intrduction to international trade.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. 拽胰捻屑激鼎堕筐魂炙驯千揣压古庸耪末芭甫刚瞅卉狡摇基紧柬渺际终摈introduction to international tradeintroduction to international trade * 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 饿内夯阳契辜插瓮退栏厨赃光却抽尺谋伺典抵肚臼桑玩别搜峨讯纂局受须introduction to international tradeintroduction to international trade * 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. 凶硝蹦剑硷翅仆按煮抖持匿酵阑秸砸亲骚吼踢倪缚摊恃邪入米谭拨普枝髓introduction to international tradeintroduction to international trade * 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 F