Contract

A written contract of sale is made out in the form of a document signed both by the Buyers and the Sellers. When there is no necessity of introducing special terms and conditions into the contract of sale, association use standard form of contracts containing the following clauses (articles).

1. Naming (definition) of the Parties.

2. Subject of the contract and volume of delivery.

3. Price and the total value (amount) of the contract (including terms of delivery)

4. Time (date) of delivery.

5. Terms of payment.

6. Transportation on (carriage) of goods.

7. The Seller’s guarantees (the quality of goods).

8. Sanctions and compensation for damage.

9. Insurance.

10. Force majeure circumstances.

11. Arbitration.

12. General provisions.

Also there may be standard General Conditions which form an integral part of the contract and are either printed on the reverse side of the contract or at the foot of the face of the contract or attached to it.

In the case of a contract for machinery and equipment there may be other clauses: technical conditions, test and inspection conditions, requirements to technical documentation, supervision of putting the machinery into operation and sending specialists for the purpose of training of the Buyers’ specialists, the Seller’ obligations for technical servicing and like. These clauses may be included in the contract itself or in appendices to the contract which are an integral part of it.

When detailed special terms and conditions are introduced into the contract or the agreement, it is customary to draw up an individual contract or agreement in each particular case (e.g. a turn key contract). Sometimes organisations use standard forms of contract worked out by the biggest federations and association of merchants and importers, by exchanges, Chambers of Commerce, and like for use in a particular trade. These standard forms of contracts, for example, are used in grain trade, sugar, cotton and other trades.

According to the purpose and contents contracts can cover goods, services, patents, licences, technology and so on.