Session on Legalities for Export Contracts organised at Ludhiana
Author(s): City Air Newsphoto: city air news Ludhiana, October 27, 2016: Federation of Indian Export Organizations (FIEO) Ludhiana Chapter organised an “Interactive Session on Precautions for Export Contracts & Dispute Resolution”. Ms...
Ludhiana, October 27, 2016: Federation of Indian Export Organizations (FIEO) Ludhiana Chapter organised an “Interactive Session on Precautions for Export Contracts & Dispute Resolution”.
Ms Aparna Jain, Director, Knowledgentia Consultants from New Delhi was the key note speaker during the session. The objective of the session was to spread awareness on key parameters or factors those should be considered for drafting a business contracts between two organizations i.e. a buyer and a seller, whether they are dealing for the first time or are already dealing with each other.
While addressing the participating delegates during the session, Ms Aparna Jain said that, “The business contract between a buyer & a seller or between two dealing organizations should be comprised of all the necessary terms and conditions. In case of a new deal, all legalities involved such as liabilities / responsibilities for both the parties, contract term & duration etc should be thoroughly drafted in the contract, as this will help in hassle free operations with less complexities both for the organization and for its systems. In case of overseas trade, written and legal contracts/agreements are strongly recommended. The dealing organization should mutually settle with each other on the product designs, quality, total contract value in words and figures and in a specific currency and bifurcation of applicable taxes”.
She also added that, “A business contract drafted with consideration of most of the possible factors whether bigger or smaller are good, help in reducing future conflicts between two parties, especially at the time when the buyer receive his ordered consignment & releases the payment. Another important factor which most of the companies underestimate in a contract, is the Standard/ Quality Check parameters, this is an important factor especially in case of an overseas consignment where the consignment will be handled and managed at multiple levels before & after shipping. The timing or location and other parameters of Quality Check should be mutually agreed between parties, such as - when the quality checks are to be performed i.e. at traders or manufacturers end or site, before packing the order for shipping or at the time when the buyers receives and also the mutually agreed testing agency. This mutually agreed & timely quality checks minimizes the rejection of consignment at buyers end. The presence of dispute resolution clause and jurisdiction for dispute resolution should also be included in the contract, this will help in settlement of dispute, in case if it arises due to certain misunderstanding or interpretation of few factors between two parties at any time”.
The session received a very positive response as senior officials from prominent organization attended the session.