《國際貿易實務》chapter 11 business negotiation and conclusion of contract

Chapter11

BusinessNegotiationand

ConclusionoftheContract

LearningObjectives

Whataretheindispensableprocessestoabusinessnegotiation?Howtoestablishalawfulcontract?

ContentsofBusinessNegotiations(1)thesubjectmatterofthecontract,includingthename,quality,quantity,andpackingofthegoods;

(2)thepriceofthegoods;

(3)theseller’sliabilitiesofmakingdeliveryofthegoods.

(4)thebuyer’sliabilitiesoftakingdeliveryofthegoodsandmakingpayment.;

(5)themethodstopreventtheoccurrenceofdisputesandmethodstosettledisputesincasethereisany(includingcommodityinspection,claims,forcemajeure,andarbitration,etc.).FormsofBusinessNegotiations

VerbalnegotiationWrittennegotiationGeneralProcedureofBusinessnegotiation

enquiry,offer,counter-offer,acceptance(1)enquiryBusinessnegotiationsininternationaltradeusuallystartwithanenquirybyanoverseasbuyertoaseller,inquiringforsalesinformation.(2)offerAnofferisnormallymadeinresponsetoanenquiry.Firmoffervs.non-firmofferWhatmakesafirmoffer?Afirmoffermustsatisfythefollowingrequisiteconditions:

(1)Itmustbesenttooneormorespecificpersons;

(2)Thecontentsoftheoffermustbedefinite,thatis,theconditionsgivenmustbecomplete,clearandfinal.Afirmoffershouldincludeatleastthreespecificconditions:thename,thequantity,thepriceofthecommodity;

(3)Itmustindicatethatonceithasbeenunconditionallyacceptedbytheofferedwithinitsvalidity,theofferisbindingonbothparties;

(4)Ittakeseffectonlyaftertheofferreachestheofferee.Itisalwaysnecessarytostatethespecifictimezonewhenspecifyingthetimeofarrival.(3)Counter-offer

Acounter-offerisvirtuallyapartialrejectionoftheoriginalofferandalsoacounterproposalinitiatedbythebuyerortheofferee.(4)Acceptance

Inbusinesslaw,anacceptanceistheassenttothetermsofanofferorcounter-offerrequiredbeforeacontractcanbevalid.Itmeansthatthebuyerandthesellerhavecometoanagreementonthesale.Itisbindingonbothparties.

Alegallyvalidacceptancemustmeetthefollowingrequirements:(1)Theacceptancemustbemadebytheofferee.(2)Theacceptancemustbeshowneitherbywordsoractionsorinwrittenform.

(3)Theacceptancemustreachtheofferorwithinthetimeofvalidityoftheoffer.(4)Theacceptancemustbeunconditional.Itshouldbeanunreservedassenttoallthetermsdesignatedintheoffer.Inprinciple,ifadditions,modificationsorlimitationstotheofferaremade,itwillbeacounter-offerandnotanacceptance.ContractConclusion

Acontractisanagreementthatcreatesanobligation,thatisbinding,legallyenforceableagreementbetweentwoormorecompetentpar