Unit7ASalesConfirmation.ppt

Unit 7A Sales Confirmation Text A The Import and Export Contract A contract is a formal written agreement, which sets forth rights and obligations of the parties concerned. Once entered into, a contract is binding and enforceable by law. Any party who fails to fulfill his obligations must make compensation for the other party’s losses. In import and export business, if the seller makes an offer and the buyer accepts that offer, it means a deal. A written contract is usually made. An import and export contract contains the following terms and conditions: 1.????? The name of the commodity and specifications, the quantity and packing; 2.????? Date of shipment and destination port: The goods must be shipped before or on the stipulated date of shipment and must arrive at the stipulated destination port; 3.The quoting of prices: The way to quote a price in foreign trade is different from what we do domestically. In quoting prices in foreign trade, trade terms are added to the unit price. For instance, in our quoted price as “corns at USD 280 per metric ton FOB Shanghai”, FOB is one of the trade terms; 4.Terms of payment: That refers to mode of payment. In international trade the letter of credit is the main mode of payment. It is a bank instrument which , on one hand, assures the seller that he will be paid and, on the other, assures the buyer that he will not pay until the goods have been shipped. So both the seller and the buyer feel it safe and convenient to use L/C; 5. Insurance: In international trade, insurance is essential. It should be indicated in the contract whether the seller or the buyer covers insurance on the goods; 6.Claim: If there is any quality, quantity or weight discrepancy of the goods, the buyer may raise a claim against the seller within a stipulated period of time; 7. Arbitration: In case no settlement can be reached through negotiation, dispute may be submitted to arbitration; 8.??? Shipping documents required; … There ar