introductiontointernationaltrade.ppt

* 2.2 The negotiation of a sales contract Definition: A trade contract is an agreement which is concluded between seller and buyer based on an accepted offer and which sets forth biding obligations of the parties concerned. Governing rule: the United Nations Convention on Contracts for International Sale of Goods 1980 (CISG 1980) A contract can be formal, informal, simple or complicated, written or oral. * 2.2 The negotiation of a sales contract A sales contract normally includes: (see Specimen 1.1-1.2) full name, address and other necessary information of the seller and the buyer description of the commodity involved, including name, quality, quantity and packaging etc. all terms agreed upon, including price, delivery, transportation, insurance, payment, inspection, claims, force majeure, arbitration, etc. date on and place at which the contract is signed and the signature of the buyer and the seller * 2.2 The negotiation of a sales contract Contract vs. confirmation A contract is more formal and contains more details than a confirmation But equally binding on the parties concerned Importance of a written contract It is the only document between Seller and Buyer that evidences their respective rights and obligations. It serves as the basis for the performance of the contract and also the settlement of disputes. * 2.3 The performance of the contract Export procedure (business under CIF on L/C) Examining L/C Urging and expediting the opening of L/C Examining L/C with reference to the sales contract Getting goods ready preparing goods according to the name, quality, quantity, packing and making required in the contract Applying for mandatory inspection For goods required inspection by the governments or in the contract Documents Submitted: commercial invoice, copy of sales contract, L/C, etc. * Export procedure Receiving importer’s inspection before shipment Booking shipping space after receiving L/C and getting goods ready Clearing goods for export Afte