Export contract

The export contract is used for the international sale of certain products (industrial supplies, raw materials, manufactured goods), which are projected for resale, where the buyer is a trader, importer, distributor or wholesaler that will sell the products to another company or merchant. Though it is common practice to export products based a proforma invoice or quotation received from exporters, it is a safe practice to use written and legal export contracts. Some of the essential elements of an export contract are:

  • Products, standards and specifications.
  • Units of measure in both figures and words.
  • Total value. The total contract value in words and figures, and in a specific currency.
  • Terms of delivery. Delivery terms, based on the Incoterms.
  • Terms of payment. Amount, mode and currency.
  • Documentary requirements. Documents needed for international trade transactions.
  • Delay in delivery. Damages due to the importer from the exporter in the event of late delivery owing to reasons other that force majeure.
  • A contract should provide for the insurance of goods against loss, damage or destruction during transportation.
  • Force majeure. Provisions in the contract defining circumstances that would relieve partners of their liability for non-performance of the contract.
  • Applicable law. The law of the country that is to govern the contract.
  • Arbitration clause to facilitate amicable and quick settlement of disputes or differences that may arise between the parties.

See also International sale contract. Model of Export Contract.

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