1. Contracts in international business transactions, clauses of a contract.

Trade is a major factor in economic development of any country including Russia. One of The most important things in foreign trade is drawing up contracts. A Contract is an agreement of buy-back transaction between the Buyer and the Seller. If foreign trade transactions a Contract is drawn up to give legal expressions to the intention of the partners and to ensure that the obligations contained in the Contract will be fulfilled.

According to the purpose and contents Contracts can cover goods, services, licenses, patents, technology and know-how.

In accordance with a Contract the Seller has sold and the Buyer has bought goods. As a rule, a Contract is drawn up in two languages: in the languages of the Seller and of the Buyer. Contracts usually cover different forms of foreign trade, in turn foreign trade comprises 3 main activities: importing (buying goods from foreign Sellers), exporting (selling goods to foreign Buyers) and re-exporting (buying goods from foreign Sellers and selling them to foreign Buyers without processing in one's own country). Russian associations use standard forms of contracts containing the following clauses (articles):

1.Naming (definition) of the Parties.

2.Subject of the Contract and volume of delivery.

3.Prices and the total value (amount) of the Contract (including terms of delivery).

4.Time (dates) of delivery.

5.Terms of payment.

6.Transportation (carriage) of goods (packing and marking, shipment).

7.The Sellers' guarantees.

-A Contract forms the basis of a transaction between the Seller and the Buyer. As a rule the Contract contains a number of clauses, such as

1)Subject of the Contract

2) Price and the Total value of the Contract

3) Terms of Payment

4) Delivery

5) Inspection and Test

6) Guarantee

7) Packing and marking

8) Arbitration

9) Insurance

10) Force Majeure

2. Terms of delivery

The contract of sale stipulates the price and the terms of delivery, which constitute the framework of the agreements on financing, insurance and transportation. There are different terms of delivery in international trade are CIF and FOB. A CIF price includes apart from the value of the goods the sums paid for insurance and freight. An FOB price only includes the value of the goods, transportation and other expenses until the goods are on board the vessel. And Other terms of delivery that may be used in foreign trade are:

FAS - free alongside ship, which means that the Sellers pay for all the charges up to and including the placing of the goods alongside ship but do not pay for loading.

CAF - cost and freight, which means that the Sellers undertake to pay for the cost of transportation of the goods to a specified destination.

Ex ship with port of destination indicated which means that the Sellers pay for ail charges up to and including the placing of the goods at the disposal of the Buyers on board the vessel at the port of destination.

Ex quay with port of destination indicated, which means that the Sellers pay for unloading the goods and the risk doesn't pass until the goods are placed on the quay in the port of destination.

The choice of the terms of delivery as a rule remains with the Buyers, so they can insist, while negotiating a contract, on choosing those, which they find most suitable for them.