The principles of contracting with a foreign customer
Signing a contract is one of the most important events that is necessary between two people who intend to make a transaction. Signing a correct contract will help you minimize possible losses and also assure your audience that you are committed to the quality of your work. You have trust and you have rules and frameworks for your business. A healthy business relationship is never formed without a proper contract. Maybe sometimes luck will be on your side and you can do your business without a contract, but in order to achieve a stable business, you must have a contract. put it in the foreground of your work.
There are principles in entering into contracts with foreign customers that Atis Export Management Company (Arin Tejarat Yekta Soha) explains to you some of the principles of entering into contracts with comprehensive and extensive research.
- Basically, the contract should be issued on the supplier’s letterhead. This is the case when we are not the supplier ourselves and only our role is sales & be it marketing, or operate as a broker, or use our brand and marketing as an export management company, and our capital is not involved in this business, if we intend to play the role of a trader in the commercial market, the contract must be on our own letterhead. be issued.
- In the contract, we should pay attention to the shipping time and make room for unforeseen and unfortunate events and choose a safe date for ourselves, for example, we should mention in the contract that we have a shipping deadline from November 1 to the end of October.< /li>
- In the contract, the technical characteristics of the goods must be mentioned in a complete and clear manner, and we must ask the buyer to confirm this characteristic in the contract.
- Determining packaging and palletizing in the contract is very important. We must ask the buyer to specify exactly what specifications he wants for his packaging, and these specifications will be different according to the distance or proximity of the destination and the way of loading and unloading.
- It should be mentioned in the contract that the price is up-to-date and it should be emphasized that if there is no contract, the specific amount in the contract can be changed and the new amount should be agreed upon again.
- If there is a requirement for goods visit and inspection, the customer must have his representative present at the loading place so that the load can be fully checked and confirmed.
- In the contract with Iranian businessmen outside of Iran, two witnesses must be appointed for the contract, and for foreign customers, we appoint joint chambers of commerce or SGS as witnesses.
- You must receive the advance payment that you have agreed with the customer, and this advance payment must at least cover the costs of sending and returning the goods from the destination.
- If you do not fully trust the authenticity of the businessman or if you intend to cooperate with Iranian businessmen, be sure to receive 100% of the contract amount from him and ask for a representative to see the goods when they are loaded and send and confirm the goods.
- If the customer’s method of payment was by credit, be sure to mention in the contract that in case of non-payment, the product will remain in the trust of the person who is the recipient of the product, and if it is not paid, it is an example of betrayal of trust.
This article has been compiled with the efforts of Atis Export Management Company (Arin Tejarat Yekta Soha) with the aim of improving the quality level of sustainable exports based on modern science.
Hoping for a stable export