Question

Your company located in Washington State is considering entering into a large sales contract with a purchaser in Indonesia. You are working in the contracts department and have been asked to help draft the contract. From the perspective of international law, prepare a report listing and discussing the issues the contract should address for the benefit and protection of your company in entering into business with the purchaser in Indonesia. Submit a response of at least 60 words. ( 30 pts )

Answer 1

answer-

The issues the contract should address for the benefit and protection of our company in entering into business with the purchaser in Indonesia are-

Delivery Terms-

Delivery terms need to be considered before entering into the contract of sales. If you are purchasing a purchaser then you may want delivery which would include all the cost and damages on seller until the goods are arrived to us safely.

2. Currency

You may not want to do transaction in any currency other than US dollar. If you find that instead of US dollar the currency of transaction is Indonesian then you may suffer exchange rate cost. so You need to fix this issue before hand that in which currency you want to do contract transaction.

3-Export/import compliance-

When you do sales contract with another party from different country, then you need to face issue of import/export compliance like documentations, Fees, inspection etc.

4- Payment terms and conditions-

Payment terms and conditions should be considered. You may want to know in which method of payment you are doing contract. if you are buyer then how you are paying, online method, letters of credit, advance payment etc. These issues are important to consider.

5-Documentation Responsibilities

A variety of documents are required as part of every export. Some are used for export compliance, some are required for transporting the goods, some are used for import clearance, and others are used to transfer payment from the buyer to the seller.