Transcript for Episode 23 - How to draft a contract
A contract is a legally binding agreement that is enforceable by law. It offers complete clarity on everything agreed. So it’s important to draft one as soon as you’ve found a potential buyer for your product or service.
Let’s explore some contract elements that may need more consideration when exporting internationally.
Contract elements.
The terms of delivery should state whether you or the buyer are liable for any damages during shipping.
The period of shipment will include who is liable if your goods are delayed. It’s a good idea to set a specific date of dispatch from country of origin rather than a specific date of arrival.
You’ll need to agree terms on whether goods can be delivered in batches and what happens if more than one carrier is used. This is referred to as transhipment.
The taxes, duties and charges relating to the exportation of goods are normally part of the price. But this should be made clear.
Regarding terms of payment, it’s really important to get it in writing, including the mode and method.
The cost, type of licenses and permits can differ between countries. So be clear on who’s responsible for what.
You’ll also need to state the nature, manner and aspects of any inspections required by your buyer. Especially if these are different from those laid out under the international quality control and pre-shipment inspection rules.
When drafting contracts we recommend seeking international legal support to help you both in the UK, and your chosen market. Particularly when it comes to understanding local laws.
Let’s explore some contract elements that may need more consideration when exporting internationally.
Contract elements.
The terms of delivery should state whether you or the buyer are liable for any damages during shipping.
The period of shipment will include who is liable if your goods are delayed. It’s a good idea to set a specific date of dispatch from country of origin rather than a specific date of arrival.
You’ll need to agree terms on whether goods can be delivered in batches and what happens if more than one carrier is used. This is referred to as transhipment.
The taxes, duties and charges relating to the exportation of goods are normally part of the price. But this should be made clear.
Regarding terms of payment, it’s really important to get it in writing, including the mode and method.
The cost, type of licenses and permits can differ between countries. So be clear on who’s responsible for what.
You’ll also need to state the nature, manner and aspects of any inspections required by your buyer. Especially if these are different from those laid out under the international quality control and pre-shipment inspection rules.
When drafting contracts we recommend seeking international legal support to help you both in the UK, and your chosen market. Particularly when it comes to understanding local laws.
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