International contract

The full body of the contract can be found in the Appendix 2. Here we provide some comments for the most important Contract articles:

Article	Comment
Choice of Incoterm	We are providing our Franchisee with the furniture as a part of our franchising agreement. As we are more experienced in the field and already have dealt with the operations related to international exporting of goods we are willing to take care of the shipment and the insurance. Therefore the CIF Incoterm was chosen to hold a better grasp on the shipment. We find the Dutch forwarders that we already dealt with to be more reliable and are ready to facilitate the task of transporting the goods for our partner who is a novice in the field.
Choice of terms of payment	The usage of the Letter of Credit facilitates the obtaining of the payment before the shipping. The upfront payment of 40% to be transferred within 14 days before the actual shipment is strictly necessary because the production of the product should be covered. 40% of the deal suits the most to cover the production costs for our Slovakian partner and the Administrative costs as well. And, according to standard practice, the rest of the payment is to be transferred after arrival to the port of destination against the Bill of Landing.
Choice of transportation arms and means	Shipping is the most reasonable means of transportation in this case, as soon as both in Rotterdam (where our warehouse is located) and Saint-Petersburg there is a huge international port. It is also reasonably cheaper that other alternatives and suits our case as there’s no high time constraint. Shipped in 20 feet container from Rotterdam to St. Petersburg within 12 days from the date of signing the agreement.
Proposals and rationales to use an international middleman	The middleman is not necessary in this case, because the present Contract is a logical part of the present franchising Agreement between two companies. No other middleman seems to fit in this situation.
Considerations on insurance	Insurance is part of the CIF incoterm and is included in the price Marine Cargo Insurance “A”-Clause: All risks of loss and damage to the cargoes, except of washing overboard, during loading and unloading and lightning. We have chosen to cover all the risks as we are more experienced in the field than our partner and it is in our interest that the goods are delivered safely as the contract is the part of the franchising agreement.
Considerations on packaging instructions	As the product consists of standard parts and is easy to assemble, it is more reasonable to transport it in a disassembled way with all the necessary instructions attached. The parts are to be packed in bubble wrap and put into cardboard boxes for safety reasons.

Дата добавления: 2015-08-18