Agreement is usually signed by all involved parties before the SPA is signed could be embedded in the SPA. This protects all parties from being circumvented by any greedy participant in any given deal. It is always advisable to have this document signed by all the players in any particular deal. It is very important to have this document embedded in a contract as an integral part rather than as an addendum to a contract.
2) Master Fee Payment Agreement (MFPA):
This is a document usually embedded in the contract, signed by the buyer and the seller, guaranteeing the payment of commission to all the parties involved in the deal. Since the buyer pays all the parties from the discounted price, he is the party required to sign and seal the document. It is always a good practice to have this document in the contract as an integral part or as an addendum.
GENERAL TERMS:
Table Talk Meeting (TTM):
A table talk meeting “TTM” is a meeting held between the buyer and the seller or their mandates to negotiate and come to a final mutual agreement to complete and sign a contract. TTM could also be held after a contract has been signed. At the TTM, buyers and sellers discuss and agree on areas in the contract that has plagued its execution. It is also a forum for the players to meet and know themselves.
Any Safe World Port (ASWP):
Any Safe World Port: This stands for Any Safe World Port. This is usually associated with a CIF transaction where the seller and the buyer mutually agreed to deliver the cargo at a safe place (port).
Ready Willing and Able (RWA):
RWA means Ready, Willing, and Able to transact an Oil Deal. The seller and buyer must both express their readiness, willingness and ability to hatch and conclude a deal as specified in the (SPA Procedure) contract.
Due Diligence (DD):
Due Diligence: Due Diligence is the process by which both the buyer and the seller conduct a fair investigation on each other’s ability to deliver and perform. This may include reviewing each other’s financial background and business records, including business ethics.
