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Chapter 3 - International Sales Contract - Part 1
Chapter 3 - International Sales Contract - Part 1
FOREIGN
TRADE
OPERATIONS
INTERNATIONAL
SALES
CONTRACT
CHAPTER 3
PART 1
1
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IN THIS CHAPTER
1. Concept of International sales contract
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WHAT IS A CONTRACT?
whenever we buy
goods and/or
services, we enter into
a contractual
relationship
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SUBJECT MATTER
WHAT IS SOLD/PURCHASED
Subject
matter
Seller Buyer
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TRANSFER OF TITLE
Transfer of title
Seller Buyer
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GOODS (PL)
THINGS THAT ARE PRODUCED TO BE SOLD
goods
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different nations
place of business: the country where the business is conducted (Article 10,
CISG)
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Subject:
Buyer and Seller, who can be physical person, legal
person and the Government.
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Content:
Showing rights and responsibilities of parties concerning
title transfer and how the seller gets paid and buyer
gets delivery of the goods.
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$
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GOVENRING LAW
Examples:
General Agreement on Tariffs and Trade (GATT) (1947 - 1994)
General Agreement on Trade in Services (GATS) (1/1995)
Agreement between the United States of America and the Socialist
Republic of Vietnam on Trade Relations (BTA) (2000)
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GOVERNING LAW
Examples:
CISG – Convention on Contract for International Sale of
Goods, United Nations. (1980)
ULIS – Convention relating to a Uniform Law on the
International Sale of Goods (The Hague, July 1, 1964)
The Hague Rules of 1924 – The International Convention for
Reunification of Certain Rules Relating to Bill of Lading.
(Brussels, 25/8/1924).
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GOVERNING LAW
Common Law (Anglo-American law)
Civil Law (Romano-Germanic law)
Islamic Law
Indian Law
Chinese Law
African Law
Socialist Law
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• Short-term/Isolated contract
• Long-term/Ongoing contract
• Export contract
• Import contract
• Temporary import for re-export
• Temporary export for re-import
• Transfer
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IN THIS CHAPTER
1. Concept of International sales contract
2. Requisites to the effect of an international sales contract
3. Main contents of contracts
4. Major terms and conditions in international sales contracts
5. Execution of International sales contracts
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2.1. Principles
(True agreement)
2.4. Legal
2.5. Valid form content &
essential terms
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• Mistake
• Threat/Duress
• Fraud
• Gross disparity
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LEGAL CAPACITY
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must be in writing
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IN WRITING
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In international custom:
A contract = offer + acceptance of the offer
A contract = order + confirmation of the order
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counter-
offer contract
offer
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TERMS (PLURAL N)
the conditions that people offer, or accept when they make an agreement
or a contract
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IN THIS CHAPTER
1. Concept of International sales contract
2. Requisites to the effect of an international sales contract
3. Main contents of contracts
4. Major terms and conditions in international sales contracts
5. Execution of International sales contracts
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BECAUSE
INTERNATIONALBUSINESSTRANSACTIO
N S are complicated by the movement of goods and services
between foreign jurisdictions with different legal systems.
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What Your
Importance Contracts
of Written Know Your Anticipate Should
Contracts Jurisdiction Problems Include
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CONTRACT No …
Place, Date …
Between: Name: …
Address: …
Tel: … Fax: … Email: …
Represented by …
Hereinafter called as the SELLER
And: Name: …
Address: …
Tel: … Fax: … Email: …
Represented by …
Hereinafter called as the BUYER
The SELLER has agreed to sell and the BUYER has agreed to buy the commodity under the terms and conditions provided in this
contract as follows:
Art.1: Commodity
Art.2: Quality
Art.3: Quantity
Art.4: Price
Art.5: Shipment
Art.6: Payment
Art.7: Packing and marking
Art.8: Warranty
Art.9: Penalty
Art.10: Insurance
Art.11: Force majeure
Art.12: Claim:
Art.13: Arbitration:
Art.14: Other terms and conditions:
… (Loading terms/loading and discharging rate; Performance Bond, Insurance; Penalty)
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1. Title
2. Contract No.
3. Place and Date of entry
4. Names and addresses of the parties
5. Definitions
6. Background information
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3.3. CLOSING
Number of the contract to be made and retained by each
party
Contract language: if the contract is written in many
languages, it should be expressly stipulated which version shall
prevail in the event of dispute.
Validity of the contract
Regulations with respect to the amendment and addition of
the contract
Authorized signatures of the contracting parties
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References
1. International Trade Centre. Model Contracts For Small Firms: Legal
Guidance For Doing International Business. 2010. p35-p58. Retrieved
from http://www.intracen.org/model-contracts-for-small-firms/
2. United Nations Convention on Contracts for the International Sale of
Goods 1980 (CISG)
3. James R. Pinnells. Exporting and the export contract. Prodec. 1994
4. Belay Seyoum. Export-import theory, practices, and procedures (second
edition). Taylor & Francis, 2009
5. Jim Sherlock & Jonathan Reuvid. The Handbook of International Trade -
A Guide to the Principles and Practice of Export (2nd edition). GMB
Publishing Ltd., 2008
6. Donna L. Bade. Export/import procedures and documentation (fifth
edition). Amacom, 2015
7. GS. TS Đoàn Thị Hồng Vân & ThS. Kim Ngọc Đạt. Quản trị xuất nhập
khẩu, NXB Kinh tế Tp. HCM, 2016
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