6. The key elements in a contract of international sale of goods
There are some critical aspects that need to be considered by the parties in the international sale of goods.
a. Capacity of the parties
Capacity is the legal ability of a person to enter a contract. If the buyer is a person, he/she should not be a minor, the mentality disordered, and the intoxicated person. However, if the buyer is a corporation, the person who has authority to sign contracts is usually specified in the constitution of company. Generally, Board of Director has capacity to enter a contract. The capacity of the parties is a critical element in order to make a contract enforceable.
b. Description of the goods
Due to the facts, the object is a pair of shoes, which …show more content…
In the currency terms, the seller must choose either a currency that is relatively stable such as USD or the seller’s own currency (AUD) since the manufacture of BDS located in the Australia.
h. Terms of delivery
The terms of delivery are important in the international trade transactions because these terms will determine the time and place when the risk of loss and the title of the goods transferred from the seller to the buyer. According to the Incoterms 2010, terms of delivery is divided into two groups, multimodal and maritime transport. As a seller, it can be suggested to choose terms of delivery, which provide less risk, cost, and effort. As a result, there are four terms of delivery that are suitable for the seller, such as:
1. EXW (Ex works)
This multimodal transport’s term requires BDS as a seller just to deliver the goods at their own business place and the buyer should arrange all transportations to pick up the goods. Moreover, EXW provides the seller with the least possible risk, cost and responsibility. Therefore, this term is the best option for the seller.
2. FCA (Free Carrier
There are some critical aspects that need to be considered by the parties in the international sale of goods.
a. Capacity of the parties
Capacity is the legal ability of a person to enter a contract. If the buyer is a person, he/she should not be a minor, the mentality disordered, and the intoxicated person. However, if the buyer is a corporation, the person who has authority to sign contracts is usually specified in the constitution of company. Generally, Board of Director has capacity to enter a contract. The capacity of the parties is a critical element in order to make a contract enforceable.
b. Description of the goods
Due to the facts, the object is a pair of shoes, which …show more content…
In the currency terms, the seller must choose either a currency that is relatively stable such as USD or the seller’s own currency (AUD) since the manufacture of BDS located in the Australia.
h. Terms of delivery
The terms of delivery are important in the international trade transactions because these terms will determine the time and place when the risk of loss and the title of the goods transferred from the seller to the buyer. According to the Incoterms 2010, terms of delivery is divided into two groups, multimodal and maritime transport. As a seller, it can be suggested to choose terms of delivery, which provide less risk, cost, and effort. As a result, there are four terms of delivery that are suitable for the seller, such as:
1. EXW (Ex works)
This multimodal transport’s term requires BDS as a seller just to deliver the goods at their own business place and the buyer should arrange all transportations to pick up the goods. Moreover, EXW provides the seller with the least possible risk, cost and responsibility. Therefore, this term is the best option for the seller.
2. FCA (Free Carrier