Illustrate International Contracts of Sale

Question

Illustrate International Contracts of Sale?

Answer 1

An export sale requires four documents, each of which plays a distinct role in the sale transaction:

1. Contract of Sale

a. Trade terms and terminology must have the same meaning to both parties, so reference is often made to published interpretations of international trade terms.

b. There should be a reference to the governing law.

c. The contract is very detailed as to quantity, quality, price, shipping, etc.

d. There is usually an arbitration clause to resolve disputes.

2. Bill of Lading – This is a contract between the seller and the carrier of goods.

3. Insurance – This is required to protect against the hazards associated with shipment of goods.

4. Commercial Invoice – This is usually required by the buyer’s customs office.