Terms of delivery

The Contract of sale stipulates the price and the terms of delivery, which constitute the framework of the subsequent agreements on financing, insurance and transportation. Most frequently used terms of delivery in international trade are CIF (cost, insurance, freight) and FOB (free on board).. On FOB and CIF terms the Sellers bear the risk of accidental loss of or damage to the goods until the goods pass the ship's rail. Other terms of delivery that may be used in foreign trade are:

The choice of the terms of delivery and the terms of payment 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.

Packing and marking

Packing and marking are important clauses of a Contract. Packing is a means, which helps to keep goods safe during transportation and storaging. There are a lot of kinds of packing. For example, some goods have inside and outside packing: perfume has inside packing (a bottle) and outside packing (a box). Packing can also be made of different materials: paper, glass, plastic, cardboard, iron and so on. Improper or faulty packing may cause damages and breakages of goods.

Marking is usually made on packing. It must include the name and address of the Buyer, the Seller and the manufacturer of the goods, numbers of standards or technical documentation, numbers of roads, kinds of transport and some other details concerning this particular consignment of goods: weight, quantity and othersWrong marking can lead to short-shipment and short-delivery, improper handling, misdirection of the goods and many other unpleasant problems.

Guarantee clause of a contract

The Guarantee Clause is one of the most important points of the Contract made on the sale and purchase of different machinery and equipment. The Sellers guarantee:

1. a) that the equipment supplied corresponds to the highest achievements of the world technics for the given type of equip­ment;

2. The guarantee period of the normal operation of the equipment is to be 12 months from the date of putting the equipment into operation, but not more than 24 months from the time of its delivery.

3. If during the guarantee period the equipment proves to be defective or not in conformity with the terms and conditions of the Contract, the Sellers undertake immediately, at the Buyer’s request, to eliminate free of charge the detected defects by repairing or replacing the defective parts of the equipment with the new ones.

4. The defective equipment will be sent back to the Sellers at their request and for their account within the dates agreed by the parties.

5. All transport expenses, insurance and other expenses, con­nected with return or replacement of the defective goods on the territory of the Buyers’ country and of a transit country as well as on the Sellers' territory are to be borne by the Sellers.

6. The above-said guarantee period in regard to the repaired equipment or newly supplied equipment will start again from the moment of putting it into operation.