International payment 4 th Edition World Trade Press
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- Điều hướng trang này:
- Contract Provision
- Notes on Insurance
| Contract Provision
• When a buyer and seller agree to use a documentary credit for payment in the purchase/sale of goods, they are well-advised to insert a payment provision in their contract to that effect. The following is a sample contract provision. • PAYMENT: To secure payment, the BUYER NAME shall have ISSUING BANK NAME open an IRREVOCABLE documentary credit naming SELLER as beneficiary. • The documentary credit is to be CONFIRMED by CONFIRMING BANK NAME. The documentary credit must remain valid for NUMBER OF MONTHS after issuance and be available AT SIGHT against presentation of the following documents: 1. ... 2. ... 3. etc. 20 Contract Provision • The cost of the credit is to be paid by BUYER NAME. • The credit shall be subject to the Uniform Customs and Practice for Documentary Credits (1993 Revision), International Chamber of Commerce, Publication Number 500. • The items in small capital letters are the variables. As with all legal matters it is best to consult with an experienced attorney for exact wording to best reflect your individual transaction. 21 Notes on Insurance 1. If the documentary credit stipulates CIF (Cost Insurance and Freight) or CIP (Cost and Insurance Paid) terms the seller is responsible for providing insurance against damage or loss to the shipment. More specifically, the seller is responsible for presenting an insurance document with the document package that evidences insurance cover. 2. The credit should name the specific type of insurance coverage required and any additional risks that are to be covered. The terms "usual risks" or "customary risks" should not be used as they will be ignored by the banks. The buyer should be specific as to what insurance document is required, the dates of coverage, and the amount of coverage. 22 |