Types of contracts used in international economic relations. Major provisions of an international trade contract

Contract is an agreement between people which is intended to have the force of law.

Distribution Agreement

A distribution agreement is a type of business contract between a manufacturer and a supplier to distribute or sell items manufactured. The terms of a distribution agreement might include how an item will be advertised. A balanced distribution agreement generates money for both the manufacturer and the supplier.

Partnership Agreement

A partnership is a business alliance in which partners share with each other the profits or losses of a business. A written partnership agreement outlines the responsibilities of each partner and lists the important terms of the partnership contract. This agreement is referred to if there is any conflict between the partners at some time in the future.

Joint Venture

A joint venture occurs when two or more entities combine properties and expertise to carry out a business venture. They usually have a joint proprietary interest in the business and a joint right to the control and share of the profits and losses.

Key Contract Provisions:

• Payment Terms

• Obligations of the Parties

• Conditions

• Default and Breach

Contractual provisions should cover all the sides of the agreement, otherwise there may be a trail considered by supreme judicial body.