The signing of a foreign economic activity contract is the central part of international trade and one of the most significant risks. There you can make mistakes that cannot be corrected later.
Therefore, we decided to disassemble the control points in this contract.
Spell out the description of the product.
If it is a complex product for which the detailed clarification is necessary, then be sure to draw up a specification for the contract with a detailed description of all the main characteristics.
Indicate the terms of delivery, according to Incoterms.
Incoterms are changed and supplemented every year. Take this fact into account and study the additions so that the terms of delivery are correctly fulfilled.
Be sure to indicate the amount of the contract and prices regarding the conditions and place of delivery.
Be sure to record how many goods, at what price, in what place and under what conditions will be shipped.
Terms of payment must be written in an apparent reference to the supplier's actions or to the time frame.
It is essential to consider possible delays due to holidays and the time for bank transfer.
Terms of acceptance and transfer shall be negotiated to take into account the terms of delivery.
There, be sure to indicate the possibility of controlling the goods' parameters at the supplier's warehouse, at the sender's port, at the recipient's dock and your warehouse.
Be attentive to the issues of arbitration.
Pay particular attention to the location and country language of the arbitration place.
Pay special attention to the correctness of your details and your partner.
This is the basis of the contract! You must obtain confirmation of the authority of the person who signs your contract. The bank details of the seller are vital - money must be transferred to them.
We would like to pay special attention to arbitration. Based on the sale and purchase of the goods, the buyer, after paying for the goods' cost, is left alone with all potential problems, hidden defects, etc. Of course, it is worthwhile to stipulate the warranty obligations in the contract well since guarantees are an indicator of the seller's confidence in his product. But when all the negotiating resources are spent, arbitration becomes an essential tool for resolving the dispute.
Usually, each of the parties insists on arbitration in their country. Lawyers are very active in defending this point. The way out can be pretty simple:
1. The third jurisdiction is chosen as the country of arbitration.
2. Agree on the place of arbitration according to the jurisdiction of the claimant. If the seller is the claimant, then the arbitration is carried out in the seller's country; if the buyer is the claimant, the arbitration is in the buyer's country.
It is essential to understand where to file a claim if necessary.