Sixteen

International Business Contracts

The contents involved in an international contract can be summed up as follows:

☺Title and Reference☺Preamble ☺Name of Commodity☺Quality Clause☺Quantity Clause☺Price Clause ☺Packing Clause

Section One Basic Concept of Contract

☺Delivery Clause☺Payment Clause☺Insurance Clause ☺Inspection Clause ☺Claim Clause☺Arbitration Clause☺Force Majeure ☺Breach and Cancellation of Contract Clause☺Miscellaneous Clause

A contract properly includes: 1) the full name and address of the buyer and the

seller; 2) the commodities involved; 3) all the terms and conditions agreed upon; 4)indication of the number of original copies of the contract, the language used, the term of validity and possible extension of the contract. In international trade, export and import contracts vary in both names and forms. The names that often appear are contract, confirmation, agreement and memorandum.

International business contract is between the natural or legal persons for certain business purposes according to a certain legal formalities reached. It provides mutual rights and obligations of the parties concerned and its lease is a legally binding the parties.

Section Two

Main Features of International Business Contract

According to China’s “Contract Law”, a contract, whether or not there are domestic and foreign factors, can be divided into two types of contracts: domestic contracts and foreign-related contracts.

Section Three

Categories of International Business Contract

Compared with domestic contracts, the foreign-related contracts mainly have the following two key features:

1) The contracts with foreign factors. 2) China party in the contract is usually our corpor

ate clients, or other organization. Notes:1 termination 终止2 China party 我方当事人3 provisions 分则

4 implementation 发展5 Sino-foreign joint venture contract中外合资经营企业合同

6 foreign leasing contracts 涉外租赁合同7 foreign loan contracts 涉外借款合同8 foreign forwarders contracts 涉外承揽合同9 foreign custody and commissioned contracts涉外保管合同和涉外委托合同

10 foreign grant contracts 涉外赠与合同

1 The use of words

（ 1） Often use of formal or legal terms

（ 2） The prefix of “here”, “there”, “where” is often used.

（ 3）“ Shall” and “will” or “should” are often used to mean strengthening tone.

Section Four

Language Feactures in the Contracts

2 The expressions of words

（ 1） To be rigorous and clear

（ 2） Active voice is more used than passive voice.

（ 3） Present tense is used instead of future tense even though many article stipulations are to be set forth for future matters.

（ 4） Direct expressions are used more than indirect expressions.

（ 5） Try to use verbs and avoid using “verb+noun+preposition” structure.

1 Purchase Note P281

2 Consignment Contract P284

Section Six

Useful Words & Expressions P285

Section Seven Useful Sentences P289

Section Eight Exercises P293

Section Five Sample Contracts