8 points of a good contract for peace of mind (deal is deal if…)

There are many issues that the parties should consider before entering into a contract. Legal points are the most important issues in setting up and concluding any type of contract. The way the contract is drawn up can change the fate of people, companies and businesses. In order to draw up a standard contract, parties must be aware of legal knowledge in addition to the information and details. The contract should be drawn up to the needs of each business. It is necessary to refer to an expert in order to avoid losses and overspending in the future. There are some prominent principles in drawing up contracts which we discuss in this article.

1.The price must be definite.

Try to finalize the price in the negotiations. This will avoid any Welsh and defraud in business.

2. Estimated time of arrival. 

It is necessary to know the arrival time period, so that one can plan for its upcoming procedures. Since some goods must be purchased and released in the market in special occasions.

3. Place of delivery and INCOTERMS.

In business, parties should know about their responsibilities and transfer of risk, as well as the place where the cargo is submitted. 

4. The quantity. 

As the seller, one must be aware of the supply power. Any boast or any impossible claim will lead to distrust. So be honest with the buyer and try not to make the deal at any cost. 

5. Terms of payment.

One of the most important issues in business. Should the buyer make the payment at the beginning? Is there any down payment? Is it paid via LC or in cash? All these issues must be discussed in the negotiations. 

6. Force Majeure.

There are some factors which are out of our control. Remember to carefully examine the terms mentioned in Force Majeure clause. 

7. Arbitration.

In terms of any dispute, parties will refer to someone to settle disagreements. Remember to refer to a person who is aware of commerce, so that his verdict and advice lead to a result. Not everyone deserves to be referred to. 

8. Inspection. 

Inspection of goods is prominent in business which has become a concern for many. Obligations regarding the quality and quantity of the goods and the conformity of the product with international standards has become one of the main challenges of business.

follow us on linkedin !