1、Chapter 12International TradeContractsCISGn na tool to help in drafting international tradea tool to help in drafting international tradecontractscontractsn nThe applicable lawThe applicable lawn nThis convention establishes uniform legal rules to This convention establishes uniform legal rules to g
2、overn the formation of international sales contracts and govern the formation of international sales contracts and the rights and obligations of the buyer and seller.the rights and obligations of the buyer and seller.n nFacilitate and stimulate international trade.Facilitate and stimulate internatio
3、nal trade.n nFind the familiar and very helpful solutions to problems Find the familiar and very helpful solutions to problems and uncertainties arising in their international sales and uncertainties arising in their international sales contracts contracts International Laws and Customs on internati
4、onal sales contracts CISGUnited Nations Convention on Contracts for the International Sales of Goods-a treaty offering a uniform international sales law that is accepted by countries that account for two-thirds of all world trade PICCFormation of the Contract for the International Sale of Goodsn nEn
5、quiry-regarded as an invitation to offer-initiate a negotiation for a potential transaction-make conditional suggestion/find out certain terms-a sales opportunityn nOffer-a proposal sufficiently definite for concluding a contract addressed to one or more specific persons,indicating the intention of
6、the offeror to be bound in case of acceptanceFirm offerNon-firm offer:subject to our final confirmation without engagementn nCounter-offer-a reply to an offeror which contains additions,limitations or other modifications which do materially alter the terms of the offer.-a rejection to an offer-a rep
7、ly to an offer which contains additional or different terms which do not materially alter the terms of the offer,do not constitute a counter-offer but an acceptancen nAcceptance-a statement made by or other conduct of the offeree indicating assent to an offer-within the period of validity of the off
8、er-After it becomes effective,an acceptance could neither be withdrawn nor revoked.The reason is that the contract is concluded when the acceptance becomes effective Important Stipulations in CISGn nObligations of the seller and the buyerObligations of the seller and the buyern nRemedies for breach
9、of contractRemedies for breach of contract-only one of the parties commit a fundamental breach of-only one of the parties commit a fundamental breach of contract,the contract may be declared avoided by the contract,the contract may be declared avoided by the other partyother party-A declaration of a
10、voidance of the contract is effective-A declaration of avoidance of the contract is effective only if made by notice to the party in breachonly if made by notice to the party in breachn nThe form of a contract for international sales of goodsThe form of a contract for international sales of goodsMaj
11、or Clauses in the Contract for International Sale of Goodsn nQuality-the intrinsic quality and outside form or shape of the commodity-sale by sample:-sale by description:International Standards OrganizationInternational Organization for Standardization n nQuality clause in contract-the clause in con
12、tract which stipulates the requirement of the quality of the goods-the quality of the goods delivered to be about equal to the sample-quality tolerance-quality tolerance:a flexible quality range stipulated by allowing a little more or less in the indicies which represent the quality.n nQuantityThe d
13、ifferent systems of metrical units in the world-net weight-gross weight:plus the weight of the package-conditioned/theoretical/legal weightQuantlty clause in contract:more or less clausen nPacking-transport packing/outer packing protect the commodity from damages-sales packing/inner packing sales pr
14、omotion-shipping mark:the English abbreviation of the receiver/reference number/destination/package number-neutral packing:the infringement upon IPR of a third partyn nPrice-take precautions against exchange rate risks currency for account/currency used for calculation currency for payment/currency
15、used for settlement-an exchange proviso clause-price clause:currency for account/unit price figure/metrical system/price term commission discountOther International Trade Contractsn nAgency-an agent act on behalf of the principal depending on the agency agreement between two partiesAppointment/commo
16、dity/territory/price and payment/the rights and obligations of the agent/the rights and obligations of the principal/commissionCompensation trade n nOne party agrees tosupply technology and/or equipment that enables the other party to produce goods with which the price of the supplied technology and
17、/or equipment is repaid.n nTransactions n nPayment-usance letter of credit/pay by installments/in favor of the supplier-sight letter of credit in favor of the supplied partyProcessing traden nSpecial trade arrangements-processing the materials imported and exporting the finished productsprocessing o
18、f the materials supplied by client/assembling of parts supplied by client-the damage rate of parts and materialslicensen nLicensor/licenseen nThe right to use the technology and the ownership to the technology n nSimple license/sole license/exclusive license/sub-license/cross licensen nLicense fee may vary with the scope of license.
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