EXPORT SALES CONTRCT

Lec25/16 Date

Steps
Letter of intent.
Contract. ( Written). Notarised. Stamped by Ministry of External Affairs
Purcahase invoice.
L/C.

Written contract. Constructed contract.

.To settle the ‘conflict of laws’ (1. choice of
law2) choice of jurisdiction3) recognition and
enforcement of foreign judgments).
.Incorporates all necessary details for clarity
because many agencies are involved in exports.
Fairly large part of export from India without
written contract.
Handicrafts, jewellery, garments. Documents,
faxes, messages must be maintained by the
exporter.
Private contracts. No involvement of the State.
No provision of the public law should be
violated. Government of India has made some
laws vis-à-vis these contracts and these laws
should not be violated by the terms of the export
contract.
Foreign Trade (Development and Regulation)
Act, 1992. Foreign Exchange Management Act,
1999 ( FEMA). The Export ( Quality Control
and Inspection) Act, 1963.
Customs Act, 1962. International Commercial
Practices. UCPDC ( Uniform Customs and
Practices for Doucmentary Credit).
INCOTERMS
Elements of an export contract-
1.The parties.
2.The description of the product.Quality.
Quantity Packing.
3. Origin. COO. Certificate of Origin.
4. Port of loading.
5. Port of Discharge.
Specifications. Inspection Delivery. Discharge
rate ( WWD, SATSHEX EIU). Discharge terms
( WICCON, WIFPON, WIBON), Demurrage
( container detention charge, taken by carrier+
overtime terminal storage charge, taken by
port ), sweeping and/or purging, draft at
discharge port, partial shipment, transshipment,
insurance, vessel’s age, import/export license,
price,, payment term, documents, force majeure,
performance guarantee, arbitration, authority to
execute the agreement, execution of agreement (
this agreement may be executed simultaneously
in two counterparts to be transmitted via
facsimile,each of which shall be deemed as an
original), declaration ( the undersigned parties
accept agree-----), witness of buyer and seller,
seller’s and buyer’s banking information ( bank
name, address, tel no.m fax no., swift code,
telex, bank officer, account name, account no.,
name of two officers, direct tel no.) ]
Q.Force majeure means
A. Act of God. B Any untoward event C.
Pilferage D. Demurrage

Q. Demurrage means
A. Delay charges at the port B. Purging charges
C Sweeping charges. D. Damage charges.

Q. In high sea sale it is important that the buyer

asks seller to pay demurrage on disharge port

A. Yes B No C Can not say D All.

Q Demurrage is a charge taken by

A. Port authorities B Custom authorities C.

Shipping company D CHA.
Q. Demurrage includes the following- A.
Detention B Delay C Both D None.
.