Legal issues in contracts for the international sale of goods.
1. The form of the contract
With the modern communication technology, many companies use email to communicate with customers in business. Due to the high evidentiary effect of written contracts, it is recommended that the parties pay special attention to using written contracts to determine the rights and obligations of both parties during the conclusion of contracts for the international sale of goods, and it is best to keep the original of the written contract until a certain period of time after the completion of the contract. Amendments to the contract should also be made in writing, rather than through telephone communication.
2. The name of the contracting party
The names of both parties to the contract should be written in full when they first appear, and should be consistent with the enterprise name on the business registration document and the content of the company seal affixed to the contract to avoid causing disputes. If a contract is signed and effective by a representative, it is even more important to accurately indicate the name of the signatory. It is best to also seal and confirm a copy of the signatory’s business registration document as an attachment to the contract. In addition, it is important to note the signing date and place in the contract.
3. Quality terms
The quality clause is an important clause in a contract for the sale of goods. It is the basis for the parties to lodge a claim. If the quality of the goods delivered by the seller is not in conformity with the contract, the buyer has the right to reject and lodge a claim. If the quality terms in the contract are not clear or agreed upon, the buyer may lose the basis for a claim. In practice, it is common for both parties to a contract to have disputes over the quality and specifications of the goods, so it is very important to make clear, specific and operational agreements on the specifications, models, colors, materials, etc. of the goods in the quality clauses.
The formulation of quality clauses should be scientific, accurate, and should be implement. “superior materials”, and “high-quality products” etc which are not suitable for use because it is impossible to determine whether the goods delivered by the seller violate the contract provisions. For some equipment, if it is difficult to comment on in the contract due to the complex technical specifications, they can be listed in the annex and indicated as an integral part of the contract. Contracts where delivery is based on samples, it is important to pay attention to the selection of samples, to properly seal the samples, rather than simply taking a product out as a quality standard for the goods.
4. The arbitration institution
Arbitration is efficient way to resolve disputes over international sales contracts. An arbitration agreement is an agreement whereby the parties to a contract voluntarily submit their disputes to an arbitration institution for arbitration. It is a prerequisite for the parties to submit their disputes to an arbitration institution for arbitration. The arbitration agreement needs to be clearly agreed upon. If it is not sufficient to only agree on the submission of disputes arising from the performance of the contract for arbitration, it is necessary to specify the specific arbitration institution to arbitrate. It is best to also effectively agree on the arbitration rules and laws applicable to arbitration. For the selection of arbitration institution and applicable law, it is necessary to combine the actual transaction conditions of both parties to the contract and select the most advantageous method for dispute resolution and arbitration award execution.