Payment terms and conditions

Payment Terms and Conditions: (check one below)

Payment shall be by

- Irrevocable Transferable Revolving Documentary Letter of Credit OR

- Irrevocable, Transferable, Revolving Standby Letter of Credit,

- Wire transfer of funds in advance (T/T) which shall be for __ month’s value and employ the language in Exhibit A attached hereto.

The Financial Instrument shall be payable by SWIFT transfer payment by the issuing bank upon presentation by Seller (or Seller’s bank) the required documents (“Seller Documentation”) set forth in the Financial Instrument, which may include those which are outlined in Section 8.8 hereof. In the event that payment shall be made by T/T wire funds transfer, such payment shall be initiated by Buyer’s bank within three (3) Business Days from loading of Product at Port of Loading.

8.1. Buyer shall pay for all bank charges related to the issuance and confirmation of the Financial Instrument. Seller shall pay for all Bank charges related to its negotiation of the Financial Instrument.

8.2. The financial instrument (s) shall be subject to the Uniform Rules and Practice for Documentary Letter of Credits (UCP 500) issued by ICC.

8.3. Documents Required For Payment. Unless otherwise provided in Appendix 8.8.1, the Seller’s bank shall present all of the following documentation (“Seller Documentation”) to the Buyer’s bank which issued the Financial Instrument. Upon presentation of said Seller Documentation via e-mail or telefax, the Financial Instrument shall be payable (“ Payment ”) by SWIFT transfer payment to Seller.

8.8.1. Commercial Invoices: three (3) original commercial invoices and three (3) copies, issued and signed by Seller, showing Contract number, description of Product, Unit Price, price of the Shipment, gross/net weights of the Product;

8.8.2. On Board Ocean Bill of Lading: a full set (3 originals/3 copies) clean On Board Ocean Bill of Lading consigned to Buyer, marked “freight prepaid”;

8.8.3. SGS Quality and Weight Certificates: issued at Port of Loading, two (2) original and four (4) copies, indicating a Passing Inspection;

8.8.4. Certificate of Origin: issued and endorsed by the Chamber of Commerce and Industry of the Country of Origin or the Department of Trade or Ministry (one (1) original and four (4) copies);

8.8.5. Charter Party Agreement: photostatic copy, duly signed covering the Shipment;

8.8.6. Insurance Certificate: in negotiable form for 110% of the price of the Shipment covering all risks of loss to the Products including, without limitation, war risks, and insuring the Seller and the Buyer from the risks of loss, as their interests may appear; and

8.8.7. Packing List: one (1) original and two (2) copies of packing list showing: (I) gross / net weight; and (ii) the number of Ocean Bill of Lading.

COSTS AND LIABILITY

10.1. The Delivery is CIF ASWP (cost insurance and freight paid by Seller to the Port of Destination). Notwithstanding the foregoing, Buyer shall be responsible for certain charges outlined in this Contract including the Port of Destination demurrage charges, tariffs, and import fees. Buyer shall pay for all extension costs and other costs including, without limitation, costs relating to the extension of the Financial Instrument(s) which result from (i) the Buyer’s delay of the Shipment or offloading of the Vessels at the Port of Destination; (ii) Buyer’s failure to unload the Vessels in a timely manner on or before expiration of the period of time stated elsewhere in this Contract; or (iii) other timelines to which the Buyer does not adhere which is outlined in this Contract.

10.2. The risk of loss or damage to the Product and any additional charges shall pass from the Seller to the Buyer at the earlier of (i) after the transfer of the Product at the Port of Destination over the hand-rail to the Vessel or (ii) cleared funds have been received by Seller from Buyer. In addition to the foregoing, in the event of a loss at sea or damage to the Product, Buyer’s sole remedy shall be to pursue the Insurer of said Product.

10.3. The quantity of Product stated in the B/L and confirmed by the SGS certificate, or WR (as outlined herein) shall be conclusive confirmation of the quantity of Product.

10.4. General terms and conditions of loading/discharging, loading rate/discharging rate shall be performed in compliance with the rules and norms of the Port of Loading and the Port of Destination and in accordance with INCOTERMS 2000. Any demurrage incurred at the Port of Loading shall be at Seller’s expense. Any demurrage incurred after the free unloading period at the Port of Destination shall be at Buyer’s expense. It is agreed that demurrage be settled by the Vessel’s master and Buyer’s shipping agent within five (5) days from the receipt of the Vessel master’s invoice. Should the Vessel be required to shift from one berth for another port of discharge, then the time used shifting shall be paid by the Buyer. In the event lighting is required at the port of discharge, said related expenses shall be paid by the Buyer. Demurrage charges shall be calculated at a rate of Fifty U.S. cents per MT set forth in the SGS certificate for each WWD beyond the time set forth in the Charter Party Agreement.

10.5. All supervision, fees, taxes, levies, and port dues imposed by the Country of Destination, having any effect on this Contract are for Buyer’s account and his sole responsibility. All supervision, fees, taxes, levies, and port dues imposed by the Port of Loading, having any effect on this Contract are for the Seller’s account and its sole responsibility.

10.6. Permissions, Licenses. The Buyer represents and warrants that it has all of the licenses and permits necessary and required by the Destination Country (“Import Requirements”) to import the Product into the Destination Country including, without limitation, regulatory authority for the Vessel to dock within the Destination Country, to offload the Product, store the Product, transfer the Product, sell and otherwise transfer the Product within the Destination Country. Seller hereby disclaims, and Buyer assumes responsibility for, any and all liability relating to said Import Requirements including, without limitation, any regulations relating to dumping, spillage, environmental or other international regulations or treaties. Buyer shall provide to Seller in writing an un-modified copy of all documentation relating to the Buyer’s compliance with its country’s Import Requirements prior to the Shipment of the Product.

10.7. Buyer agrees to indemnify, defend and hold harmless Seller and its parents, subsidiaries, directors, officers, shareholders, members, employees, agents and affiliates from any legal claims made by the U.S. government or any other governmental agency of any country that prohibits this transaction.

DEFAULT

12.1. Except as otherwise referenced herein including, without limitation, a force majeure event, should the Seller fail to perform on time as stipulated in this Contract, the Seller shall be granted an opportunity to cure said default for a period of forty-five (45) days (“Cure Period”). If said default cannot be cured within the Cure Period, Buyer shall be entitled to terminate this Contract with ten (10) Business Days prior written notice to Seller.

12.2. Force Majeure. The obligations of each Party hereunder shall be excused during any period of delay caused by matters such as strikes, acts of God, shortages of raw material or power, governmental actions or compliance with governmental requirements, whether voluntary or pursuant to order, or any other matter beyond the reasonable efforts of such Party to control.

12.2.1. Neither Party shall be held responsible in damage or otherwise for any failure of performance of this Contract other than the payment of the price for Shipments already delivered or other payments required hereunder corresponding to acts which have already been performed so long as the Buyer or the Seller notify one another immediately by facsimile and delivery to the Seller/Buyer by registered mail or courier service within seven (7) days of the force majeure event. Said notice from a party shall serve as evidence of a force majeure event. If the force majeure event is called into question by a party receiving a force majeure event notice, a certificate issued by the government authorities or chamber of commerce shall serve as presumptive evidence of the force majeure event.

12.2.2. Should the delay caused by a force majeure event be greater than one (1) month, the Parties shall attempt to agree upon measures which shall permit this Contract to continue with the balance of the Shipments or the Contract shall be extended for the period of time which corresponds with said force majeure event interruption. Should such an agreement not be reached within thirty (30) days from the date of the commencement of the force majeure event, either Party may terminate this Contract with ten (10) business days prior written notice.

CONTRACT TERMINATION.

Except for a force majeure event, as outlined herein, and after the Cure Period (except in the event of non-payment, as described below), either Party may terminate this Contract should the other Party materially fail to perform under the terms of this Contract. In the event of non-payment of any monies due from Buyer to Seller pursuant to this Contract for Product, this Contract may be terminated immediately by Seller.

LAW.

This Contract shall in all aspects be governed by, interpreted, and construed and enforced in accordance with, the laws of the State of Florida, in the United States without giving effect to any choice of law or conflict of law rules or provisions that would cause the application of the law of any jurisdiction other than the State of Florida. The Parties consent to the in personam jurisdiction of the Federal and State Courts located in Broward County, Florida.

ASSIGNMENT.

This Contract is not assignable or transferable by either Party, without the prior written consent of the other Party. Notwithstanding the foregoing, Seller may assign this Contract to any of its subsidiaries, parents, affiliates or suppliers, without the prior written consent of Buyer. Any assignee or legal successor to either Party shall assume all obligations and benefits of this Contract.

NO IMPLIED WAIVERS.

No waiver of any provision of this Contract shall be effective unless it is in writing, signed by the Party against whom it is asserted, and any such written waiver shall only be applicable to the specific instance to which is related and shall not be deemed to be a continuing or further waiver.

SEVERABILITY.

Whenever possible, each provision of this Contract shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Contract is held to be prohibited or invalid under applicable law in any jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating any other provision of this Contract.

ENTIRE CONTRACT.

This Contract comprises the entire understanding between the Parties. The Appendices are a part hereof and incorporated herein. Where there is a conflict between a term in an appendix and a term in this or preceding paragraphs, the term in the appendix shall control.

IN WITNESS WHEREOF, the Parties hereto set their hands and are witnessed with seals upon this Contract as of the Effective Date.

 

Buyer: By: __________________________ Date: _______________________

Seller: By: __________________________ Date: _______________________

(Based on: current contracts)

ACTIVE VOCABULARY

airway bill amendment at his own cost breach of contract business activities bill of lading Case Law cash-memo Chamber of Commerce Common Law     consideration of contract consignee   contract contract capacity   contract content Contract Law contract provisions disputes and discrepancies enforceable agreement force majeure   formal contract formation (execution) of contractfranchise agreement freedom of contract government (state) regulation hereinafter referred to as indelible paint injured party insurance policy integral part of the Contract international commercial arbitration invoice labor contract (employment agreement) lay time legal consideration legal foundation litigation coasts miscellaneous on behalf of … packing list payment order purchase agreement (contract) sales contract shipment of the “Goods” subject of the contract supply (delivery) contract contract terms and conditions to cancel contract to conduct dealings to enter into agreements to file suit (against …) to go to court to violate the law violation of valid contract way bill

грузовая авианакладная поправка (изменение) к контракту за свой счет нарушение договора виды предпринимательской деятельности коносамент, транспортная накладная прецедентное право торговый чек торговая палата 1) общее право (как прецедентное право в отличие от статутного права); 2) общее право (в отличие от права справедливости); 3) общее право, англо-саксонское право (в отличие от континентального права); 4) (обычно common law of England) общее право Англии (как совокупность прецедентного права) рассмотрение контракта, встречное удовлетворение 1) грузополучатель; адресат (груза); 2) консигнатор (лицо, которому товар послан на консигнацию); 3) комиссионер контракт, договор, соглашение 1) право-дееспособность; 2) объем полномочий каждой из сторон контракта содержание контракта контрактное право положения договора споры и разногласия (в контракте)   действующий (принудительный) договор форс мажор (непреодолимые обстоятельства, особенно природные катаклизмы, которые послужили причиной невыполнения контракта; при таких обстоятельствах исполнитель не несет ответственности за невыполнение) оформленный договор; формальный (формализованный) договор исполнение (составление) контракта договор франчайзинга   право заключать договоры государственное регулирование; постановление правительства   в дальнейшем именуемый(я) как … несмываемая краска потерпевшая сторона страховой полис неотъемлемая часть контракта   международный коммерческий арбитраж   счет (счет-фактура); коммерческий инвойс трудовой договор     сталийное время юридически действительное встречное удовлетворение юридическая база судебные издержки прочее (прочие положения контракта) от лица (от имени) … упаковочный лист, упаковочный реестр платежное поручение договор покупки   договор продажи отгрузка; партия товаров к отгрузке предмет контракта договор поставки   условия контракта   аннулировать контракт (договор) проводить (осуществлять) сделки заключать договора (входить в договорные обязательства) выставлять (подавать) судебный иск обратиться в суд нарушать закон (законодательство) нарушение действующего контракта   накладная, дорожная накладная

IV. Translate the following text from Russian into English and be ready for its discussion on the basis of active vocabulary, key terms quiz, review and discussion questions.

ОСНОВНЫЕ ПОНЯТИЯ КОНТРАКТНОГО ПРАВА

О теории контрактов

В юридической науке существует две основных точки зрения на природу контрактов:

1. “Will theory”. Она возникла еще в XVII-XVIII вв., когда формировались основы частного права. Will theory предполагает, что контрактное право есть набор правил, упрощающих для индивидов возможность вступать в сделки по собственному выбору и на собственных условиях. Согласно этой теории, первично желание двух индивидовзаключить между собой сделку, их воля выше закона. Это типичное прецедентное англо-саксонское право, основанное на том, что суды лишь помогают совершению сделок между участниками, но не регулируют их насильственно. Однако постепенно выяснилось, что в целом ряде сделок при этом нарушается реальное равенство участников. Но государство не имеет права оставлять без своего контроля и внимания сделки между глобальной корпорацией и какой-нибудь бабушкой, и поэтому в 1950-60-ых годах will theory практически была замещена в юридической науке “promise theory”.

2. “Promise theory”. Логика этой теории качественно отлична от логики will theory. Promise theory уже не предполагает, что участники сделки выше закона. Она фокусируется на их обязательствах (обещаниях). С точки зрения экономиста, это очень интересное явление, ибо в promise theory юристы пришли к тому же пониманию сущности контракта, что и экономисты, а именно: контракт устанавливает определенные ориентиры для нашего поведения, которым мы будем следовать; заключив контракт, мы можем надеяться, что сектор, освещенный данным контрактом, нам ясен. В силу этого promise theory, главным образом, фокусируется над обязательствами, уже урегулированных законом (находящихся в рамках закона). Есть еще одна интерпретация: люди не накладывают на себя обязательств, которые не существовали ранее, т.е. не создают новых обязательств. Данный подход предполагает, что законодательство первично и что мы не можем выходить за его рамки при заключении контрактов. Как только закон принят, возникают рамки определенных обязательств.

Основные понятия контрактного права

Privacy – причастность. Данное понятие используется в виде “with privacy” и “without privacy”, что означает «с ведома собственника» и «без ведома собственника». Это центральный элемент контрактного права, устанавливающий, что ты имеешь право действовать либо по согласованию с другой стороной, либо автономно.

Formation of contract – составление контракта. Это достаточно дорогостоящая процедура, и ей следует уделять внимание.

Contract content – содержание контракта.

Capacity – объем полномочий каждой из сторон. У каждой стороны есть определенный объем полномочий в рамках контракта. Например, в трудовом договоре, объем полномочий нанимателя: отдавать распоряжения рабочим в рамках 8-часового рабочего дня и установленного набора функций, которые эти рабочие должны выполнять. А объем полномочий рабочего: не делать ничего свыше записанного в контракте.

Контракт не обязательно должен быть записан, Существует множество стандартных контрактов, которые заключаются при свидетелях передачи того или иного продукта на основании расписок или заказов. При этом есть бланк заказа, есть платежное поручение, а никакого контракта нет.

Какими документами регламентируются наши взаимоотношения с продавцом при покупке компьютера в супермаркете? Вы оплачиваете покупку, и вам вместе с компьютером дают какие-то документы о его принадлежности вам. А как вы будете действовать, если, например, вы оплатили компьютер, а вам его не дали.? Товарный чек здесь не поможет – он лишь подтверждает, что вы заплатили фирме «рога и копыта» за компьютер 500$. Вам придется обратиться с иском либо в арбитражный, либо в обычный суд, и уже закон будет регулировать ваши взаимоотношения с этой фирмой (в законе такие случаи предусмотрены). Т.е. закон сокращает нам время на прописывание контракта, позволяя при этом использовать упрощенную форму, когда контракт элементарен.

(Based on: Cheeseman H. Business Law)

V. Key Terms Quiz