International sales contracts: examples of use

The process of selling and purchasing goods can tend to be a series of events that could leave someone with less than they bargained for. With scammers and other people out there without the best interest of the customer in mind, a solid form of legally identifying the buying and selling process is very much needed. That is where an international sales contract comes in.

 

What is an international sales contract?

An international sales contract is an agreement between both parties for the sale of any goods. The contract itself could be verbal or written, so long as it contains at the bare minimum the seller and buyer, amount and what the product is, estimated time of delivery, and price of the goods for payment. While the agreement can be verbal, it is recommended to use a written one as it can be referenced back and used in case of any liability or issue with the sale of goods.

 

The process of creating an international sales contract

 

For any type of negotiation involving international sales of goods, the body of law used is the UN Convention on Contracts for the International Sale of Goods (CISG), or more formally known as the Vienna Convention. In addition, this process usually does not include both parties gathering to sign the piece of paper and coming to verbal agreements. Instead, it is usually through the sending of offers, counter offers, or rejections. Usually international sales contracts include the basics mentioned earlier, but more precise (and recommended) contracts also include method of shipment and distribution, warranties, as well as terms and conditions to be disputed between the buyer and seller respectively. Having these kinds of specifications make the process easier for both parties as well as do a great job of assuring that both get the terms they need and can agree to compromise wherever necessary.

 

Example of international sales contract

 

This is a great, public example for how to create the before mentioned international sales contract, provided by globalnegotiator.com. This template is intended for the use of anyone trying to create a contract from scratch and is the perfect tool for knowing what goes into the contract as well as how to create ones in the future. Let's say you want to sell a company called LavaDyne a shipment of five high quality washing machines in order for them to distribute however they see fit. This template would accurately let you include all of the terms and conditions needed for negotiations like pricing, estimated time of delivery, location of delivery, etc. As you can see, it is a very comprehensive document that is very user friendly. It is just a matter of filling it out with all the specifications needed for the sale to go through  without any issues on either side.

 

It cannot be stressed enough just how important a written, traceable document is needed for that kind of negotiation. Without it, it all becomes a matter of hearsay, and could prove to be a very tricky legal situation for both or however many parties are involved. Fraudulent companies exist all over the place and they will do anything to be able to achieve the status that they feel they want. With a document like this, it keeps the entire negotiation secure and filed in a way that can easily be accessed, read, and interpreted in any form of law or potential legal issues. Plus, it keeps a history of negotiations for the companies as a whole, which can be useful when looking for potential buyers or sellers within whatever market needed.

 

We recommend that you continue updating yourself on the latest trends and acquire the right knowledge about international sales contracts. We invite you to take a look at our Master's in International Trade & Business [MITB].