ESSENTIAL CLAUSES OF CONTRACT.
To begin with I would like to determine the term “contracts”. Contracts are promises that the law will enforce. By law contracts are made between foreign trade organizations in writing. When striking a deal the standard contracts are widely used. Standard contracts are not a must. Some articles may be altered and supplemented. A contract consists of the following items:
Place and date of signing;
Legal titles of the contracting parties;
Subject of the contract;
The Subject of the contract names the product or service for sale/purchase.
Price and total value of the contract;
The price stated in a contract may be firm, fixed or sliding.
Quality of the goods;
The quality is to be in conformity with the technical specification of the contract. The quality of raw materials and foodstuffs is determined, as a rule, by standards; by sample; by description.
Insurance of goods;
Insurance guarantees the insurant party obtaining indemnity from the insurer in case of damage or loss the insurer is better protected if his goods are insured against all risks. The goods may be also covered against general and particular average.
Dates and terms of delivery;
Packing and marking;
Packing can be external (crate, bag) and internal (box, packet). Marking should be of recognized type (there are standards for it) and made in indelible paint.
Mode of payment (cheque, draft, letter of credit);
Sanctions and claims;
In case of the breach of a contract the sufferer makes a claim on the party, which fails to meet its contract obligations. The cause for complaint may be poor quality, breakage, damage, short weight, leakage, loss, delay, etc.
Force majeure is a force against which you cannot act or fight. This clause includes natural disasters (earth quarkes, flood, fire) such contingencies as war, embargo, strikes.
Settlement of disputes and arbitration;
Legal addresses and signatures of the parties.