International contracts - Management International

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International Selling-Buying Contract: elements and clauses The sales contract is an agreement between the seller and the buyer, based on an offer which must be accepted.The offer is a proposal for a contract, adressed normally to one or more specific persons. Under a sales contract the seller must deliver the goods and hand over any documents. As for the buyer, he must pay the price of the goods and take delivery of them as stipulated in the contract. Elements: parties, object, price, quality, quantity, and time of delivery. 1. Direct-Selling Contract; Elements: – logical and juridical identification of the contracted parties ( preamble); – identification of an object of the contract; – stipulation of conditions regarding the object of the contract (quantity, pricing, packaging, marking, delivery terms and conditions, quality guarantees, payment methods and terms, reception and check-up, claims and penalties, settlement of disputes, giving-in conditions and final provisions). A traditional export contract therefore includes: parties involved, description of the goods, price, a point or destination at which the ownership of goods passes from the seller to the buyer (or INCOTERMS), responsibilities for carriage and insurance; the method by which goods will be dispatched; the documents required by the buyer; bonds and guarantees; the method, period and currency of payment; the seller’s bank through which payment is to be conducted; the name of the arbiter should there be a dispute over a contract; details of which party is to be responsible for bank charges and so forth.