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Example of Sales Purchase Contract

In: Business and Management

Submitted By Ekaterinarus
Words 8302
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DAY2NIGHT CONVERTIBLE HEEL SHOESSt. |

Content Part I. Business situation 3 Part II. Relevant sample of International Sell-Purchase Contract 8 Part III. Transaction scheme 8 Part IV. Project network analysis of the transaction 8 Part V. Commercial Offer, Counteroffer, Contract 8 Commercial offer 8 Counteroffer: 10 International Sales Contract 11 Part VI. Proposals concerning all logistics items on the Contract under consideration 17 Choice of Incoterm 17 Choice of terms of payment 18 Choice of transportation arms and means 18 Proposals and rationales to use an international middleman in the near future 18 Considerations on insurance 18 Considerations on customs clearance 18 Considerations on packaging instructions. 18 Part VII. International middleman 19 Part VIII. INTERNATIONAL AGENT AGREEMENT 19 Appendixes 22

Part I. Business situation
Shoe Day2Night Convertible Heels for Russian market
According to the national footwear Union the capacity of the market of footwear in Russia is estimated at 500-600 million pairs, which is in money terms 12-14 billion US dollars. In a year the state of the internal market in Russia is characterized by the following indicators:official imports of 340 million pairs,the official production to 8 million pairs,underground production is 40% of the market. The market is of interest for foreign manufacturers, because the population of Russia is million people and all need shoes. The growth of the national economy - 4% per year, so buyers have money.
The footwear market is divided into segments casual, sports and children's shoes. In each of them there is a positive sales dynamics. Recently the volumes of sales in the segment of luxury shoes are also growing. After the crisis was seen leaving the main part of buyers in the mass market, but a couple of years ago rates demand for shoes returned to pre-crisis level.
Also we made some research to find concrete figures about this market. The Russian footwear market has been fluctuating in recent years with contractions seen in 2009 and 2012. Moderate, stable growth is expected for the forecast period through to 2017.
The Russian footwear market had total revenues of $31.1bn in 2012, representing a compound annual growth rate (CAGR) of 2.5% between 2008 and 2012. In comparison, the French and German markets grew with CAGRs of 0.5% and 2.2% respectively, over the same period, to reach respective values of $11.2bn and $12.3bn in 2012.

Figure 1. Russian Footwear market value: $ million, 2008-2012

In addition, we conducted Five force analysis.
Buyer Power
Buyers, with respect to the footwear market, are defined as end-user consumers and market players as footwear retailers.
The necessity, and therefore high sales volumes, of footwear reduces the buyer power of individual consumers considerably.
As a consequence of fashions and the variety of different functional footwear categories, there is a great deal of differentiation within the footwear market. This increases choice for consumers and the availability of suitable products, which in turn strengthens the power of market players over buyers as they can target a wider range of customer.
Overall, buyer power with respect to the footwear market is moderate.

Figure 2.Drivers of buyer power in the footwear market in Russia, 2012

Supplier Power
Suppliers to the footwear retail market are defined as footwear manufacturers.
Much of the footwear sold within this market is sourced from manufacturers in low-cost manufacturing locations, especially South-East Asia, and therefore many western countries' domestic manufacturers lack the ability to compete effectively within the mainstream footwear market.
Many western suppliers have gained power within the market through differentiating their offerings. They have achieved this both by producing specialist footwear for specific applications and by producing high-end designer footwear.
The high number of manufacturers within low-cost manufacturing regions provides ample potential for switching and this, coupled with the economic advantage held by western retailers and wholesalers, means that supplier power in this context is weakened.
With the exception of very popular brand name manufacturers such as Nike, it is difficult for manufacturers to establish themselves in retail and therefore forward integration is rare.
Overall, supplier power with respect to the footwear market is moderate.

Figure 3.Drivers of supplier power in the footwear market in Russia, 2012

New Entrants
Fixed costs for retail operations are relatively low and new entrants are common. However, there exists in this market a number of large established retail groups that wield significant economies of scale through bulk purchasing and pooling certain back office operations. As a consequence of this, it is difficult for such new entrants to increase in size considerably.
Given the large number of low cost manufacturers supplying the market, it is relatively easy for new players to establish the required supply chain.
With the exception of certain specialist types of footwear, such as sportswear and designer products, brand recognition of footwear retailers is relatively low, further facilitating the entrance of new players.
Overall, the threat of new entrants with respect to the footwear retail market is strong.

Figure 4.Factors influencing the likelihood of new entrants in the footwear market in Russia, 2012

Threat of substitutes
As footwear is a basic necessity, the threat of substitutes to the market is limited.
However, there is a significant degree of substitution between segments of the market. For example, sportswear is often a substitute for other more traditional footwear types.
Overall, the threat of substitutes is weak.

Figure 5.Factors influencing the threat of substitutes in the footwear market in Russia, 2012

Degree of rivalry
Although footwear retailing is highly fragmented, the market is dominated by large retail groups, between whom there is a high degree of rivalry.
However, fixed costs for retail operations are not prohibitively high and therefore, smaller companies easily co-exist within the market. Furthermore, this allows relatively easy expansion of output capacity, which enhances rivalry.
There is a high degree of diversity between retailers, with dedicated shoe retailers competing with apparel retailers and large supermarket chains.
Overall, rivalry between footwear retailers is assessed as strong.

Figure 6.Drivers of degree of rivalry in the footwear market in Russia, 2012

In that case we can make a conclusion that Russian footwear market is high potential market.
The company EASYHEELS offers a unique product. These shoes with removable heels. A girl can adjust the height of the heel, is the most convenient for your situation. This product will be of interest to the girls, leading active way of life, in addition to those who have a car and like to walk in heels. The target audiences of our company are girls belonging to middle social class, as the average price is about one hundred dollars. This shoe is designed by Candice Cabe, whose create the original models. Customers have the possibility to click (screw) on and off heels of different heights. Day2Night has 5 interchangeable heels ranging in height from 1,5 inches to 3,5 inches, moreover they have flexible sole. The main competitive advantage of these shoes is when you don’t have place in your bag to take one more pair of shoes; you have an option to use Day2Night shoes. You can choose the appropriate height of the heel. Then, when you want to wear high heel shoe you can simply screwed on the needed heel. So that we try to identify the crucial advantages which our product has: * No more traveling & packing tons of shoes * No more commuting into work in sneakers & changing into heels * Choose heels to match how tall/ short you prefer to be * Now carry a small purse. Little heels fit in a clutch * Dance the night away then walk home comfortably * If the heel tips wears out, simply replace it (never go to the cobblers)
EASYHEELS will start selling products in Russia with help of shoe chain Carlo Pazolini. This chain has representative offices in many cities of Russia. In addition there sells shoes certain price segment, with which we want the buyer to associate our products.
Part II. Relevant sample of International Sell-Purchase Contract
A relevant sample of International Sell-Purchase Contract, which was used as a reference pattern to be analyzed and be used to create our own contract, is presented in Appendix №1.
Part III. Transaction scheme
We sell one container of Shoe Day2Night Convertible Heels. The buyer makes an order and can take his order in 10 days. Seller analyzes the order during 6 days. Then seller deliver goods from Boston, USA to Moscow in Russia approximately in 4 days including loading and off-loading of the product.
For the payment we use irrevocable, revolving and confirmed letter of credit in USD, payable 100% at sight on documents after delivery. The Buyer pays us (the Seller) 100% of the total sum of the Contract within 60 days against the following documents.
Part IV. Project network analysis of the transaction
There are possible risks of non-payment after delivery, because the Buyer pays 100% of the total sum of the contract after delivery. However, letter of credit transfers that risk to the letter of credit’s issuer (the bank). Of course there are also some Force major risks. All details are written in special part of the contract.
Part V. Commercial Offer, Counteroffer, Contract
Commercial offer
Shoe Day2Night Convertible Heels offer EASYHEELS TRADING COMPANY LIMITED5 ABC Street, Boston, USA, 195555Phone +7809583724834Fax +7809583724835Day2Night@mail.com |

The following offering is made based on the latest information available. Easyheels Trading Company Limited advises potential buyers that the offerings are made on an “as available basis”, and they are subject to prior sale and prices may change depending on the specification of a particular shoes model ordered. | PRODUCT: | Day2Night Convertible Heel Shoes | SPECIFICATION: | Day2Night Convertible Heel Shoes are leather shoes, which can be changed from high heels to lower heels in seconds. Day2Night Convertible Heel Shoes packaged into cardboard box. The said box has the set of heels (5 pairs) and sole are designed in black color. There are 10 different models of shoes as it is presented on the picture attached hereto. | QUALITY: | Shoes are made of genuine leather and correspond to certification conditions, which should be accepted by both parties. If defects are found, the buyer has the opportunity to replace the goods. | COUNTRY OF ORIGIN: | The United States, delivery from the Logan airport (Boston, USA). | PACKAGING: | A pair of shoes packaged into cardboard box. Each of said boxes includes the set of heels (5 pairs) disposed within a plastic bag and the sole disposed within a bag. | PRICING: | All prices are in USD and are understood as CPT, Moscow (Russia). The price per one pair of shoes depends on the design. Price per pair (minimum) – $99Price per master box (x20) – $1980 | PRODUCT AVAILABILITY: | Product available within 8 days for shipment after receipt of Letter of Credit by Seller’s bank. | SHIPMENT: | Approximately 2 days by air from the USA (Boston Logan Airport) to Russia (Moscow Sheremetyevo Airport). The Seller delivers the goods to Moscow Sheremetyevo Airport, and pays for all transportation. When good is delivered to Moscow the buyer is responsible for good’s distributing. In Russia good can be delivered by train. | INSURANCE: | Cost of insurance coverage during transportation to Moscow included at Seller’s expense. | INSPECTION: | The Seller will provide a “Certificate of Quality” if applicable. Any other inspections are at the Buyer’s expense. | VALIDITY: | Product is available on an ongoing basis. Price are subject to confirmation at time of confirmed order placement. | PAYMENT: | By transferable, revolving and confirmed letter of credit in United States Dollars, payable 100% at sight on documents. | DOCUMENTS: | The following documents will be provided as and where required and under the conditions mentioned above: * Quality and weight SGS certificate or similar, * Commercial invoice, * Certificate of origin, * Packing list, * Certificate of Insurance, * Copy of Contract, * Bill of lading. |

Counteroffer:
During negotiations between parties, the Buyer, Limited Liability Company "Carlo Pazolini", offered to consider the following terms and conditions of the offer: * Quantity (variety of models); * Delivery (way of transportation); * Price (discount); * Risks; * Origin (maximum capacity).
After that the following counteroffer was approved.

Shoe Day2Night Convertible Heels offer EASYHEELS TRADING COMPANY LIMITED5 ABC Street, Boston, USA, 195555Phone +7809583724834Fax +7809583724835Day2Night@mail.com |

The following offering is made based on the latest information available. Easyheels Trading Company Limited advises potential buyers that the offerings are made on an “as available basis”, and they are subject to prior sale and prices may change depending on the specification of a particular shoes model ordered. | PRODUCT: | Day2Night Convertible Heel Shoes | SPECIFICATION: | Day2Night Convertible Heel Shoes are leather shoes, which can be changed from high heels to lower heels in seconds. Day2Night Convertible Heel Shoes packaged into cardboard box. The said box has the set of heels (5 pairs) and sole are designed in black color. There are 10 different models of shoes as it is presented on the picture attached hereto. | QUALITY: | Shoes are made of genuine leather and correspond to certification conditions, which should be accepted by both parties. If defects are found, the buyer has the opportunity to replace the goods. | COUNTRY OF ORIGIN: | The United States, delivery from the Logan airport (Boston, USA). | PACKAGING: | A pair of shoes packaged into cardboard box. Each of said boxes includes the set of heels (5 pairs) disposed within a plastic bag and the sole disposed within a bag. | PRICING: | All prices are in USD and are understood as DAT – Moscow Sheremetyevo Airport (Russia). The price per one pair of shoes depends on the design. Price per pair (minimum) – $99Price per pair (order > 5000 pairs) – $90 | PRODUCT AVAILABILITY: | Product available within 8 days for shipment after receipt of Letter of Credit by Seller’s bank. | SHIPMENT: | Approximately 2 days by air from the USA (Boston Logan Airport) to Russia (Moscow Sheremetyevo Airport). The Seller delivers the goods to Moscow Sheremetyevo Airport, and pays for all transportation. When good is delivered to Moscow the buyer is responsible for good’s distributing. In Russia good can be delivered by train. | INSURANCE: | Cost of insurance coverage during transportation to Moscow included at Seller’s expense. | INSPECTION: | The Seller will provide a “Certificate of Quality” and samples of the product if applicable. Any other inspections are at the Buyer’s expense. | VALIDITY: | Product is available on an ongoing basis. Price are subject to confirmation at time of confirmed order placement. | PAYMENT: | By transferable, revolving and confirmed letter of credit in United States Dollars, payable 100% at sight on documents. | DOCUMENTS: | The following documents will be provided as and where required and under the conditions mentioned above: * Quality and weight SGS certificate or similar, * Commercial invoice, * Certificate of origin, * Packing list, * Certificate of Insurance, * Copy of Contract, * Bill of lading. |

International Sales Contract
Shoe Day2Night Convertible Heels International Sales Contract Контракт No. SDNH20/14 | CONTRACT No. SDNH 20/14 | Бостон | 20.03.2014 | Boston | 03/20/2014 | Компания «Easyheels», зарегистрированная согласно законодательству Соединенных Штатов Америки, расположенная по адресу: США, г. Бостон, ул. ABC, д. 5, в лице Директора г-на Ивинова Ивана Ивановича, действующего на основании Устава, именуемая в дальнейшем «Продавец», с одной стороны, и Общество с ограниченной ответственностью «CarloPazolini», учрежденное и зарегистрированное согласно законодательству Российской Федерации, расположенное по адресу: Россия, г. Москва, ул. XYZ, д.10, офис 123, в лице директора Петрова Петра Петровича, действующего на основании Устава, именуемое в дальнейшем «Покупатель», с другой стороны, договорились о нижеследующем: | The company "Easyheels", registered under the current Laws of the United States, situated: 5 ABC Street, Boston, USA, in the person of its Director Mr. Ivanov, acting on the basis of the Charter, hereinafter referred to as the Seller, on the one side, and Limited Liability Company "Carlo Pazolini" registered under the current Laws of the Russian Federation, situated: office 123, 10 XYZ Street, Moscow, Russia, in the person of its Director Mr. Petrov, acting on the basis of the Charter, hereinafter referred to as the Buyer, on the other side, have agreed that: | 1. Предмет КОНТРАКТА | 1. Subject of the contract | ПРОДАВЕЦ продал, а ПОКУПАТЕЛЬ купил товар, согласно Приложению № 1, прилагаемому к настоящему КОНТРАКТУ и являющемуся его неотъемлемой частью. | The Seller has sold and the Buyer has bought the goods in accordance with the Annex No. 1, which is attached to the present Contract and constitutes the integral part thereof. | 2. Цена и общая сумма КОНТРАКТА | 2. Price and Total Amount of the contract | Цены на товар установлены в долларах США, приведены в Приложении № 1 к настоящему КОНТРАКТУ и понимаются на условиях DAТ–Аэропорт Шереметьево, Москва (Россия).Цены на товар включают экспортную упаковку и маркировку, составление сопроводительных и таможенных документов, экспортную таможенную очистку, стоимость фрахта.Номенклатура и общее количество поставляемого товара определены в Приложении № 1.Общая стоимость настоящего контракта составляет 90 000,00 (Девятьсот тысяч долларов США 00 центов). | The prices for the goods are fixed in US Dollars and are given in the Annex No. 1 to the present Contract and shall be understood on terms DAT- Moscow Sheremetyevo Airport(Russia).The prices for the goods include export packing and marking, drawing up the accompanying and Customs documents, export Customs clearing, the freight charge.The assortment and the total quantity of the goods to be delivered are stated in the Annex No. 1.The total value of the present contract amounts to USD 90 000,00 (Ninety hundred thousand dollars and 00 cents). | 3. Сроки и условия поставки | 3. Terms of Delivery | ПРОДАВЕЦ должен поставить товар на условиях DAТ–Аэропорт Шереметьево, Москва (Россия), в течение 10 дней с момента должного подписания и скрепления печатью КОНТРАКТА.Товары поставляются одной партией самолетом. Частичная отгрузка не разрешена. Товар должен иметь следующие документы: | The “Seller” shall deliver the goods in terms DAT- Moscow Sheremetyevo Airport (Russia)within 10 days since the Contract is duly signed and sealed.The goods shall be delivered in one lot by airplane. Partial shipment shall not be allowed. The goods lot shall have the following documents: | * Оригинал счета-фактуры (инвойс) на товар, устанавливающий номенклатуру товара, количество и цену товара — 3 экземпляра; | * The original Invoice for the goods, stating the range of products, the quantity and the price of the goods — 3 originals; | * Оригинал сертификата происхождения, выданный местной торговой палатой — 1 экземпляр; | * the original Certificate of Origin, issued by the local Chamber of Commerce — 1 original; | * Оригинал авиагрузовой накладной — 3 экземпляра; | * the original Air Way Bill — 3 originals; | * Оригинал упаковочного листа — 1 экземпляр на Партию, с описанием содержимого каждого места по отдельности, указанием веса (брутто, нетто) в соответствии с Приложением №1. | * the original Packing List — 1 original for a Lot, giving the description of each package separately, gross and net weight of each package in accordance with the Annex No1. | Документы, должным образом подписанные и скрепленные печатью, должны быть отправлены экспресс почтой в офис Покупателя Почтовый адрес: 1867584 Россия, Москва, ул. XYZ, д. 10, офис 123, немедленно после отгрузки. Счет и упаковочный лист должны быть заверены печатью ПРОДАВЦА и подписью генерального директора ПРОДАВЦА. | The duly signed and sealed documents shall be sent by an express mail to the office of the Buyer. Mail address: 1867584, office 123, 10 XYZ Street Moscow, Russia, immediately after the shipment is done. The Invoice and the Packing List shall be witnessed by the Seller’s seal and of the signature of the Seller’s general manager. | В случае, если срок доставки превышает 10 дней ПРОДАВЕЦ должен уплатить ПОКУПАТЕЛЮ штраф в размере 0,1% от общей суммы КОНТРАКТА за каждый день задержки. | In case the delivery time exceeds 10 days the Seller shall pay the Buyer a penalty of 0,1% of the total sum of the Contract for each day of the delay. | 4. Качество | 4. Quality | Качество товара, продаваемого согласно настоящему КОНТРАКТУ, должно полностью соответствовать государственным стандартам и другой технической документации, существующей в стране ПРОДАВЦА, а также техническим условиям, существующим на заводе-изготовителе.ПРОДАВЕЦ должен предоставить экземпляры товара на условиях DAТ–Аэропорт Шереметьево, Москва (Россия), в течение 3 дней с момента получения официального запроса от ПОКУПАТЕЛЯ. | The quality of the goods sold under the present Contract shall be in full conformity with the State standards and other technical documentation, existing in the Seller’s country and with the technical conditions ruling at the manufacturing works.The “Seller” shall deliver the goods in terms DAT- Moscow Sheremetyevo Airport (Russia) within 3 days since the official inquiry to the “Seller” was put by the “Buyer”. | 5. Упаковка и маркировка | 5. PackingandMarking | Весь товар, согласно настоящему КОНТРАКТУ, должен быть маркирован логотипом покупателя и полностью соответствовать Приложению № 1 (столбцы «Логотип» и «Маркировка»). Упаковка поставляемого товара должна обеспечивать его полную безопасность от повреждения и коррозии во время его транспортировки самолётом, поездом и автомобилем, принимая во внимание возможные перезагрузки, обеспечивая должное обращение с товаром. | All the goods under the present Contract shall be marked with the Buyer’s Logo and in full conformity with the Annex No. 1 (Columns “Logo” and “Marking”).The packing of the goods to be delivered shall ensure the full safety of the goods from damages and corrosion during their transportation by air, railroad and automobile transport taking into account probable re-loadings, provided that the goods are duly handled.Each outer package shall be marked on one side with indelible paint in English. Each marking shall state the following: case number/the total number of cases. | ПРОДАВЕЦ должен посылать ПОКУПАТЕЛЮ Упаковочный лист по электронной почте/ факсу buyer@mail.ru/+78657373727 не позже, чем за 5 дней до отправки товара. | The Seller shall send the Buyer the Packing List by e-mail or by fax (buyer@mail.ru, +78657373727) no later than 5 days before the shipment is made. | 6. Оплата | 6. Terms of Payment | Платежи, согласно настоящего КОНТРАКТА, осуществляются в долларах США путём банковского перевода. | Payments according to the present Contract are effected in US Dollars by a bank transfer. | ПОКУПАТЕЛЬ оплачивает ПРОДАВЦУ 100% общей суммы КОНТРАКТА до отправки товара против следующих документов (посланных по факсу на номер +78657373727): | The Buyer pays the Seller 100% of the total sum of the Contract before the product shipment against the following documents (sent by fax to the fax No.+78657373727): | * Авиагрузовая накладная — 1 экземпляр; * Счёт-фактура (инвойс) ПРОДАВЦА, устанавливающий номенклатуру товара, количество и цену товара, количество упаковок, вес нетто и брутто — 1 экземпляр; * Сертификат происхождения, выданный местной торговой палатой — 1 экземпляр; * Упаковочный лист на Партию, с описанием упаковки — 1 экземпляр. | * AirWayBill — 1 copy; * The Seller’s Invoice, stating the range of products, the quantity and the price of the goods, the quantity of cases, net and gross weight — 1 copy; * Certificate of Origin, issued by the local Chamber of Commerce — 1 copy; * Packing List — 1 copy for a Container giving wise details. | 7. Претензии | 7. Claims | ПОКУПАТЕЛЬ может прислать своих представителей для осуществления контроля за качеством и количеством товара перед его упаковкой и отправкой. ПРОДАВЕЦ должен проинформировать ПОКУПАТЕЛЯ о готовности товара не позже, чем за 5 дней до упаковки и отправки. Претензии по качеству и количеству товара могут быть представлены, если товар не соответствует качеству и количеству, указанным в настоящем КОНТРАКТЕ. Претензии по качеству и количеству товара должны быть представлены в течение 4-х недель после прибытия товара на склад ПОКУПАТЕЛЯ. Перед представлением претензии по качеству и количеству товара ПОКУПАТЕЛЬ должен издать акт, подписанный компетентным нейтральным органом. В случае того, если качество и количество товара не соответствует условиям настоящего КОНТРАКТА, любая претензия должна быть рассмотрена и удовлетворена между ПРОДАВЦОМ и ПОКУПАТЕЛЕМ по взаимному согласию. | The Buyer can send its representatives in order to control the quality and quantity of goods before the packing and the shipment are made. The Seller shall inform the Buyer of the goods’ readiness not later than 5 days before the packing and the shipment are made. Claims may be made for the quality and quantity of goods if they do not conform to the quality or quantity stipulated in the present Contract. Claims for the quality and quantity of the goods shall be laid within 4 weeks after the arrival of the goods to the Buyer’s stocks. Before laying claims for the quality and quantity of the goods the Buyer shall issue an act, signed by a competent neutral organization. In case the quality and quantity of the goods do not comply with the terms of the present Contract any claim thereof will be settled by the Buyer and The Seller with mutual understanding. | 8. Форс-Мажор | 8. Force Majeure | Если возникнут какие-либо обстоятельства, препятствующие полному или частичному выполнению Сторонами их соответствующих обязательств по настоящему КОНТРАКТУ, срок, установленный для выполнении таких обязательств должен быть продлён на срок действия этих обстоятельств.Если эти обстоятельства имеют продолжительность более чем 2 месяца, любая сторона имеет право отказать в любом дальнейшем выполнении своих обязательств согласно настоящему КОНТРАКТУ. В этом случае ни одна из сторон не имеет право предъявлять требования другой стороне по возмещению какого-либо возможного ущерба. Сторона, для которой представляется невозможным выполнение своих обязательств по настоящему КОНТРАКТУ, должна в течение 1 недели известить другую сторону касательно начала, причин и последствий форс-мажорных обстоятельств.Сертификаты, выданные торговой палатой страны соответственно ПОКУПАТЕЛЯ или ПРОДАВЦА, являются достаточным доказательством таких обстоятельств и их продолжительности. | Shall any circumstances arise which prevent completion or partial fulfillment by any of the Parties of their respective obligations under the present Contract the time stipulated for the fulfillment of the obligations shall be extended for the period equal to that during which such circumstances remain in force.Shall the above circumstances continue to be enforced for more than 2 months, each Party have the right to refuse any further fulfillment of the obligations under the Contract. In this case neither of the Parties can have the right to make a demand upon the other Party for the compensation of any possible damages. The Party, for whom it becomes impossible to meet their obligations under the present Contract, shall within 1 week advise the other Party as regards the beginning, the cause and the cessation of the circumstances.The certificates issued by the respective Chamber of Commerce of the Seller’s or the Buyer’s country shall be sufficient proof of such circumstances and their duration. | 9. Арбитраж | 9. Arbitration | Все споры и противоречия, которые могут возникнуть из настоящего КОНТРАКТА или в связи с ним, подлежат разрешению в соответствии с законами Соединенных Штатов Америки.Если какой-либо спор или противоречие возникает из настоящего КОНТРАКТА, стороны должны разрешать их путём переговоров.Если разрешение невозможно и стороны не пришли к соглашению в течение 3-х недель, одна из сторон может направить спор в Арбитраж, известив об этом другую сторону заказным письмом в соответствии с правилами Арбитражного суда и Международной торговой палаты.Решение арбитража является окончательным и обязательным для обеих сторон. | All disputes and controversies, which may arise from the present Contract or in connection with the same, are to be settled according to the laws of the United States.If any dispute or controversy arises from the present Contract the Parties shall settle it by means of negotiations.Shall the settlement becomes impossible and the Parties do not come to an agreement within 3 weeks, one of the Parties may refer the dispute to Arbitration notifying the other Party by a registered letter according to the rules of the Arbitration Court of the International Chamber of Commerce.The arbitration decision is final and binding upon both Parties. | 10. Прочие условия | 10. Miscellaneous provisions | Ни одна из сторон не имеет права на передачу своих прав и обязательств по настоящему КОНТРАКТУ какой-либо третьей стороне без письменного согласия другой Стороны КОНТРАКТА. | Neither Party can be entitled to transfer their rights and obligations under the present Contract to any third Party without the written consent of the other Contract Party. | Какие-либо изменения или дополнения к настоящему КОНТРАКТУ будут иметь силу, если они осуществлены в письменной форме и должным образом подписаны обеими сторонами и будут составлять неотъемлемую часть настоящего КОНТРАКТА. | Any alterations and addenda to the present Contract shall be valid only if they are made in a written form and duly signed by both Parties and will constitute an integral part of the present Contract. | Все расходы и пошлины, а именно налоги, а также платежи, связанные с заключением и выполнением настоящего КОНТРАКТА, накопленные на территории Соединенных Штатов Америки, должны быть оплачены ПРОДАВЦОМ, и, совершенные вне вышеуказанной территории, должны быть оплачены ПОКУПАТЕЛЕМ. | All expenses and duties namely, taxes and also fees connected with the conclusion and fulfillment of the present Contract collected on the territory of the United States shall be paid by the Seller and outside the above mentioned territory to be paid by the Buyer. | Настоящий КОНТРАКТ составлен и подписан в 2-х экземплярах на английском и русском языках, имеющих одинаковую силу. | The present Contract is drawn up and signed in two copies in English and Russian, both texts being equally valid. | ПРОДАВЕЦ получает копию на английском и русском языках, ПОКУПАТЕЛЬ получает копию на английском и русском языках. | The Seller has one copy in English and Russian the Buyer has one copy in English and Russian. | КОНТРАКТ вступает в силу на момент его подписания. | The Contract enters into force on the date of its signing. | СрокдействияКОНТРАКТА–1.03.2015г. | Validity date of the Contract – 1.03.2015. |
Part VI. Proposals concerning all logistics items on the Contract under consideration
Choice of Incoterm
Incoterm we use is DAT. We have an agreement that seller delivers only to Moscow airport.Buyer agreed that we pay for insurance.Seller pays the costs of transportation, checking operations and of pre-shipment inspection. And during DAT seller delivers the goods unloaded at a specified place inside the agreed terminal. Risk is transferred as soon as the goods have been unloaded. As a result we chose this incoterm because it favors the buyer and seller.
Choice of terms of payment
We use Letter of Credit because it is the most safe way for payment. L/c is a guarantee to the seller that it will be paid regardless of whether the buyer ultimately fails to pay. In this way, the risk that the buyer will fail to pay is transferred from the seller to the letter of credit's issuer (the bank).
Payments according to the present Contract are effected in US Dollars by a bank transfer. The Buyer pays the Seller 100% of the total sum of the Contract before the product shipment against the following documents.
Choice of transportation arms and means
We decided to transfer our goods by plane. It is the fastest way to deliver products from Boston (USA) to Moscow (Russia). Moreover, if we will have an agent we will send all our production by post.
Proposals and rationales to use an international middleman in the near future
The main reason to use an international middleman is that he knows Russian market with its traditions and people and the product is very unusual for an average Russian woman. We do not have such information and marketing instruments, which can help selling products in the most effective way.
Considerations on insurance
As we are using DAT, buyer agreed that we pay for insurance. Cost of insurance coverage during transportation to Moscow included at Seller’s expense.
Considerations on customs clearance
All the cost of exporting (if any) are paid by the Seller. Import costs (custom duties) are included in the price of products.
Considerations on packaging instructions.
A pair of shoes packaged into cardboard box. Each of said boxes includes the set of heels (5 pairs) disposed within a plastic bag and the sole disposed within a bag.
Part VII.International middleman
The company’s product is very unusual and it needs to be highly promoted. As we have a little knowledge about Russian market we decided to import our product to Russia via middlemen. While choosing him we tale several points into consideration: * Our product is very unusual for an average Russian woman. There are no similar products and were not similar products before. * Our product specifically designed and made for a particular customer: for women who have an active way of life of a middle social class and higher. Of cause they should like to work on heels. * Moreover we understand, that if the min order was not sold we decide to cancel the contract. * Finally we (exporters of good) unlikely to ever become one of the dominant players in the market and will remain a niche player.
Finally we made a conclusion, that due to the facts mentioned above we need an agreement with an agent, who will promote our product on the new market for us.With an agent it is easier to enter the market, currency and marketing risks are lower, and distributor have more information about the Russian market.
As for prospective expansion to the Russian market, our strategy is based on the following aspects: * To build strong relationships with agents: * To increase the number of agents across promising cities; * To develop a flexible motivation plan for agents. * To invest in marketing.
Part VIII. INTERNATIONAL AGENT AGREEMENT
AGENCY AGREEMENT
This is an agreement between EASYHEELS Trading Company Limited (hereinafter referred to as the Principal), a Massachusetts company, having its principal place of business at 5 ABC Street, Boston, USA, and Peter Petrov, of 1, Lenin Street, Moscow, Russia (the Agent).
Dated this 15th day of March, 2014 It is hereby agreed that:
(1) The Principal appoints the Agent as Nonexclusive Agent in the territory of the Russian Federation for the period of six months. The agreement is to be reviewed at that time and renewed for a further period of six months if both parties agree.
(2) The product covered by this agreement is: Day2Night Convertible Heel Shoes. These goods will be supplied on FCA Moscow Airport terms. All goods will be air freighted to customers within the territory concerned unless otherwise agreed. Any orders negotiated by the Agent shall conform to these terms.
(3) The Agent will promote the sale of the Principal's goods within the above-named territory nonexclusively. No sales are to be made outside of said territory or to third parties within his territory if they intend to export the goods outside of that territory.
(4) The Agent shall not sell, or promote the sale of, competing goods within the named territory during the term of this agency agreement.
(5) The Agent will disclose to all prospective buyers that he is acting as the Agent of the Principal.
(6) The Agent will forward all orders received by him to the Principal for fulfillment. The Principal retains the right to reject any orders received if he so wishes.
(7) The Agent will forward regular reports detailing his activities on behalf of the Principal. The content of such reports to be agreed by the parties.
(8) The Agent shall not:
(a) Pledge the credit of the Principal without the authority of the Principal.
(b) Give any warranty or guarantee without the authority of the Principal.
(c) Sell any product at a price that differs from those stated by the Principal without the authority of the Principal.
(d) Incur any debt, or obligation, on behalf of the Principal without the authority of the Principal.
In each case any such authority must be in writing from the Principal.
(9) The Agent shall receive a commission of 15% (fifteenpercentage) on all payments received by the Principal for orders obtained by the Agent, or in the Agent's territory, for the duration of this Agreement. The commission shall be based upon the FCA invoice price of the goods. Such commission will be paid to the Agent within 30 days following receipt of payment by the Principal.
(10) Force Majeure. If either party to this agreement are prevented from carrying out the responsibilities set out above through circumstances beyond their direct control then they shall not be held liable under the terms of said agreement.
(11) This agreement shall be governed by and construed in accordance with the laws of the United States.
Signed on behalf of A. Supplier Ltd. (Principal)
Dated:
Signed on behalf of John Smith Agency (Agent)
Dated:

Appendixes Appendix №1 Relevant sample of International Sell-Purchase Contract CONTRACT No. CHPR 27/10 | Контракт No. CHPR 27/10 | Guangzhou | 07/25/2010 | Гуанчжоу | 25.07.2010 | Preamble | преамбула | The company "…", registered under the current Laws of the People's Republic of China, situated: …, in the person of its Director Mr. …, acting on the basis of the Charter, hereinafter referred to as the Seller, on the one side, and Limited Liability Company "…" registered under the current Laws of Ukraine, situated: …, in the person of its Director Mr. …, acting on the basis of the Charter, hereinafter referred to as the Buyer, on the other side, have agreed that: | Компания «…», зарегистрированная согласно законодательству Китайской Народной Республики, расположенная по адресу: …, в лице Директора г-на …, действующего на основании Устава, именуемая в дальнейшем «Продавец», с одной стороны, и Общество с ограниченной ответственностью «…», учрежденное и зарегистрированное согласно законодательству Украины, расположенное по адресу: …, в лице директора …, действующего на основании Устава,именуемое в дальнейшем «Покупатель», с другой стороны, договорились о нижеследующем: | | | 1. Предмет КОНТРАКТАПРОДАВЕЦ продал, а ПОКУПАТЕЛЬ купил товар, согласно Приложению № 1, прилагаемому к настоящему КОНТРАКТУ и являющемуся его неотъемлемой частью. | 1. Subject of the ContractThe Seller has sold and the Buyer has bought the goods in accordance with the Annex No. 1, which is attached to the present Contract and constitutes the integral part thereof. | 2. Цена и общая сумма КОНТРАКТАЦены на товар установлены в долларах США, приведены в Приложении № 1 к настоящему КОНТРАКТУ и понимаются на условиях СРТ–Одесса. Цены на товар включают экспортную упаковку и маркировку, составление сопроводительных и таможенных документов, экспортную таможенную очистку, стоимость фрахта. Номенклатура и общее количество поставляемого товара определены в Приложении № 1. Общая стоимость настоящего контракта составляет 100 000,00 (Сто тысяч долларов США 00 центов). | 2. Price and Total Amount of the ContractThe prices for the goods are fixed in US Dollars and are given in the Annex No. 1 to the present Contract and shall be understood on terms СРТ-Odessa. The prices for the goods include export packing and marking, drawing up the accompanying and Customs documents, export Customs clearing, the freight charge.The assortment and the total quantity of the goods to be delivered are stated in the Annex No. 1. The total value of the present contract amounts to USD 100 000,00 (One hundred thousand dollars and 00 cents). | 3. Сроки и условия поставки | 3. Terms of Delivery | ПРОДАВЕЦ должен поставить товар на условиях CРТ-Одесса, в течение 60 дней с момента должного подписания и скрепления печатью КОНТРАКТА. Товары поставляются одной партией самолетом. Частичная отгрузка не разрешена. Товар должен иметь следующие документы: | The “Seller” shall deliver the goods in terms СРТ-Odessa within 60 days since the Contract is duly signed and sealed.The goods shall be delivered in one lot by airplane. Partial shipment shall not be allowed. The goods lot shall have the following documents: | * Оригинал счета-фактуры (инвойс) на товар, устанавливающий номенклатуру товара, количество и цену товара — 3 экземпляра; | * the original Invoice for the goods, stating the range of products, the quantity and the price of the goods — 3 originals; | * Оригинал сертификата происхождения, выданный местной торговой палатой — 1 экземпляр; | * the original Certificate of Origin, issued by the local Chamber of Commerce — 1 original; | * Оригинал авиагрузовой накладной — 3 экземпляра; | * the original Air Way Bill — 3 originals; | * Оригинал упаковочного листа — 1 экземпляр на Партию, с описанием содержимого каждого места по отдельности, указанием веса (брутто, нетто) в соответствии с Приложением №1. | * the original Packing List — 1 original for a Lot, giving the description of each package separately, gross and net weight of each package in accordance with the Annex No1. | Документы, должным образом подписанные и скрепленные печатью, должны быть отправлены экспресс почтой в офис Покупателя Почтовый адрес: […] немедленно после отгрузки. Счет и упаковочный лист должны быть заверены печатью ПРОДАВЦА и подписью генерального директора ПРОДАВЦА. | The duly signed and sealed documents shall be sent by an express mail to the office of the Buyer. Mail address: […] immediately after the shipment is done. The Invoice and the Packing List shall be witnessed by the Seller’s seal and of the signature of the Seller’s general manager. | В случае, если срок доставки превышает 60 дней ПРОДАВЕЦ должен уплатить ПОКУПАТЕЛЮ штраф в размере 0,1% от общей суммы КОНТРАКТА за каждый день задержки. | In case the delivery time exceeds 60 days the Seller shall pay the Buyer a penalty of 0,1% of the total sum of the Contract for each day of the delay. | 4. Качество | 4. Quality | Качество товара, продаваемого согласно настоящему КОНТРАКТУ, должно полностью соответствовать государственным стандартам и другой технической документации, существующей в стране ПРОДАВЦА, а также техническим условиям, существующим на заводе-изготовителе. | The quality of the goods sold under the present Contract shall be in full conformity with the State standards and other technical documentation, existing in the Seller’s country and with the technical conditions ruling at the manufacturing works. | 5. Упаковка и маркировка | 5. PackingandMarking | Весь товар, согласно настоящему КОНТРАКТУ, должен быть маркирован логотипом покупателя и полностью соответствовать Приложению № 1 (столбцы «Логотип» и «Маркировка»). Упаковка поставляемого товара должна обеспечивать его полную безопасность от повреждения и коррозии во время его транспортировки самолётом, поездом и автомобилем, принимая во внимание возможные перезагрузки, обеспечивая должное обращение с товаром. | All the goods under the present Contract shall be marked with the Buyer’s Logo and in full conformity with the Annex No. 1 (Columns “Logo” and “Marking”).The packing of the goods to be delivered shall ensure the full safety of the goods from damages and corrosion during their transportation by air, railroad and automobile transport taking into account probable re-loadings, provided that the goods are duly handled. Each outer package shall be marked on one side with indelible paint in English. Each marking shall state the following: case number/the total number of cases. | Маркировка каждой внутренней упаковки должна быть абсолютно нейтральной, без использования надписей на каком либо языке. | The marking of each inner package shall be totally neutral there shall be no inscriptions in any language. | ПРОДАВЕЦ должен посылать ПОКУПАТЕЛЮ Упаковочный лист по электронной почте или по факсу …end_of_the_skype_highlighting) не позже, чем за 2 недели до отправки товара. | The Seller shall send the Buyer the Packing List by e-mail or by fax (…) no later than 2 weeks before the shipment is made. | 6. Оплата | 6. Terms of Payment | Платежи, согласно настоящего КОНТРАКТА, осуществляются в долларах США путём банковского перевода. | Payments according to the present Contract are effected in US Dollars by a bank transfer. | ПОКУПАТЕЛЬ оплачивает ПРОДАВЦУ 100% общей суммы КОНТРАКТА в течение 60-ти дней против следующих документов (посланных по факсу на номер …): | The Buyer pays the Seller 100% of the total sum of the Contract within 60 days against the following documents (sent by fax to the fax No. …): | * Авиагрузовая накладная — 1 экземпляр; * Счёт-фактура (инвойс) ПРОДАВЦА, устанавливающий номенклатуру товара, количество и цену товара, количество упаковок, вес нетто и брутто — 1 экземпляр; * Сертификат происхождения, выданный местной торговой палатой — 1 экземпляр; * Упаковочный лист на Партию, с описанием упаковки — 1 экземпляр. | * AirWayBill — 1 copy; * The Seller’s Invoice, stating the range of products, the quantity and the price of the goods, the quantity of cases, net and gross weight — 1 copy; * Certificate of Origin, issued by the local Chamber of Commerce — 1 copy; * Packing List — 1 copy for a Container giving wise details. | 7. Претензии | 7. Claims | ПОКУПАТЕЛЬ может прислать своих представителей для осуществления контроля за качеством и количеством товара перед его упаковкой и отправкой. ПРОДАВЕЦ должен проинформировать ПОКУПАТЕЛЯ о готовности товара не позже, чем за 30 дней до упаковки и отправки. Претензии по качеству и количеству товара могут быть представлены если он не соответствует качеству и количеству, указанным в настоящем КОНТРАКТЕ. Претензии по качеству и количеству товара должны быть представлены в течение 4-х недель после прибытия товара на склад ПОКУПАТЕЛЯ. Перед представлением претензии по качеству и количеству товара ПОКУПАТЕЛЬ должен издать акт, подписанный компетентным нейтральным органом. В случае того, если качество и количество товара не соответствует условиям настоящего КОНТРАКТА любая претензия должна быть рассмотрена и удовлетворена между ПРОДАВЦОМ и ПОКУПАТЕЛЕМ по взаимному согласию. | The Buyer can send its representatives in order to control the quality and quantity of goods before the packing and the shipment are made. The Seller shall inform the Buyer of the goods’ readiness not later than 30 days before the packing and the shipment are made. Claims may be made for the quality and quantity of goods if they do not conform to the quality or quantity stipulated in the present Contract. Claims for the quality and quantity of the goods shall be laid within 4 weeks after the arrival of the goods to the Buyer’s stocks. Before laying claims for the quality and quantity of the goods the Buyer shall issue an act, signed by a competent neutral organization. In case the quality and quantity of the goods do not comply with the terms of the present Contract any claim thereof will be settled by the Buyer and The Seller with mutual understanding. | 8. Форс-Мажор | 8. Force Majeure | Если возникнут какие-либо обстоятельства, препятствующие полному или частичному выполнению Сторонами их соответствующих обязательств по настоящему КОНТРАКТУ, срок, установленный для выполнении таких обязательств должен быть продлён на срок действия этих обстоятельств.Если эти обстоятельства имеют продолжительность более чем 6 месяцев, любая сторона имеет право отказать в любом дальнейшем выполнении своих обязательств согласно настоящему КОНТРАКТУ. В этом случае ни одна из сторон не имеет право предъявлять требования другой стороне по возмещению какого-либо возможного ущерба. Сторона, для которой представляется невозможным выполнение своих обязательств по настоящему КОНТРАКТУ, должна в течение 1 недели известить другую сторону касательно начала, причин и последствий форс-мажорных обстоятельств.Сертификаты, выданные торговой палатой страны соответственно ПОКУПАТЕЛЯ или ПРОДАВЦЯ, являются достаточным доказательством таких обстоятельств и их продолжительности. | Shall any circumstances arise which prevent completion or partial fulfillment by any of the Parties of their respective obligations under the present Contract the time stipulated for the fulfillment of the obligations shall be extended for the period equal to that during which such circumstances remain in force.Shall the above circumstances continue to be enforced for more than 6 month, each Party have the right to refuse any further fulfillment of the obligations under the Contract. In this case neither of the Parties can have the right to make a demand upon the other Party for the compensation of any possible damages. The Party, for whom it becomes impossible to meet their obligations under the present Contract, shall within 1 week advise the other Party as regards the beginning, the cause and the cessation of the circumstances.The certificates issued by the respective Chamber of Commerce of the Seller’s or the Buyer’s country shall be sufficient proof of such circumstances and their duration. | 9. Арбитраж | 9. Arbitration | Все споры и противоречия, которые могут возникнуть из настоящего КОНТРАКТА или в связи с ним, подлежат разрешению в соответствии с законами Китая.Если какой-либо спор или противоречие возникает из настоящего КОНТРАКТА, стороны должны разрешать их путём переговоров. Если разрешение невозможно и стороны не пришли к соглашению в течение 3-х недель, одна из сторон направить спор в Арбитраж, известив об этом другую сторону заказным письмом в соответствии с правилами Арбитражного суда и Международной торговой палаты. Решение арбитража является окончательным и обязательным для обеих сторон. | All disputes and controversies, which may arise from the present Contract or in connection with the same, are to be settled according to the laws of China.If any dispute or controversy arises from the present Contract the Parties shall settle it by means of negotiations. Shall the settlement becomes impossible and the Parties do not come to an agreement within 3 weeks, one of the Parties may refer the dispute to Arbitration notifying the other Party by a registered letter according to the rules of the Arbitration Court of the International Chamber of Commerce. The arbitration decision is final and binding upon both Parties. | 10. Прочие условия | 10. Miscellaneous provisions | Ни одна из сторон не имеет права на передачу своих прав и обязательств по настоящему КОНТРАКТУ какой-либо третьей стороне без письменного согласия другой Стороны КОНТРАКТА. | Neither Party can be entitled to transfer their rights and obligations under the present Contract to any third Party without the written consent of the other Contract Party. | Какие-либо изменения или дополнения к настоящему КОНТРАКТУ будут иметь силу, если они осуществлены в письменной форме и должным образом подписаны обеими сторонами и будут составлять неотъемлемую часть настоящего КОНТРАКТА. | Any alterations and addenda to the present Contract shall be valid only if they are made in a written form and duly signed by both Parties and will constitute an integral part of the present Contract. | Все расходы и пошлины, а именно налоги, а также платежи, связанные с заключением и выполнением настоящего КОНТРАКТА, накопленные на территории Китая, должны быть оплачены ПРОДАВЦОМ, и, совершенные вне вышеуказанной территории, должны быть оплачены ПОКУПАТЕЛЕМ. | All expenses and duties namely, taxes and also fees connected with the conclusion and fulfillment of the present Contract collected on the territory of China shall be paid by the Seller and outside the above mentioned territory to be paid by the Buyer. | Настоящий КОНТРАКТ составлен и подписан в 2-х экземплярах на английском и русском языках, имеющих одинаковую силу. | The present Contract is drawn up and signed in two copies in English and Russian, both texts being equally valid. | ПРОДАВЕЦ получает копию на английском и русском языках, ПОКУПАТЕЛЬ получает копию на английском и русском языках. | The Seller has one copy in English and Russian the Buyer has one copy in English and Russian. | КОНТРАКТ вступает в силу на момент его подписания. | The Contract enters into force on the date of its signing. | Срок действия КОНТРАКТА – 31 января 2009 г. | Validity date of the Contract – 31.01.2009. |

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[ 1 ]. This information (in italics) is not mandatory in accordance with international trade practices. We consider this phenomenon, - typical for sale contracts where one or both parties belong to CIS countries, - as a sort of business bureaucracy atavism.
[ 2 ]. This is the case when the manufacturer has its own internationally certified test laboratory. In the other cases the third party (SGS, Lloyd, VERITAS, etc.) is issuing Certificates of Quality.…...

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