K&P Law Firm recently drafted a Supply Agreement between a Korean company and a Brazilian company. The Korean company agreed to manufacture and export specific devices to the Brazilian company, marking the transaction as an export contract.
Understanding the key points for these types of agreements is critical for successful international trade. The following highlights our focus when drafting such contracts:
1. **Accurate Party Representation:**
It's vital to clearly mention the full legal names, addresses, and contact information of all parties involved, including both the buyer and the seller. Keep in mind that legal names can often differ from the ones commonly used, and party representation varies if they are sole proprietorships or corporate entities.
2. **Price and Payment Terms:**
The agreed price, payment currency, and payment terms (including any milestone or installment payments) should be explicitly described. In international transactions, one must specify whether the local currency is being converted or if the foreign currency is the transaction's basis. Moreover, the payment method (such as telegraphic transfer or letter of credit) should also be confirmed.
3. **Quality Assurance and Inspection:**
The contract should detail the quality standards, inspection procedures, and acceptance criteria for the goods or services being supplied. Particularly for expensive machinery, the buyer might wish to inspect the products before shipment. Identifying whether a product defect arose during transport or manufacture can often be a complex issue.
4. **Warranties and Guarantees:**
Each party's guarantees or warranties regarding the goods or services must be clarified, outlining the duration and coverage scope. Often, for international exports, spare parts and consumables are shipped together to allow for local repairs.
5. **Governing Law:**
Determining the governing law is crucial as different countries have different regulations. Buyers and sellers often debate which law serves their interests best. The United Nations Convention on Contracts for the International Sale of Goods is frequently used, but the contract should also specify the supplementary governing law for areas not covered by this Convention.
6. **Dispute Resolution and Jurisdiction:**
Our firm frequently recommends arbitration for dispute resolution in international contracts. The country in which potential disputes will be resolved is also an important consideration due to possible enforcement difficulties with international rulings.
7. **Contract Language:**
In cases where a contract is written in multiple languages (e.g., English and Korean), there may be discrepancies in content. If such a situation arises, the contract should state which language will take precedence.
8. **Signature Method:**
Owing to the distance, international contracts are frequently exchanged via email rather than signed in person. Therefore, the contract should indicate that signatures on documents exchanged electronically are legally binding, mitigating potential disputes about their validity.
====
Tel. +82 32 864 8300
Email: info@kimnpark.com
Please Visit our Website:
'English Bolg' 카테고리의 다른 글
| Representing an Importer in a Bed Mattress Delivery Dispute (0) | 2023.08.09 |
|---|---|
| Successfully Resolving a Software Dispute (0) | 2023.07.25 |
| counsel on Incorporation of Wholly Owning Parent Company by All-inclusive Share Swap (0) | 2023.06.15 |
| We accept Apple Pay (0) | 2023.06.15 |
| Securing a Preliminary Injunction to Validate Shareholder Status (0) | 2023.05.30 |
