Contracts for the sale or purchase of products by a UK business to or from an overseas counterparty can give rise to a number of factors additional to those to be considered when the other party is also based in the UK.
The movement of goods across borders generally is likely to require much documentation, which is not required in relation to domestic sales: for clearing customs, demonstrating the origin of and title to the goods, dealing with VAT and other shipping or transport documentation requirements.
Transporting the goods from one country to another also involves deciding upon which party will bear the responsibility, costs and risks of: arranging transport to what location; insurance for loss or damage in transit; arranging customs clearance and paying any duty on the goods. This is often agreed by reference to Incoterms® where it is important to ensure that there is no conflict or inconsistency between the agreed Incoterm and any trading terms applicable to the contract.
The sale contract will need to include provisions regarding the currency of payment and the businesses will need to consider the risks of fluctuations in exchange rates. Where credit risk is a concern more secure means of taking payment such as letters of credit may be used.
Other factors to be considered include sanctions, governing law and jurisdiction and even language.
Our commercial lawyers have experience and particular interest in drafting, negotiating and advising on export sales contracts.
If you would like assistance or legal advice in relation to an export sale contract, please contact one of our commercial lawyers on 08081668827.
For further information you may also be interested in:
Disclaimer: Information on this website is provided for general information purposes only. It is not intended to constitute and should not be relied upon as legal advice. There are a number of factors and circumstances which may be relevant to legal advice. The law may also have changed before we are able to update the website. If legal advice is required, please contact us.
 |
 |
 |
 |
 |
 |
|
