Sales Contract

Stages of International Trade

Settlement of Commercial Terms 2. Drafting of a Contract 3. Formalities under the Contract a. procure export/import licence b.establish supply base c.to open import LC d. charter a vessel or booked required space in vessel 4. Performance of the Contract a. avoid variation/deviation from the delivery schedule b. quality and other requirements.
1.

Stages of International Trade

5. Settlement of Disputes a. direct negotiations b. arbitrations (if agreeable ) Private/Instituition c. Concilation d. legal recourse 6. Execution of an award

Why necessary:
a.

To know rights/obligations

b.

To avoid ambiguity

Standardisation of Export Sales Contract

Authorities involved: 1. ICC 2. UNICITRAL (UN Commission on International Trade Law) 3. ECE (Economic Commission for Europe) 4. CMEA (Council for Mutual Economic Aid)

RULES & REGULATIONS

1. 2. 3. 4.

UCPDC URC INCOTERMS Guides for drawing up Commercial Agency Agreement Uniform rules for contract guarantees

5.

6.

ICC Arbitration and ICC rules for Conciliation and Arbitration Guides for drawing up commercial agency agreements

7.

ELEMENTS OF EXPORT CONTRACT

A)

i.

Specific Terms and Conditions Product, Standard and Specification

ii.

Quantity and Value

Quality

iii.

iv) Pre-shipment Inspection

Quality Control and Pre-shipment Rules

By Buyer or his agent

Specify: Nature Manner Aspect Agency for inspection who will pay the cost.

v.

Period of Delivery and Shipment -Place of dispatch/delivery -Date of delivery -Period will start when -Penalty in case of late delivery

vi.

Packing, Labeling & Marketing Terms of Payment and other responsibilities/ Transfer of Risk. Discount and Commission

vii.

viii.

ix.

x. xi.

Insurance a) Extent b) Incidents to be covered Documentary Requirements Guarantee a) Type b) Period

xii. Payment Terms a) DP/DA b) LC/ Non LC c) Advance Payment d) extent of advance payment

B. GENERAL TERMS & CONDITION

Force Majeure Clause a) Circumstances b) Relief available 2. Third Party Claims 3. Settlement of disputes and application law: a) Which law b) Arbitration i) No. of Arbitrations ii) Who will appoint iii) Which place
1.

4) REMEDIES
In case of default: a) Right of buyer to procure the goods at the expense of the seller. b) Terminate the right of the seller to proceed with the contract c) Reimburse the buyer

5) ASSIGNMENT
Transfer

of right and obligations under the contract to a third party put that without consent it cannot

Must

be

6) ACCEPTANCE
When the goods will be deemed as accepted: After reasonable opportunity to examine the goods
Will

be deemed as accepted if retained without rejecting beyond a reasonable time

FACTORS EFFECTING CONDITIONS

a)

Type of products being traded Bargaining positions in the market Type of trading operations- long term/ short term.

b)

c)