3.3 Signing Business Contract签订商业合同
Once an acceptance,be it oral or in writing,reaches the other party,a deal is concluded.Different from those in domestic trade,internationallawsuits are costly and time-consuming,so no one likes to get involved into any lawsuits.It is thus important that you negotiate with care so that when a deal is made,both of you reach common understanding of the terms of sale and know exactly and unmistakably what is expected of you.
However,owning to the inconveniences caused by the long distance between exporter and importer,international contracts tend to be more flexible than domestic ones in format,which could be a traditional contract or alternative formats such as a sales confirmation,a purchase confirmation,an agreement or a confirmed proforma invoice.A sales confirmation is normally drafted by the exporter and sent to the importer for confirmation,while a purchase confirmation is the other way round.A proforma invoice,as a “preview”of the final commercial invoice,can serve as an offer in negotiations,and a contract when confirmed by both parties.However,for large and complicated sales,a detailed contract is still needed and signed by both parties.The contract can be signed face to face,but this is rare in international businesses.Mostly you send two signed copies to the importer,asking him/her to sign and send one back for file.This practice is known as counter-sign.Faxed contracts are also acceptable at times of urgency.
An import or export contract is generally more detailed than a domestic one and may include the following terms(see Figure 3-3):
♦Name and address of the exporter and importer
♦Date and location of signing the contract
♦The willingness and guarantee of both sides to signing the contract
♦Product description:name,model,quality,quantity,packaging and marking,etc.of the goods.
♦Unit price and total amount
♦Terms of payment
♦Time of shipment
♦Port of loading and port of destination
♦Insurance
♦Inspection
♦Documents required by the importer
♦Complaint or Claim
♦Dispute Resolution
♦Force majeure
♦Remarks
♦Signature
Figure 3-3 A Sample Sales Contract for Export