Process Of Contract Formation

In accordance with the provisions of the Convention,

When participating in the covenant, our country reserves the form of contract, stipulates that the international sale and purchase contract must be written in order to be effective.

Therefore, in the following two situations, a written contract is the necessary legal step after a paction is concluded.

A written contract must be signed before the paction concluded through oral negotiation.

If a party has declared that a written contract has been agreed upon by correspondence, the contract will come into force even after a written contract has been reached, even if the two parties have reached agreement on the terms of the paction.

However, in international trade, the two parties often sign a written contract after negotiation.

This is because, by signing a contract, the conditions for altering the correspondence and telegram are eventually summed up in a standard contract text and signed by both parties.

Such a contract is not only a complete and effective legal document, but also a complete and clear basis for performance.

The form and content of B. written contract

In international trade, there is no uniform provision for the form and content of written contracts.

From the simpleness of the format, it is usually called the contract, but the Confirmation is not a substantial difference.

There are also the names of Memorandum (Memo), agreement (Agreement) and so on.

The content of the contract usually consists of three parts.

About the first part: including the name and number of the contract and the names, addresses, telex or fax numbers of both parties.

This article: the terms of the contract, that is, the specific stipulations of the terms and conditions of the paction, including six essential clauses, such as name, quality, quantity, packing, price, pportation, payment, and insurance, inspection, claim, force majeure and arbitration.