Discussion Board

Do we need to create the draft between buyer and seller in EXIM ?

In actual draft has no value in the International trade if you cant keep the payment terms safe but yes most people still do use a draft made under letter pad of a firm and has a signature and stamp in it. 

 

Sample International Contract for Sale of Goods

 

CONTRACT FOR SALE OF GOODS

I.

Subject-matter of the Contract

 

The Subject-matter of this Contract is particularly the obligation of the Seller to deliver goods as per terms and condition of Purchase Order.

 

II.

Sale of Goods

 

1. The Seller hereby agrees to deliver the Buyer goods......(enter your product)

 

2. The Seller fulfils his obligation to deliver the Goods when the Goods have been made available to Port in case of CIF / CFR or at loading port in case of FOB 

3. The Seller shall deliver the Goods to Buyer’s carrier on every (mentioned your frequency of delivery with date)

4. The title in the Goods shall pass to Buyer immediately after he collects original Bill of Lading.

5. The Buyer hereby declares he received all information regarding the Goods ( enter your product)

6. Seller shall send the Buyer documents related to the Goods within 7 days after delivery of Goods and at the Buyer‘s address set out in herein. 

(As per payment terms)

 

III.

Purchase Price

1. The Buyer shall pay the Seller the purchase price of the goods amounting USD ……………….. (hereinafter referred to as the „Purchase Price“).

2. (Enter your payment terms)

3. If the Buyer fails to pay the purchase price, the Seller shall have the right to default interest at the rate of 0,1 % of the outstanding amount for each day of default without prejudice to any claims for damage pursuant to the Article 74 of the Convention. 

 

IV.

Product Liability

1. The Seller shall be liable for any lack of conformity in Goods which exists at the time when the risk passes to the Buyer and which occurs within 24 months from the date of delivery of Goods by the Buyer’s carrier. The Seller declares that the Goods during a period of 24 months from the date of collection by the Buyer’s carrier will remain fit for the purposes for which the Goods would ordinarily be used or during this period will retain specified qualities (hereinafter referred to as the „Warranty Period“).

2. The Seller shall not be responsible for the defects arising out of the failure to follow operation instructions, for the defects caused by improper storage after the Goods were delivered or for the defects caused by circumstances that were beyond the reasonable control.

3. The Buyer shall, immediately upon delivery of the Goods by the carrier, duly examine the Goods and if the defects of Goods were apparent upon the collection of Goods, the Buyer shall promptly give notice on this to the Seller & insurance company

4. The Seller, upon receipt a notice from the Buyer stating the defect, promptly shall give a written statement and reply whether he accepts the claim for defects or not.

 

VI.

Exclusion of Liability

1. A party is not liable for a failure to perform any of his obligations if he proves that the failure was due to an impediment beyond his control and that he could reasonably be expected to have taken the impediment into account at the time of the conclusion of the Contract or to have avoided or overcome it or its consequences. The exemption provided by this Article has effect for the period during which the impediment exists.

2. The non-performing party shall give prompt written notice to the other party of the reason for its failure to perform and the extent and duration of its inability to perform. 

Company Signature & Stamp