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Sales Contract for Export

"...adopting General Standard Conditions is legally binding, whether or not both parties are aware of or understand, every provision..."

Export sales contract can be informal or formal, depending on the foreign buyer.

1. An offer to sell made over the telephone by the exporter, covering the  type of good, quantity to be sold, per unit price and delivery and payment terms accepted by the foreign buyer or an offer to buy from the importer.

# Such a contract may be preceded by the series of offers and counter-offers before the final offer and acceptance. Such a contract may or may not be confirmed in writing.

# It usually occurs between branches of the same company or between long-standing trade partners or between reputable companies dealing in commodities subject to rapid price changes.

2. An offer to sell made by airmail, courier, telex, cable, facsimile or E-mail by the exporter and accepted by the foreign buyer.

3. A pro-forma invoice by facsimile, air mailed, E-mailed or courier by the exporter to the buyer and confirmed by the foreign buyer.

4. A formal typewritten contract setting out all the conditions of the sale and signed by both buyer and seller.

When the export contract is made quickly and informally, some of the conditions are either assumed or clarified later which, of course, may lead to dispute and misunderstanding.



Secrets of International Trading copyright
APEC | The EEC | InCoTerms 2000
Exporting Starts Here
Export Marketing Strategies
How to manage Export Promotion?
Documentation for Exporting
How to Draft and Agency Agreement?
Export Trade Barriers & Trade Blocks
Getting Paid for Exporting
Export Insurance
How to Develop an Export Market?
1/9  2/9  3/9  4/9  5/9  6/9  7/9  8/9  9/9
How to Conduct Export Research?
How to calculate Costing for Export?
Hazards of Export Packing & Shipping
Export Shipment and Transportation
4 P's of Export Business Correspondence
About Pallet a transportable platform
How to secure hassle-free Import Export  financing and Venture Capital easily from International VC Firms?


One way to avoid
misunderstanding is to agree to use what are called
General Standard Conditions.
These are standardized contract terms that permit the parties to refer to a pre-established set of rules that can be incorporated into their contract.

Once such General Standard Conditions have been adopted, they are legally binding whether or not both parties are aware of and understand every provision.

Incoterms, is one particular kind of General Standard Conditions so if the exporter and buyer agree on an FOB price - it has a clear defined Incoterms meaning and is legally binding.

Checklist for Indirect Export

1. Prepare a short list of trading houses that might be interested in your Product.

2. Try to get references and recommendations about them.

3. Ask for information from each, explaining why.

4. Visit the most promising to find out what they can do for you.

5. Keep in mind which foreign markets you intend to enter first.

6. Reserve those foreign markets you wish to export directly.

7. Supply the trading houses selected by you with information about your company and products.

8. Negotiate an agreement whereby the trading house buys directly from you or acts as your export agent.

9. Fill each export order as and when received and maintain contact. Procedures for Indirect Exporting


Checklist for Direct Exporting

1. Decide whether you will sell directly to foreign users or through an import agent or whether you will sell to a foreign distributor, who will resell your product.

2. Prepare literature about your company and its products that can be used to support your export efforts.

3. If selling directly to foreign users yourself, prepare a sales campaign (direct mail, trade show participation, foreign visits, etc.) and develop a list of sales leads.

4. Begin sending letters to prospective customers and following up on sales leads. Procedures for Direct Exporting



Checklist for selling through an
Import Agent or Distributor

Begin the search for a suitable agent or distributor in each foreign market

1. Choose an agent or distributor and negotiate an agency or distributorship agreement.

2. Monitor the performance of the agent or distributor.

3. Sales Contract for the Exporter.

Recommended reference: How to Develop your Export Market?

Next page 6/9 - Incoterms - "...a situation in which everything is the responsibility of the seller and the extreme where everything is the responsibility of the buyer..."

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