Necessary Points For Foreign Trade Contracts

An effective contract for international sale of goods must have the necessary content, otherwise it will make it difficult for the parties to perform their obligations, to remedy the breach or to deal with disputes. Generally speaking, the contract of international sale of goods should include the following 7 aspects.

　　 I. quality clause (QualityClause)

The quality of commodities (QualityofGoods) refers to the integration of the internal quality and appearance of goods. The former includes natural properties such as physical properties, mechanical properties, chemical composition and biological characteristics of the commodity; the latter includes the appearance, color, style, or transparency of the merchandise.

The basic content of the quality clause is the name, grade, standard, specification, trademark or brand of the commodity being traded. Ways to express quality

(1) in kind, the quality is expressed in physical terms, including the actual quality of the commodity and the sample. 1. see spot deal

When the seller and the buyer use the spot transaction, the buyer or his agent usually checks the goods at the place where the seller holds the goods. Once the transaction is concluded, the seller should inspect the goods delivered according to the other party's inspection. As long as the seller delivers the goods that have been inspected, the buyer shall not object to the quality. This practice is mostly used in consignment, auction and sale business.

2. transaction by sample.

A sample usually refers to a small amount of material that is extracted from a batch of goods or designed and processed by the production and use department to reflect and represent the quality of the whole batch.

In international trade, according to the difference of sample providers, it can be divided into the following categories:

(1) seller's sample (Seller 'sSample)

(2) buyer's sample (Buyer 'sSample)

(3) the equivalent sample (CounterSample), also known as the "confirmation sample".

(two) presentation of quality by description

Quality is defined by instructions. It means using words, charts, photographs and so on to explain the quality of traded commodities. In this way of expressing quality, it can be subdivided into the following:

1. sale by specification (SalebySpecification)

2. grade buying and selling (SalebyGrade)

3. by standard Trading (SalebyStandard)

4. sales by specifications and drawings (SalebyDescriptionsandIllustrations)

5. trade mark (TradeMark) or brand (BrandMark).

6. sale by name of origin (NameofOrigin).

The quality mobility range (QualityLatitude) means that the quality agreed between the two parties agreed to allow the seller to deliver the goods is slightly different from the quality of the contract requirements. The buyer will not have the right to refuse to reject it as long as it does not exceed the scope of the motor range.

Quality tolerance (QualityTolerance) refers to the error of product quality stipulated by international business organizations or recognized by different industries.

The quality reduction clause is attached to the quality clause, which stipulates the corresponding adjustment of the price of the goods when the quality of the goods delivered is different from the requirements of the quality clause in the contract.

　　 Two, quantity clause (QuantityClause)

The basic content of the quantity clause is to stipulate the quantity of delivery and the unit of measurement used. If the goods are calculated by weight, the method of calculating the weight should be stipulated, such as gross weight, net weight, gross and net weight, etc.

Unit of measurement and measurement method of commodity quantity

1. determine unit of measurement according to variety.

Different commodities in international trade require different units of measurement. The following are usually used:

(1) by weight: grams, kilograms, metric tons, long tons, short tons, pounds, carats.

(2) by number: piece, double, set, hit, roll, roll, roll.

(3) length, metre, foot, and yards.

(4) area: square meters, square feet, square yards.

(5) by volume: cubic meters, cubic feet, cubic yards.

(6) by volume: liters, gallons, quarts.

2. differences in measurement units due to the different systems of weights and measures in different countries.

Because of all the countries in the world Weights and measures Different systems result in different quantities expressed by the same unit of measurement. In international trade, the international system of units (TheInternationalofUnit) is commonly adopted on the basis of the metric system (TheMetricSystem), the British system (TheBritainSystem), the American system (TheU.S.System) and the international standard measurement organization (EDI). According to the Metrology Law of the People's Republic of China, "the State adopts the international system of units. The international unit system of measurement and other units of measurement selected by the state are the national legal units of measurement. " At present, in addition to some specific areas, it is generally not allowed to use illegal units of measurement. In addition to taking care of the measurement units of the metric system, the British system or the US system, the export commodities of our country should use the legal units of measurement in China. The import of machinery and equipment and instruments in China shall be subject to the use of legal units of measurement. Otherwise, it is generally not allowed to import. If there is a special need, it must also be approved by the relevant standards.

The above weights and measures system There is a difference in the quantity expressed by the same unit of measurement. For example, in terms of the tonnes of weight, the metric countries generally adopt metric tons of 1000 kg per metric ton, and the British countries generally adopt long tonnes, which are I016 kilograms per long ton, and the United States system generally adopts short ton, and each short ton is 907 kilograms. In addition, some countries also have customary or statutory units of measurement for certain commodities. Method of calculating weight

In international trade, many goods are measured by weight. According to general business habits, there are usually several methods of calculating weight:

1. gross weight (GrossWeight)

Gross weight refers to the weight of the commodity itself plus the weight of the package.

This method of weighting is generally applicable to low value commodities.

2. net weight (NetWeight)

Net weight refers to the weight of the commodity itself, that is, the actual weight of the goods after the packaging is removed. Net weight is the most common method of weighing in international trade. However, some low value agricultural products or other commodities are sometimes weighed by "GrossforNet".

In use Net weight When weighing, how to calculate packing weight has the following international practices.

(1) calculated according to the actual tare (ActualTareorRealTare);

(2) calculated according to the average tare (AverageTare).

(3) calculated according to the customary tare (CustomaryTare).

(4) calculated according to the agreed tare (ComputedWeight).

3. common quantities (ConditionedWeight)

Some commodities, such as cotton, wool and raw silk, have relatively strong hygroscopicity. The moisture contained is greatly influenced by the objective environment, and their weight is very unstable. In order to accurately calculate the weight of such goods, the international calculation is usually based on the common amount. The calculation is based on the clean weight of the goods (i.e. the weight after drying the commodity water) plus the weight of the product of the international regurgi tion and the clean weight.

4. theoretical weight (TheoreticalWeight)

For some commodities that are produced and traded according to fixed specifications, the total amount can be calculated from the number of goods, if their weight is the same or the weight of each piece is the same.

5. legal weight (LegalWeight) and net weight (NetWeight)

In accordance with the provisions of customs laws of some countries, when the volume tax is levied, the weight of goods is calculated by legal weight. The so-called legal weight is a commodity plus the weight of the packaging materials directly touching the goods, such as the sales package, and the weight of the pure goods represented by the weight is called net weight in kind. Relevant provisions on the magnitude of the terms of reference

In order to facilitate the execution of contracts and avoid disputes, the quantity clauses in import and export contracts should be specific and specific. Generally speaking, it is not appropriate to use the words "approximate", "approximate", "left and right" (About, Circa, Apporoximate) and so on.

The short and short term clause (MoreorLessClause) means that the quantity of delivery can be increased or reduced in the quantity terms of the contract, but the rate of increase or decrease shall not exceed the percentage specified.