Sales Terms

The sales terms in international steel trade usually cover various aspects to ensure the smooth progress of the transaction and safeguard the rights and interests of both parties.

I. Product Terms

  1. Product Name and Specification: Clearly list the detailed information of the steel products to be sold, including the name, specifications, and model.
  2. Quality Standards: Specify the quality standards that the products should meet, such as national standards, industry standards, or international standards, and may require attaching the original mill test certificate.

II. Price and Payment Terms

  1. Price Terms: Clearly state the unit price of the products and whether it includes freight, taxes, and other expenses.
  2. Payment Method: Specify the manner and timeline for the buyer to pay the contract amount, such as the percentage of the advance payment and the remaining payment schedule.

III. Delivery Terms

  1. Delivery Location: Designate the delivery location of the products, which may be the seller’s warehouse, the buyer’s warehouse, or a designated third-party warehouse.
  2. Delivery Deadline: Specify the specific date or deadline for product delivery.
  3. Mode of Transportation: Agree on the transportation method for the products, such as sea freight, land freight, or air freight.

IV. Packaging and Loss Terms

  1. Packaging Method: Specify the packaging method for the products to ensure their safety and integrity during transportation.
  2. Loss Calculation: Agree on the method of calculating product losses during transportation and the responsibility attribution.

V. Default Liability Terms

  1. Default Scenarios: List the circumstances that may lead to default, such as delayed delivery or product quality issues.
  2. Default Liability: Specify the responsibilities and compensation methods that the defaulting party should bear, such as price reduction, product replacement, or return.

VI. Dispute Resolution Terms

  1. Negotiation: Both parties should first resolve any disputes arising from the performance of the contract through friendly negotiations.
  2. Litigation: If negotiations fail, the dispute may be submitted to the People’s Court at the place where the contract is signed for resolution.

VII. Other Terms

  1. Contract Validity: Specify the effective time, duration, and conditions for contract termination.
  2. Confidentiality Clause: Protect both parties’ confidential commercial information and sensitive data to prevent disclosure.
  3. Force Majeure Clause: Provide for situations where the performance of the contract is hindered by force majeure factors to mitigate the responsibilities of both parties.

The specific content of these terms may vary depending on the specific needs and actual situation of the transacting parties, but the overall framework and main terms are generally similar. When signing an international steel trade contract, both parties should fully consider various factors to ensure the completeness and enforceability of the contract terms.