The contract of international sale and purchase, The...

8.3. Contract of international sale and purchase

8.3.1. The concept of the contract of international sale

The contract of international sale (contract) is a contract that fixes in writing commercial relations between subjects of different citizenship and determines the rights and obligations of the parties.

For the contract of international sale, the following characteristics are typical:

o one of the counterparties to the transaction is a legal entity or an individual of a foreign state (non-resident) or a US resident who has a commercial organization abroad;

o the goods are in the territory of a foreign state;

o in the performance of the contract, the goods, as a rule, cross the customs border of one or several foreign states.

Usually the contract contains an introductory part, requisites of the parties (legal address and bank details) and the following basic conditions:

o the object and the object of delivery (name and quantity of the goods);

o ways to determine the quality and quantity of goods;

o time and place of delivery;

o basic terms of delivery;

o the price of the goods and the total cost of delivery;

o Terms of payment;

o the order of delivery of goods;

o conditions of carriage;

o terms about guarantees and sanctions;

o dispute resolution procedure;

o circumstances of exemption from liability (force majeure).

The contract may also include provisions common to the obligations of the seller and the buyer:

o the procedure for calculating losses and their reimbursement for possible breach of obligations of one of the parties;

o penalties for late payment;

o transport and currency risks;

o Exemption procedures;

o the right to suspend performance of obligations;

o product insurance;

o the procedure for terminating the contract.

In international trade practice, typical contract forms are widely used by large exporters and importers and their associations. The most common form of a typical contract consists of two parts - agreed and unified.

The contract of international sale in accordance with the US Civil Code is in simple writing. It should, however, be borne in mind that the 1980 Vienna Convention on Contracts for the International Sale of Goods does not require the conclusion of a contract in writing. It can be proved by any means, including testimony. The USSR ratified the Vienna Convention with the reservation that any provision of Art. 11, art. 29 or part II of the Convention, which allows the contract of sale, its modification or termination by agreement of the parties, or an offer, acceptance or any other expression of intention, be made not in writing but in any other form, if at least one of the parties has its own commercial enterprise in the USSR (Decree of the Supreme Council of the USSR of May 23, 1990 No. 1511-1). Since December 24, 1991 the United States continues membership of the former USSR in the United Nations and is fully responsible for all rights and obligations of the USSR under the UN Charter and multilateral treaties. Therefore, a foreign trade deal made by a US resident is subject to United States law.

The process of concluding a contract (including international sales) is governed by the norms of the US Civil Code (articles 432-444). The legal instruments of this process are offer and acceptance. When concluding and executing an international sales contract, it is necessary to observe the general rules of law applicable to property turnover (the Civil Code of the United States), and special norms of United States legislation (customs, currency, tax, foreign trade, ).

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