Section 1 The formation of a contract in international business negotiations

1.1 Categories of business contracts

     Based on different functions and contents of the trade form, contracts can fall into the following kinds:

     (1) Sales Contract or Purchase Contract

     (2) Contract for Joint Venture or Joint Production

     (3) Contract for Cooperation

     (4) Contract for Compensation Trade

     (5) Service Contract (Contract for Foreign Labour Service; Contract for Employment)

     (6) Contract for Technology Transfer and Importation of Equipment and Materials

     (7) Processing Trade Contract

     (8) Agency Contracts (General Agency Agreement; Agency Agreement; Sole Agency Agreement)

     (9) Contract for Credits and Loans

     (10) Contract for International Leasing Affairs

     (11) Contract for International Build-Operate-Transfer (BOT)

1.2 Structure of business contracts

     A formal written contract (Common Law System) generally consists of the following parts. 

     (1) Title. e.g. Sales Contract, Contract for Compensation Trade.

     (2) Preamble

     (3) Body

     (4) Final Clauses

1.3 Terms of business contracts

     No.1 The corporate or personal names of the contracting parties and their nationalities and principal places of business or domicile.

     No.2 The date and the place of the signing of the contract.

     No.3 The type of the contract and the kind and scope of the the contract object.

     No.4 Quantity.

     No.5 Price terms.

     No.6 Insurance clauses.

     No.7 Packing and shipping marks.

     No.8 Quality.

     No.9 Terms of payment.

     No.10 Terms of shipment.

     No.11 Commodity inspection.

     No.12 Claims.

     No.13 Force majeure.

     No.14 Arbitration

     No.15 Liabilities

     No.16 The ways for settling contract disputes.