The Introduction of Business Contracts
There is no doubt that a business contract is the most important legal document,which guides both the buyer and the seller to fulfill their duties and obligations.
1.1 Definition of a Business Contract
A contract is a binding agreement which creates an obligation between two or more parties.A valid contract requires a meeting of the minds,mutual exchange of valuable consideration,capacity to contract and the substantial satisfaction of imposed duties and conditions.Most contracts require a written agreement and signatures of both parties to be enforceable in a court of law.
A business contract is a legally binding and enforceable agreement signed by buyers and sellers in order to realize some certain business destinations under a certain legitimate procedure to get some certain rights and carry out obligations for each other.Laws governing business contracts are similar to that of other contracts. The obvious distinction is that the subject matter of a business contract generally involves a service or sale and is probably negotiated for a motive of gaining profits.
1.2 Classification of Business Contracts
According to different trade forms,international business contracts can be divided into the main categories as follows:
Contracts for International Sales of Goods:it mainly involves in the international sales of commodities between the buyer and the seller.The contract is usually made by the seller.
Contracts for International Technology Transfer:it refers to the contract for international technology transfer between two countries.
Contracts for Foreign Labor Service:it means the contract for providing labor service to another country.
Contracts for Sino-foreign Joint Ventures:such contracts are for establishing joint venture between Chinese entity and foreign investors.
Contracts for Sino-foreign Cooperative Development of Natural Resources:such contracts are mainly involved in cooperative development of natural resources between Chinese entity and foreign enterprises.
Contracts for International Leasing Affairs:the contracts are used for international leasing affairs of equipment,machinery or real estates.
Contracts for International Build-Operate-Transfer:such contracts are used for foreign direct investment project,such as BOT program.