Bank Guarantees A bank guarantee may be required in an export sale. The buyer may be required to obtain a guarantee in favour of the seller under the sale contract. It may be provided that the guarantee is to take effect if no letter of credit or equivalent assurance of payment is provided within a […]
Overview Letters of credit, often called bankers’ commercial credits are a common method of payment for goods in export sales. The buyer arranges for payment through a bank, usually in the seller’s country, on the presentation of specific documents usually the bill of lading and other transport documents and on the performance of any other […]
Insurance Obligations In an export transaction, the sale of goods contract should provide that the costs of and duty to effect, insurance during transit shall be paid for and undertaken by either the seller or buyer, as the case may be. The INCOTERMS may define who is to effect and pay the cost insurance. If […]
International Sale of Goods It is essential that there is a clear written contract between buyer and seller, specifying what has to be delivered and the terms of sale. Supply contracts should set out where the goods are to be delivered. It should specify who is responsible for every stage of the journey, including custom […]
Cost and Freight Cost Insurance Freight Under Cost and Freight (CFR) and Cost Insurance Freight (CIF), the seller is responsible for arranging and paying for the main carriage. The risk of damage and loss rests with the buyer. CFR and CIF are used in relation to transport by sea or inland waterways. Under Cost and […]
Free Terms The terms Free Carrier (FC or FCA), Free Alongside Ship (FAS) and Free on Board (FOB) provide that the seller is responsible for arranging for and delivering the goods to a carrier. FOB and FAS refer to sea or inland waterway transport. Under FAS the seller must complete all export documentation and is […]
Convention on the International Sale of Goods The Vienna Convention on the International Sale of Goods provides default rules, similar to those in the Sale of Goods Act, for international sales. If the parties are in different countries, there is an international sale, and they can stipulate that the international rules apply. The Convention has […]
General Because international trade involves multiple jurisdictions, various international bodies, governmental and private trade bodies have developed uniform rules, forms and conventions in order to facilitate trade. Some uniform rules are intended to apply to all international trade transactions of a particular type. Some are given the force of law by Conventions entered by States […]
Consumer Rights Directive The Consumer Rights Directive was implemented in the UK through the Consumer Contracts (Information Cancellation and Additional Payments) Regulations 2013. The regulations provide for information to be furnished to consumers in all types of contracts including distance on-premises and off-premises contracts and a right to withdraw from distance and off premises contracts.The […]
E-Commerce Directive Under the Electronic Commerce (EC Directive) Regulations, the e-commerce regulations, businesses providing information service (any service normally provided for remuneration at a distance by means of electronic equipment for the processing and storage of data and at the individual request of the recipient) must make certain corporate information available to recipients. Any commercial […]