International sale contract

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International sale contract The buyer and seller in different countries. The buyer and seller in different countries.

Characteristics:Characteristics: The subject of the contract have business

establishments registered in two different countries. Foreign currency used in payment could be either

or both sides. The goods - the subject of the sale contract

delivered out of the seller's country during contract performance.

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In terms of performance period

Short-term contracts

Long-term contracts

In terms of business relations content in sale contracts

Export contract

Import contracts

Temporary import for re-export contracts

Temporary export for re-import contracts

Transshipment contracts

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In terms of contract form, there are three kinds of contracts Written contract Oral contract Default contract

1980 Vienna Convention allows member countries to use these form.

In Vietnam, international sale of goods must be made on the basis of written contracts or the forms equivalent include telegrams, telex, fax, data messages and other forms prescribed by law.

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Written contracts may be made in various ways such as:

Include a written contract, clearly stating the contents of buying

- selling, trading conditions have been agreed upon and signed

by both parties

Include several documents such as telegrams, correspondence

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CONTRACT No…CONTRACT No…

Date…Date…

BetweenBetween:: Name: …Name: …

Address:.....Address:.....

Tel: ......Tel: ...... Fax: .........Fax: ......... Telex: ......Telex: ......

Represented by Mr ................Represented by Mr ................

Hereinafter called as the SELLERHereinafter called as the SELLER

AndAnd:: Name: …Name: …

Address:.....Address:.....

Tel: ......Tel: ...... Fax: .........Fax: ......... Telex: ......Telex: ......

Represented by Mr ................Represented by Mr ................

Hereinafter called as the BUYERHereinafter called as the BUYER

01-93/ XYZ- ABCSep. 07 2010

ABC Trading Co, Ltd. (Vietnam)

40 Hai Ba Trung Street, Ho Chi Minh City ,Vietnam

84-083-328999 328492 - ABC VT

Krakatau Fertilizer (Indonesia)

1# Jinko Road, Jarkata, Indonesia

8479900 57889 WSGTC CN Abdul Haris Nasution

Tran Minh Hieu

4839200

8461152

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The main articles and signature of contracting partiesArt.1. CommodityArt.2. QualityArt.3. QuantityArt.4. PriceArt.5. ShipmentArt.6. PaymentArt.7. Packing and marking

Art.8. WarrantyArt.9. PenaltyArt.10. InsuranceArt.11. Force majeureArt.12. ClaimArt.13. ArbitrationArt.14. Other terms and conditions

For the BUYER For the SELLER

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The commercial and technical name.

Ex: Printing machines laser Epson EPL 6100

The origin country.

Ex: Vietnam Robusta Coffee, Grade 2, Daklak origin, Crop 2009

The manufacturer name.

Ex: Fax machine Panasonic KXFP-152

The feature of the product.

Ex: Long grain White Rice 5% broken

The goods should be SIMPLE and EXACTLY described.We should write the name of the commodity with:

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Methods to describe the quality of the commodity :

the sample

the standards

the trade mark

the technical documents

the amount of a substance

the natural weight

the inspected and approved

the present value of the product

the description

the familiar normsFAQ

GMQ

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Identify Identify Units of Units of

Measures Measures and and

WeightsWeights

Method Method of of

identifying identifying quantityquantity

Types of Types of weight weight

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Method of identify quantity- Identify exactly, specifically

Ex : Motorcycle: 10,000

- Identify approximation ( more and less clause)

Ex: Rice: 10,000 MT more or less 5% at the Buyer’s option

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Types of weight Net weight:

Gross weight:

GROSS WEIGHT = NET WEIGHT + TARE

Commercial weight

Theorical weight

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CURRENCY OF PRICECURRENCY OF PRICE

METHOD OF IDENTIFYING METHOD OF IDENTIFYING PRICEPRICE

TERMS OF SALETERMS OF SALE

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FIXED PRICEFIXED PRICE

DEFERRED PRICEDEFERRED PRICE

REVISABLE PRICEREVISABLE PRICE

METHOD METHOD OF OF

IDENTIFYING IDENTIFYING

PRICEPRICE

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TIME OF DELIVERYTIME OF DELIVERY

PLACE OF DELIVERYPLACE OF DELIVERY

NOTIFICATION OF NOTIFICATION OF DELIVERYDELIVERY

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Other remarksPartial shipment: allowed or not allowed* Not allowed: total shipment* Allowed: the parties should decide who will

bear the additional costs arising from partial shipment, normally party requiring partial shipment

Transshipment: allowed or prohibited

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1. Currency of payment and the amount of payment

Currency of importer’s country

Currency of exporter ’s country

Another country

2. Time of paymentPre payment/ Payment in advance

Sight payment( immediate payment)

Deferred Payment

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3. Methods of payment

Remittance - Import Export Contract Terms

Mail Transfer (M/T)

Telegraphic Transfer (T/T)

Demand Draft (D/D)

Documentary Collection - Import Export Contract Terms

D/P at sight

D/P at days after sight (date)

Documents Against Acceptance (D/A)

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3. Methods of payment

D/C

Type of LC

The date of opening LC

The issuing bank

The advising bank

the beneficiary

issue date

expiry dateexpiry date

Shipment

•Time for advising bank notifying the seller the LC•The seller accept the LC•Time for preparing the commodities

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4. Payment documentsMean of paymentShipping documents are necessary for the settlement of payment.- Bill of Lading (B/L)- Packing List- A Commercial Invoice - Insurance Policy- Insurance Certificate- Certificate of quantity/weight- Certificate of origin- Certificate of quality

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Marking should be in pernament paint with recognized kind of

marks.

- Meet shipping regulations

- Ensure proper handling

- Help receiver identify shipments.

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Warranty period

Warranty terms and conditionThe manufacturer's warranty to the quality of solar moduleThe manufacturer warrants the solar modules to be free from defects in materials and workmanship under normal application, installation, usage service conditions. If the solar modules fail to conform to this warranty, then for a period ending 60 months from date of sale to the original end-customer, the manufacturer at its option, either repair or replacement or refund, or refund the purchase rice as paid by the Customer. The manufacturer guarantees output power of PV module is more than 25% of the minimum Peak Power within 10 years and more than 50% in 25 years, if can't reach the warranty data, the manufacturer will replace such loss in power either by replacing the defective PV modules or by refunding the Purchase Price.

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Late-delivery or non-delivery by any reasons except for

force majeure.

Late-payment due to reasons of the Buyer.

Delay of opening LC

Cancellation of the contract

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Insurance documents:

Party who buy the insurance

Insurance condition

Insurance document

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•Natural disasters:

fire, flood, storm, earthquake…

•Social disturbances: war, strike,…

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On the Basis of Terms and Conditions of the Contract

On the Basis of Consequence of Breach of Contract

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Main points:

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Example:

Claim

All claim by Buyer shall be informed by telex or cable immediately

after cargo completely received at destination port and be confirmed

in writing delivered to the Seller within 30 days after such discharge

( for claim of any kind of talent defects respectively) together with

survey report of international well-known surveyor.

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Arbitration is a consensual dispute method. It allows disputing Arbitration is a consensual dispute method. It allows disputing

parties to have a neutral party to assist them in arriving at a parties to have a neutral party to assist them in arriving at a

solution. solution.

Solving their problems without courts or lawyers.Solving their problems without courts or lawyers.

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Arbitration article shall be stipulated:

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