Analysis of Legal Risks in International Trade Contracts-Attorney Huang Qiang
Frequently asked questions: contract formation, retail behavior, agency issues, delayed delivery, quality issues, trade terms, debt amount, offset transfer, liability for breach of contract, whether it constitutes a trade dispute, insurance policy issues.
The contract is established: Case 1 is that the contract factory and the company name displayed on the seal are not the buyer’s company name, and the contract cannot be used to confirm the confirmation of the contractual relationship between the two parties.
Case 2 The contract is signed by the buyer, and the suffix of the buyer’s official website is different, and the identity of the contact person is doubtful. Disciple of the consignee of the bill of lading, the telephone number is inconsistent with the buyer, and the exporter cannot prove that Seven has fulfilled the delivery obligation to the buyer and that the buyer has received the goods.
一、 Review the basic situation of the parties to the contract
1) Name: Is it consistent? Are there different letters? Are there more or less bars, dots, spaces, other symbols, etc.?
2) Business scope: Whether the purchased product is consistent with the main business, and the person at risk of fraud.
3) Email: Is it a corporate email? Is the suffix exactly the same as the buyer’s official suffix? The suffix is only similar, and the possibility of fraud is greater. In extreme cases, the buyer has never registered the corporate mailbox, and the third party fraudulently registered.
4) Payment account number: Check whether they are completely consistent, and there must be no differences in punctuation.
5) Registered address: Does it belong to a different state from the buyer (such as the United States, different states can register companies with exactly the same name)? Does it belong to different countries (such as Uganda and Kenya, with the same name but different countries, must not be the same company?
6) Consignee: Is there a high risk for the goods to be sent to a third country? If the goods are sent to a third party, are there clear instructions from the buyer!
7) Buyer’s signatory; is it the person in charge/legal representative? Is it someone else’s, is there an authorization document? If it cannot be verified, is the trade authenticity confirmed through the buyer’s official contact information?
1) The buyer’s official website, most companies will have (extreme cases have seen fake website fraud) 2) Get the buyer’s credit report.
The government public enterprise information platform of the buyer’s country.
United States: SEC.gov or New York Secretary of State Corporation and Business Entity Search United Kingdom: Companies House, www.gov.uk
India: Ministry of Corporate Affairs Ministry Of Corporate Affairs
Singapore; Accounting and Corporate Administration www.acra.gov.sg
1) The agreed quality objection period is beneficial and harmless
2) agreed inspection terms
Clarify inspection institutions, inspection methods, inspection standards, etc.
3) Seriously perform inspection obligations to avoid quality disputes
Third-party inspection at the factory, and the other party confirms that there is no problem in quality before shipping. Samples are sealed for sample inspection, and certificates of conformity from official institutions are obtained.
4) Pay attention to the preservation of written evidence.
The customer is helping other companies to purchase as an agent. In case of problems, the seller can choose the person responsible (the agent purchaser, or the actual purchase company, but must be verified and approved by the credit guarantee). Once selected, it cannot be changed.
1) A clear payment deadline has been agreed upon. Does the verification have conditions attached and the agreement is unclear?
2) Multiple shipment orders in batches, pay attention to timely reconciliation with the buyer to confirm the amount of debt
3) Pay attention to the comparison of the payment period and debt amount with the credit limit approved by China Credit Insurance.
Advice on preventing trade risks with the United States
1) Add additional insurance
2) If you can guarantee it
3) Raise awareness of legal rights protection
4) Consultation and screening of buyer qualifications
China Credit Insurance Small and Micro Digital Products and Services, HP Pocket: Information Service Package, Seavo World APP, Small and Micro Academy.
1) Looking for overseas customers
2) Risk monitoring and early warning
3) Identify the risks of overseas buyers.
In conclusion, we are the manufacturer and also the trading company on undercarriage parts, the things we should concern is not only offering our customers reliable idlers, sprockets, rollers, track link assy and other parts but also should concern the risk on the transaction.
Only in this way can ensure win-win business and long-term cooperation.
Post time: Jul-18-2021