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МІНІСТЕРСТВО ОСВІТІ НАУКИ УКРАЇНИ

Донецький національний університет економіки і торгівлі

імені Михайла Туган-Барановского

Кафедра міжнародної економіки

Іваненко І.А.

Міжнародні контракти

Конспект лекцій

для студентів спеціальності 7.050103 „Міжнародна економіка”

денної та заочної форм навчання

(англійською мовою)

2010-2011 н.р.

CONTENTS

CONTENT MODULE 1. THEORETICAL ASPECTS OF INTERNATIONAL CONTRACT ACTIVITY	3
THEME 1. THE CONCEPT OF ‘INTERNATIONAL CONTRACT’ AND ITS PLACE IN RUNNING INTERNATIONAL BUSINESS	3
THEME 2. CLASSIFYING OF INTERNATIONAL CONTRACTS	7
THEME 3. STRUCTURE AND CONTENTS OF INTERNATIONAL CONTRACT	12
THEME 4. INTERNATIONAL COMMERCIAL TERMS (INCOTERMS) IN INTERNATIONAL CONTRACTS	19
CONTENT MODULE 2. ALGORYTHM OF CONCLUDING AND EXECUTION OF INTERNATIONAL CONTRACTS	25
THEME 5. CONCLUDING INTERNATIONAL CONTRACT	25
THEME 6. EXECUTION OF INTERNATIONAL CONTRACTS	28
THEME 7. REGULATION OF INTERNATIONAL COMMERCIAL DISPUTES	34
LITERATURE	47

Content module 1. Theoretical aspects of international contract activity

THEME 1. THE CONCEPT OF ‘INTERNATIONAL CONTRACT’ AND ITS PLACE IN RUNNING INTERNATIONAL BUSINESS

1.1. International commercial deal and its steps

1.2. Contract and international contract

1.3. The basic principles of international contract

1.1. The international commercial operation and its stages

Foreign trade comprises three main activities: importing (i.e. buying goods from foreign sellers), exporting (i.e. selling goods to foreign buyers) and re-exporting (i.e. buying goods from foreign sellers and selling them to foreign buyers without processing in one’s own country).

All commercial activities in foreign trade may be divided into basic ones associated with the conclusion of foreign trade contracts and auxiliary ones ensuring their successful performance i.e. associated with carriage of goods, their insurance, banking operations (financing the deals, settlement of payments between the Sellers and the Buyers, guaranteeing the strict observance of their mutual liabilities), as well as Customs and other activities.

In accordance with commercial usage existing in the Western countries contracts of sale and other agreements may be concluded either verbally or in writing.

According to the Ukrainian law contracts must always be made in the form of duly signed documents containing the terms of an agreement between two firms or associations called counterparts (or parties) to supply goods or services as a rule at a fixed price.

Agreements and contracts concluded by the Ukrainian Trade Representations are to be signed by the Trade Representative or his Deputy (first signature) and by an official of the Trade Representation specially authorized to sign agreements or contracts (second signature). The names of persons entitled to sign documents and contracts on behalf of the export or import associations abroad are published in the official journal of the Ministry of Foreign Economic Relations called “Foreign Trade”.

Agreements and contracts made in our country are to be signed by Director General of the foreign trade association or his deputies (first signature) and by directors of firms or their deputies (second signature).

Sales contract

The sales contract is the legally binding agreement reached by the seller and the buyer (the parties to the contract). It can be made orally or in writing, although it is usual for the contract to be drawn up in writing to prevent disputes.

After a sales contract has been concluded, the seller and buyer have to fulfil certain liabilities (that means there are certain things they have to do).

The seller’s liabilities are:

• to deliver the goods on time and in perfect condition;

• to ensure that the title to the goods is transferred to the buyer – in other words, the seller has to make sure that the buyer becomes the owner of the goods. This is normally done by passing a special document of title, to the buyer.

The buyer’s liabilities are:

• to accept delivery of the goods (this prevents him changing his mind after the goods have been sent);

• to pay for the goods within the time agreed.

• If one party doesn’t fulfil its liabilities, the contract is broken (this is called breach of contract). In this case the other party (the injured party) can claim compensation.