International Sales Agreement Contract
In this section of the Foreign Trade Agreement, it is necessary to define the means of resolving disputes. It can be both a court and an arbitration. If you choose to arbitrate, I recommend that you use standard arbitration clauses that you can find on the websites of arbitration organizations. If another party disagrees with the proposed applicable law, you can reach a compromise by applying English law as the most effective law in international trade. The sample forms help you in drafting contracts. However, it is necessary to choose the right form and add the necessary elements specific to your transaction. 3.Carefully consider whether you will be able to perform the contract – sanctions in case of non-performance or incorrect performance of the contract; The content of the contract corresponds to the necessary conditions agreed by the parties. The basic elements of an international commercial contract are: The model international sales contract is used for the purchase and sale of corporate products in international markets. Choose the most appropriate rules for your foreign trade contract and correct it. The number of standard contractual clauses is increasing every year. For example, only the Grain and Feed Trade Association (GAFTA) offers about 80 forms of contracts. You can get these contracts for free on the official GAFTA website. – Determination of the rights and obligations of the seller and the buyer in international transactions; You can use the forms of contract mentioned above or certain elements in the drafting of the contract.
Nevertheless, it is necessary to choose the right form, make the necessary changes and add specific elements for your transaction. Click below to watch the webinar now – and move towards clarity and confidence in creating international sales contracts. Our free webinar, Creating an International Sales Contract, is a good starting point for everyone in your company involved in international trade, from purchasing agents to sales representatives, from logistics staff to your company`s legal team. You will learn: Applicable law is an important element of an international commercial contract. It is obvious that each party wants to have the law of the country in which the company is located as the applicable law. By default, the right to choose the law belongs to the party drafting the contract, usually it is the seller. In real life, most exporters and importers don`t sit down together to sign a single formal document called a contract. Contracts are usually created through a process that may include an offer, acceptance, rejection, and counter-offer. Not all of these components occur in all sales. A written contract requires the buyer and seller to think in advance about the details of the sale. Before a contract is written, it is much easier for both parties to negotiate; Once a contract is created, it becomes much more difficult.
A written contract also reminds both parties of the terms of the sale. However, this misunderstanding can lead to significant errors in the contract. Finally, the party suffers damages as a result of these errors. If you are not convinced of your abilities, entrust the design of the contract to a professional. The names of the parties appear in the preamble and in the last part of the contract. We recommend that you provide detailed information about your counterparty, including the full name of the company, identification number, registration address, name and position of the signatory. Drafting an international treaty is a difficult job that requires knowledge of international trade. If the job is done well, the risks in your transaction are minimal.
The practice has many bad examples, when the process of signing a contract took place with an unauthorized representative and, as a result, the company refused certain actions performed by these representatives. The object of a foreign trade contract are actions that must be carried out by the supplier and the buyer. Article – Products to be delivered. An international sales contract is an agreement between a buyer and a seller that identifies the parties to the transaction, the goods or services sold, the conditions of sale and the price to be paid. International sales are covered by the United Nations Convention on Contracts for the International Sale of Goods (CISG). The quality of the goods is an essential issue for the buyer. Protect yourself by describing in the international sales contract the characteristics related to the quality of the goods. This is particularly important for agricultural products. For a long time, Incoterms have served as guidelines and rules for exporters, importers, lawyers and other actors in international trade. Breaches of contract result in significant damage and reputational risks. Reputation is important in international trade. – the procedure for terminating the foreign trade contract; For example, if the object of the contract is wheat, it is necessary to indicate the variety of wheat, the year of harvest, the permissible percentage of impurities, the percentage of damaged grains, moisture, the permissible content of harmful impurities, pesticides, etc.