7. 계약 단계

전체 글

(1)

English for Global Business

(2)

During the Agreement Phase

,

negotiations

b/t a supplier and a customer will be held via;

• Offer

;

• Acceptance

;

• Consideration

; and

• Intention to enter into legal relations

.

At best, it will

end in a contract

, which

determines the rights and duties

of the

(3)

After studying this lesson, you will be able to :

• understand procedures of business negotiation;

• identify the formation of international sales contract.

Objectives

(4)

It is

the dealings

between the supplier and

customer

in order to reach

AGREEMENT

on;

• Price

• Quantity

• Payment

; and

• other terms and conditions

of a sale.

(5)

To reach to an agreement

of the various terms,

the global business negotiation generally needs to

go through

five links

:

• Inquiry • Offer

• Counter-offer

• Acceptance; and

• Conclusion of a Contract.

Sometimes, only offer and acceptance will do. It is stipulated in the laws of some countries that only offer and acceptance are the two required factors, failure of which will mean no contract.

5

(6)

Basic Flow of Establishing Agreement

for the Sale of Goods Contract between A and B

(7)

As has been noted earlier, the parties who are involved in a GBT (export/import) are numerous and can be described variously. Though, the

basic parties in the GBT are as follows:

(i) Customer: the buyer who purchases the goods;

(ii) Supplier: the seller who provides the goods.

6

(8)

Formation of Int’l Sales Contract

The forming of a contract includes negotiation,

conclusion and signing of a contract. Global Business negotiation involves five steps as follows:

1. Inquiry;

2. Offer;

3. Counter-offer;

4. Acceptance; and

(9)

Main Stages of Formation of Int’l Sales Contract

Formation of Int’l Sales Contract

(10)

Offer

 According to CISG 1980, a proposal for concluding a contract addressed to one or more specific people constitutes an offer if it is sufficiently definite and indicates the intention of

the offer or to be bound in case of

 An offer is a proposal addressed to specific persons, i.e. normally from an offeror to an offeree, indicating an

intention by the offer or to be bound to the sale or purchase of particular goods for a price.

(11)

Counter Offer

67

 If the offeree deems the price is on the high side, some terms and conditions do not match what was expected, he/she may decline the offer, or most probably, make a counter-offer.

 A reply to an offer which purports to be an acceptance BUT contains

additions, limitations or other modifications is a rejection of the offer and constitutes a counter-offer.

 Additional or different terms, put forward by the offeree, relating to the price, payment, quality and quantity of the goods, place and time of delivery etc. are considered to alter the terms of the offer materially.  This means the offeree declined the terms of the offer.

 Like an offer, a counter-offer is either with engagement or without engagement. A counter-offer in the same way is a firm offer.

(12)

Acceptance

 The

acceptance

or a confirmation is the

assent to

the terms of an offer

, required before a contract

can be valid.

 It is

indispensable for the conclusion of business

and the

signing of a contract

indicating that the

buyer and the seller have come to an agreement on

(13)

Acceptance

 An

acceptance

must meet the following requirements:

① The acceptance must be made by the offeree;

② The contents of an acceptance must conform to that of an offer;

③ The acceptance must reach the offeror within the time of validity of the offer;

④ The acceptance must be in oral or written form; ⑤ The acceptance can contain NO addition,

(14)

Signing of the Contract

In the GBT, the acceptance of an offer or order constitutes

a contract.

 In accordance with relative Korean practice and laws, Korean export and import companies are required to sign a written contract stipulating rights and responsibilities of the parties

concerned with foreign counterparts.

 A contract is an agreement enforceable by law, by which both the buyers and the sellers mutually agree to carry out a

(15)

Standard Form Contract

[Model Letter - SALES

NOTE]

(16)

Standard Form Contract

[Model Letter – SALES

NOTE]

(17)

Standard Form Contract

[Model Letter – SALES

NOTE]

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