What contract terms should I examine when making a trade contract? Should I get a customs consultation?

Hello. This is Daeryun Law LLC, which provides customs consultations.

The contract terms that must be examined when concluding a trade contract are as follows.

1. Goods

The type of goods, quantity, quality, specifications, and packaging method are very important factors.

If the contract does not contain a specific description of the goods, unnecessary disputes may arise after the transaction. .

2. Price

You must clearly determine the unit price, the total amount, and the timing and conditions of payment.

In addition, you must also clarify the basis for determining the price, and you must set conditions for price adjustments due to exchange rate fluctuations.

3. Delivery terms

Delivery terms specify the responsibility for shipping the goods and the allocation of costs.

4. Payment terms

Payment terms are an important part of a trade transaction, and you must specifically state the payment method (such as a letter of credit, prepayment, or deferred payment).

The exporter should set a payment method favorable to themselves.

5. Delivery deadline terms

The delivery deadline is an element that must be stated in the contract.

You should state the delivery deadline precisely, and set a penalty for delay to clarify the responsibilities between the two parties.

If the delivery is delayed, a penalty may be imposed, so you should negotiate this in advance and include it specifically in the contract.

6. Transport and insurance

You must clarify the method of transport, the insurance amount, and the scope of insurance coverage.

7. Taxes and customs duties

In a trade contract, you must clarify who will bear the taxes and customs duties.

8. Termination and modification of the contract

It is important to clearly set the conditions for termination or modification of the contract in advance.

Because the content of a trade contract operates as the most important factor when legal risks arise in the future, we recommend requesting a customs consultation from a specialized attorney from the time of concluding the contract in order to prevent potential legal risks.

At Daeryun Law LLC, customs attorneys as well as customs specialist advisors who have obtained a licensed customs broker qualification review clients' cases and present strategies.