A
contract is a single document, in which
the rights and obligations of the exporter
and the importer are stipulated. International
Contract shows that the majority of transactions
are carried out without signing a contract.
However, it is strongly recommended to establish
an international contract of sale for international
transactions.
One
can avoid doubts and misunderstandings concerning
what has been agreed during the negotiation
of terms if they are set down in writing.
In certain cases a verbal agreement is legally
binding, for example, when an exporter makes
a sale at an international fair.
Most
international contract do not use a formal
contract in practice. However, clauses in
the commercial invoice and the incorporation
of an appropriate Incoterm in the export
price as well as national legislation will
nevertheless imply certain obligations on
the parties. In any case, we recommend using
a formal contract.
