II. An Overview of International Trade Contract

2.1 The concept of the international trade contract

International trade contract is the parties to different countries (regions) through friendly consultations, in accordance with certain trading conditions, the sale of a commodity agreement reached. This agreement is also called a buying and selling contract. It is established in accordance with the provisions of the international trade practice or state law accepted by both the buyer and the seller. The contract not only provides for the sale of goods, but also the provisions of the rights and obligations of both parties are binding on both parties. The contracts for the international trade in China is also known foreign trade contracts or import and export contracts, namely business in the rights and obligations of the parties in different countries or regions on the buying and selling of goods of a written agreement. Our country’s trade contract also has foreign import and export trade contract, written agreement of the parties to the contract of sale of goods in different countries or regions by the parties to the rights and obligations of the business. It is established to accept international trade practices or legal basis on the seller and the buyer. Such contracts are known as China’s import and export trade contracts or foreign trade contracts. “It is established on the basis of the seller and the buyer to accept. Meanwhile, due  to  its  foreign  transaction nature, such contract usually needs two versions— English  and  Chinese,  for  which  the translation is often needed ”(Li Kexing 229).

Contracts are classified in different ways, mainly in the following ways: 1.According to the contract: the seller to make the classification of producer known as the “sales contract”, the buyer; produced, known as the “purchase contract”.2. According to the content of the contract: simplified classification for sales contract and sales confirmation. In accordance with the terms used in the contract price classification: can be pided into the “FOB contract”, “CIF contract” and the arrival of goods, etc.

2.2 Structural features of international trade contract

The format of international trade contract is uniform and constant, and its structure is characterized by its rigidity and breakdown. International trade contract can be pided into three parts: head, body, tail, and in addition, the head can be pided in 2 parts the first part is the graduation ceremony or the premise. It introduces the signing of the contract and the time, and the name of the contract party, the business and legal basis, and two sides incorporated. The second part of the head is called the terms and conditions, also known as the solo or the preface. Terms often exist in the middle or the end of the contract; it is the core part of the contract. Because the content of the contract is the most important, when a person is drafted or the contract must pay attention to the accuracy of the contract. Second is the content of the contract, including special provisions and general provisions of the contract, the provisions of the contract and rights and obligations of parties defined.

“The main clauses of the international trade contract include two parts of mandatory clauses and facilities，and compulsory provisions include the following 10 articles” (Song Lei 234):

(1) The nationality, name and main business place;

(2) Place and date;

(3) The main scope and types;

(4) The subject matter of the specifications，quality and quantity standard;

(5) Performance period, manner and place;

(6) Terms of the price, amount and payment methods and all incidental expenses;

(7) Whether this contract can be transferred. If this is the case, the terms of the transfer will be described;

(8) Breach of contract and other liability compensation;

(9) Dispute resolution;

(10) The contract language and its effectiveness;