The contract should allow the use of all international payment methods, including at least: advance payment, unpaid invoice, withdrawal of documents and credit (also known as accrediting). The model is intended for the international sale of different types of products (raw materials, industrial components, consumer goods, machinery, etc.). In the main aspects of the contract (products, price, form and date of payment, delivery time, etc.), a number of alternatives have been proposed so that the most appropriate version can be chosen for the purposes of the one who concludes the contract (seller or buyer). The contract is designed for the sale of products between undertakings and not to final consumers and, while each transaction constitutes a sale in itself, it is not part of a long-term agreement on the supply of products. If this were the case, it is preferable to use the international supply contract template. The international sales contract is the most used among those that govern business relations between companies in different countries. This Agreement sets out the rights and obligations of the parties (exporter-seller and importer-buyer) as well as remedies for infringement. Parties should indicate whether they accept a “preshipment” inspection (also known as a pre-shipment inspection or PSI); the parties may indicate the place of the inspection as well as other details such as the inspection entity. The examination requires the seller to inform the buyer of the availability of the goods for examination. The retention of title (RoT) clause is common in international trade. It provides that the seller retains ownership of the goods until full payment of the purchase price and that the seller may recover the goods if the price is not paid. There are several variants of the RoT clause, but the main species can be distinguished: (a) the simple RoT clause, according to which the seller retains ownership until the price is paid, and (2) the extended clause according to which the seller tries to extend its goods to include: the proceeds of a sale of goods and any other indebtedness, which is due to the seller by the buyer. It is customary for international trade agreements to be subject to force majeure or “hardness” clauses that compensate parties for their performance when their failure is due to obstacles beyond their control or that were reasonably unforeseeable, such as the outbreak of a war, earthquake or hurricane.
Multinational companies usually have their own specific international sales contracts as well as the general conditions of sale and purchase. On the contrary, small and medium-sized businesses tend to use general forms or contract templates, which is why it is important to negotiate and design the most important clauses. Pages quoting the icc model international sales contract: This clause is one of the central clauses of a sales contract. . . .