understanding and creating international sales contracts is a necessary and important part of a successful exporter’s toolkit. an international sales contract is an agreement between a buyer and a seller that identifies the parties in the transaction, the goods or services being sold, the terms and conditions of the sale, and the price to be paid. a sales contract can be a verbal agreement between two parties, a collection of documents such as a purchase order and an order acknowledgement exchanged between two parties, or a formal, written agreement signed by the buyer and the seller. the type of agreement your company uses may depend on the value of the sale, the nature of the goods, and the complexity of the terms of the agreement. a written contract forces both the buyer and seller to think about the details of the sale up front.
a written contract also reminds both parties of the terms of the sale. contracts should be unambiguous, and written in such a way that even those who are not involved in the world of commercial exporting would understand the terms of the agreement. contracts are typically created via a process that may include an offer, acceptance, rejection and counteroffer. within both the uniform commercial code (ucc) and the united nations convention on contracts for international sale of goods (cisg), there are variations on whether or not a contract exists and when or if it is accepted. the following is a partial list of recommended terms and conditions buyers should have in their purchase orders and sellers should have in their acceptance/confirmation documents. our free webinar, creating an international sales contract, is a great starting point for anyone in your company who engages in international trade, from purchasing agents to sales reps, logistics personnel, and even your company’s legal team.
you can structure your business as one of the following: distributor: a distributor is an independent company that purchases products from a supplier, takes title to them, and resells them. sales agent: a sales agent does not purchase goods from the supplier. instead, the agent finds customers and solicits offers to purchase the product from the supplier. territory and exclusivity (if possible): the agreement should specify the countries in which you’ll be allowed to sell the goods. minimum purchase quantities: in most distributor agreements, the supplier expects a commitment for a significant quantity to be purchased. before a distributor provides an exclusive arrangement in a territory, a provision for minimum purchase quantities is included in the distributor agreement.
effective date: the agreement should specify the date it will become effective, as well as the expected duration of the agreement and the procedures for modifying, extending, or terminating the agreement. use of trade names, trademarks, and copyrights: the agreement needs to clarify when and how trade names, trademarks, and copyrights may be used and who will have the responsibility of registering them in the foreign country. commissions: a sales agent is paid a commission for her efforts in soliciting orders that are accepted by the supplier. prices: because there’s no sale directly between the supplier and the agent, the supplier usually requires that the agent quote only agreed-upon prices. he is president of cade international, which provides consulting and training in international business including importing, exporting, licensing, and foreign investment. dummies has always stood for taking on complex concepts and making them easy to understand.
“agreement” means this international purchase agreement and all consistent terms contained in any product order which is accepted by seller in writing. an international sales contract is an agreement between a buyer and a seller that identifies the parties in the transaction, the goods being this model of international sale contract is designed for the international sale of different types of products: raw materials, manufacturing parts,, international purchase agreement template, international purchase agreement template, international sale of goods contract pdf, international sales contract sample doc, international sales contract terms and conditions.
summary: the icc model international sale contract is developed for sales of manufactured goods intended for resale, where the buyer is not a consumer and the cisg, which deals with both contract formation and the obligations of the parties, carefully balances the interests of the buyer and seller, and provides a sales agent: a sales agent does not purchase goods from the supplier. if you’re set up as a sales agent, provisions of the sale agreement should include, international sales contract notes, types of international sales contracts, international sale contract meaning, international trade contract sample, formation of international sales contract, what is international sales, elements of international sales contract, international distribution contract, export sales contract pdf, trade agreement sample.
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