The articles in international business contract

TOPIC
THE ARTICLES IN AN INTERNATIONAL
BUSINESS CONTRACT

LOGO
QUESIONS



What is an international business contract
What is an international business contract
and its disposition?
and its disposition?



How many articles in an international
How many articles in an international
business contract? What are main
business contract? What are main
articles?
articles?

LOGO
INTERNATIONAL BUSINESS CONTRACT
DEFINITION
DEFINITION
International business
International business
contract is an agreement
contract is an agreement

to perforn commercial
to perforn commercial
activities conducted
activities conducted
outside Vietnam in cases
outside Vietnam in cases
where the involved parties
where the involved parties
agree to this Law for
agree to this Law for
application, or where a
application, or where a
foreign law or a treaty to
foreign law or a treaty to
which Vietnam is a
which Vietnam is a
contracting party
contracting party
stipulates the application
stipulates the application
of this Law.
of this Law.

LOGO
•


Disposition of contract
Disposition of contract
CONTRACT No …

Place, Date …
Between: Name: …
Address: …
Tel: … Fax: … Email: …
Represented by …
Hereinafter called as the SELLER
And: Name: …
Address: …
Tel: … Fax: … Email: …
Represented by …
Hereinafter called as the BUYER
The SELLER has agreed to sell and the BUYER has agreed to buy
the commodity under the terms and conditions provided in this
contract as follows:
Art.1: Commodity:
Art.2: Quality:
Art.3: Quantity:
Art.4: Price:
Art.5: Shipment:
Art.6: Payment:
Art.7: Packing and marking:
Art.8: Warranty:
Art.9: Inspection:
Art.10: Force majeure:
Art.11: Claim:
Art.12: Arbitration:
Art.13: Other terms and conditions:
… (Loading terms/loading and discharging rate; Performance Bond,
Insurance; Penalty)
For the BUYER For the SELLER

LOGO
CONTENT OF THE ARTICLES
Commodity
1
Quality/ Specification
2
Quantity/ weight
3
Shipment/ Delivery
4
Price
5
Settlement/payment
6
Packing - Marking
7
Document requirement
8
Penalty
9
Insurance
10

LOGO
CONTENT OF THE ARTICLES
Claim
11
Arbitration
12

Force Majeures
13
Inspection
14
Other Claus/Generalities
15
Termination of the contract
Guarantee
16
Confidentiality
19
Patent right
20
21
Installation – Test run –
Commissioning
18
Tranning
17
ặt

LOGO
ARTICLE 1 - COMMODITY

Including the scientific
Including the scientific
name
name

Including local of

Including local of
manufacturer’s name.
manufacturer’s name.

Including name of
Including name of
manufacturer
manufacturer

Including specifications
Including specifications
of goods
of goods

Including uses’s goods
Including uses’s goods

Including
Including
Harmonized
Harmonized
System (HS) of goods
System (HS) of goods

Including trade name
Including trade name

Mix
Mix


Groundnut Kernels (
Groundnut Kernels (
scientific
scientific
name:
name:
Arachis Hypogea)
Arachis Hypogea)

Bat trang garamic, Phu Quoc
Bat trang garamic, Phu Quoc
Fish sauce,…
Fish sauce,…

Iphone, head and shoulder,…
Iphone, head and shoulder,…

Honda super cub custom C70
Honda super cub custom C70
CMR – IC
CMR – IC

03049900 (Frozen ESO Surimi)
03049900 (Frozen ESO Surimi)

Urea fertilizer
Urea fertilizer

Vietnamese white rice, long
Vietnamese white rice, long

grain, crop 2015, 5% broken
grain, crop 2015, 5% broken

LOGO
ARTICLE 2: QUALITY/ SPECIFICATION

As per sample
As per sample

Standard/catergory
Standard/catergory

As technical documents
As technical documents

As per contents
As per contents

As per natural weight
As per natural weight

Specification
Specification

As per description of goods
As per description of goods

As trademark
As trademark


As per vague criteria
As per vague criteria

As inspected and approved
As inspected and approved

As it sale/ tale quale
As it sale/ tale quale

Agricultural products, mineral, processed
commodities,

Process product

Machine, accessories,…

Agricultural products, mineral, medicament

Cereal, seafoods,

Machine, accessories carrier, electronic
device,…

Indescribable goods

LOGO
ARTICLE 2: QUALITY/ SPECIFICATION
As per contents:
As per contents:
Fertilizer import contract

Fertilizer import contract
•
Specification
Specification
•
Nitrogen 46% min
Nitrogen 46% min
•
Moiture 0.5% max
Moiture 0.5% max
•
Biuret 1.0% max
Biuret 1.0% max
•
Color: white
Color: white

LOGO
ARTICLE 2: QUALITY/ SPECIFICATION
As trademark
As trademark
•
Instant coffee Trung Nguyen G7
Instant coffee Trung Nguyen G7
•
Tiger beer
Tiger beer

LOGO
ARTICLE 2: QUALITY/ SPECIFICATION
Technical document
Technical document
The quality is pursuant to the
The quality is pursuant to the
technical document herein as
technical document herein as
attached which has been
attached which has been
approved by the buyer and is an
approved by the buyer and is an
integral part of this contract
integral part of this contract

LOGO
ARTICLE 2: QUALITY/ SPECIFICATION
Specification
Specification
•
Mainboard ECS 845GV-M3 – Socket 478
Mainboard ECS 845GV-M3 – Socket 478
•


CPU Intel Pentium 4 Processor – Socket 478
CPU Intel Pentium 4 Processor – Socket 478
•

DDRAM 128MB – Bus 333
DDRAM 128MB – Bus 333
•


FDD 1.44MB
FDD 1.44MB
•


HDD 40.0 GB
HDD 40.0 GB
•


Monitor 15 inch Samsung SyncMaster
Monitor 15 inch Samsung SyncMaster
•


Medium Tower Case ATX ROBO
Medium Tower Case ATX ROBO
•


Keyboard PS/2 ROBO Multimedia
Keyboard PS/2 ROBO Multimedia
•

Mouse PS/2 ROBO Optical Scroll
Mouse PS/2 ROBO Optical Scroll
•


CD Rom 52X
CD Rom 52X

LOGO
ARTICLE 3 – QUANTITY/ WEIGHT
Unit of
quantity
Methods of
regulations
weight
Methods of
regulations
quantity

LOGO
ARTICLE 3 – QUANTITY/ WEIGHT
Unit of quantity
Unit of quantity

Unit: the, cases, boxes…
Unit: the, cases, boxes…

Imperial/USA system
Imperial/USA system
•

Metric system: KG, MT, LT, ST, grain, dram, pound…
Metric system: KG, MT, LT, ST, grain, dram, pound…
•


inch, foot, yard, mile
inch, foot, yard, mile
•


square inch, square yard, acre…
square inch, square yard, acre…
•


gallon, bushel, barrel…
gallon, bushel, barrel…
•


gross, set, dozen
gross, set, dozen
…
…

LOGO
ARTICLE 3 – QUANTITY/ WEIGHT
Remember accurate
•
15,000 Barrels only

•
Gallons only 525,000 UK.
Record roughly
About,Approximately,
More/less,From to…
+About 10,000MT ~ 5% at
the seller's option;
+10,000MT + 5% at the
seller's option;
+ from 9500 MT to 10500
MT at the seller's option
Methods of regulations quantity

LOGO
ARTICLE 3 – QUANTITY/ WEIGHT
Methods of regulations weight
Methods of regulations weight
Methods of regulations weight

Gross weight: The total weight,
including contents, packaging, etc.

Net weight: The weight of
the contents, not including any
packaging, etc.

Net weight = Gross weight - tare

LOGO
ARTICLE 3 – QUANTITY/ WEIGHT

Methods of regulations weight
Methods of regulations weight

Theoretical weight
Theoretical weight

Trade weight
Trade weight


100 + W
100 + W
TC
TC


G
G
TM
TM
= G
= G
TT
TT


X
X

100 + W
100 + W
TT
TT



LOGO
ARTICLE 4 - SHIPMENT/ DELIVERY
1
Time of shipment
2
Place of shipment
3
Delivery method
4
Note of shipment

LOGO
ARTICLE 4 - SHIPMENT/ DELIVERY
Time of shipment
Time of shipment

From (June 16th, 2015) To (July 16th, 2015).
From (June 16th, 2015) To (July 16th, 2015).


Not later than July 31st 2015
Not later than July 31st 2015

While 30 days after L/C issued date
While 30 days after L/C issued date

Immediately
Immediately

As soon as possible
As soon as possible

LOGO
ARTICLE 4 - SHIPMENT/ DELIVERY
Place of shipment
Place of shipment

Place of delivery specified in the contract
Place of delivery specified in the contract

Place of delivery according to Incoterms
Place of delivery according to Incoterms





LOGO
ARTICLE 4 - SHIPMENT/ DELIVERY
Delivery method

Delivery method

Transhipment (Allowed/
Transhipment (Allowed/
Not Allowed)
Not Allowed)

Partial shipment/
Partial shipment/
Shipment by Instalment
Shipment by Instalment



LOGO
ARTICLE 4 - SHIPMENT/ DELIVERY
Note of shipment
Note of shipment

The buyer notify to the seller: The name and
The buyer notify to the seller: The name and
number of ship, carrier name, place of delivery,
number of ship, carrier name, place of delivery,
delivery time
delivery time
…
…

The seller notify to the buyer:
The seller notify to the buyer:

Results delivery,
Results delivery,
quantity and quality are actually delivered, on
quantity and quality are actually delivered, on
handling on board, on the level B/L and the
handling on board, on the level B/L and the
number of B/L …
number of B/L …

LOGO
ARTICLE 5 – PRICE
1
Money of account

Money of seller’s
country

Money of buyer’s
country

Money of third
country

USD, JPY, EUR…
2
Pricing method

Fixed Price

Flexible price


Migratory price

Rivesable price

Sliding scale
price
3
Discount

Simple
discount rate

Chain discount
rate

LOGO
ARTICLE 6 – SETTLEMENT/ PAYMENT
01
02
03
04
r
Currency of payment
Time of payment
Payment document
Methods of payment

LOGO
ARTICLE 6 – SETTLEMENT/ PAYMENT

Currency of payment
Currency of payment
•
Mon
Mon
e
e
y
y
of
of
sell
sell
er
er
’s country
’s country
•
Mon
Mon
e
e
y
y
of
of
buyer’s country
buyer’s country
•
Money of third country

Money of third country
•
USD
USD
, JPY,
, JPY,
EU
EU
R
R
,…
,…