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–18–
Unit 3. EXPORT SALES. CARRIAGE OF GOODS
1. FOCUS ON THE TEXT
••
••
• Pre-reading Tasks
1. Is it always easy for the contracting parties to come to an
agreement about the terms of delivery? What difficulties may arise?
2. Check the meaning and pronunciation of the following words
in your dictionary:
subsidiary (n) worthwhile (adj)
vehicle (n) adequate (adj)
exclusive (adj) subsequently (adv)
endeavour (n) genuine (adj)
••
••
• Text
THE CONTRACT OF SALE
The English exporter can obtain export contracts in a number of
ways. First, he can, if his business is large enough, set up a branch or
a subsidiary company in the foreign country. Secondly, he can appoint
agents to obtain orders. Thirdly, he can enter into what is called an
“exclusive sales” agreement with a foreign importer whereby the im-
porter agrees to buy exclusively from the exporter and to use his best
endeavours to create a market for the exporter's goods, and in return he
is given exclusive selling rights within a particular territory. The follow-
ing points should be noted with regard to exclusive sales agreements:
1. The exporter should ensure that the agreement does not contra-
vene the law relating to restraint of trade and restrictive practices in the
foreign country as well as English law. In practice the laws of many
foreign countries are stricter than the provisions of English law.
2. The agreement should make it clear that orders are placed by
the foreign buyer as principal and not as agent. The advantage of the
agreement from the seller's point of view is that he can deal with one
firm which is well known to him, rather than with a large number of
unknown firms whose solvency may be doubtful.
3. The agreement should specify precisely the goods covered, the
territory covered, the obligations of the parties and the duration of the
arrangement. A seller might, to make the arrangement worthwhile,
require the buyer to place orders up to specified amount within a
certain period. A clause requiring the buyer to do this should state this
Unit 3. EXPORT SALES. CARRIAGE OF GOODS 1. FOCUS ON THE TEXT • Pre-reading Tasks 1. Is it always easy for the contracting parties to come to an agreement about the terms of delivery? What difficulties may arise? 2. Check the meaning and pronunciation of the following words in your dictionary: subsidiary (n) worthwhile (adj) vehicle (n) adequate (adj) exclusive (adj) subsequently (adv) endeavour (n) genuine (adj) • Text THE CONTRACT OF SALE The English exporter can obtain export contracts in a number of ways. First, he can, if his business is large enough, set up a branch or a subsidiary company in the foreign country. Secondly, he can appoint agents to obtain orders. Thirdly, he can enter into what is called an “exclusive sales” agreement with a foreign importer whereby the im- porter agrees to buy exclusively from the exporter and to use his best endeavours to create a market for the exporter's goods, and in return he is given exclusive selling rights within a particular territory. The follow- ing points should be noted with regard to exclusive sales agreements: 1. The exporter should ensure that the agreement does not contra- vene the law relating to restraint of trade and restrictive practices in the foreign country as well as English law. In practice the laws of many foreign countries are stricter than the provisions of English law. 2. The agreement should make it clear that orders are placed by the foreign buyer as princi pal and not as agent.The advantage of the agreement from the seller's point of view is that he can deal with one firm which is well known to him, rather than with a large number of unknown firms whose solvency may be doubtful. 3. The agreement should specify precisely the goods covered, the territory covered, the obligations of the parties and the duration of the arrangement. A seller might, to make the arrangement worthwhile, require the buyer to place orders up to specified amount within a certain period. A clause requiring the buyer to do this should state this – 18 –
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