Trang 1 Chapter 1: Negotiating Delivery 1. The five steps in Negotiating Delivery. To deal with problems arising if there is a delay or if delivery is not as planned the Buyer and the Seller should negotiate delivery systematically. That means making sure all foreseeable problems are discussed and approaches to solving such problems are agreed. An overview of the five negotiating steps is suggested to simplify discussion of the ideas and to avoid problems: Timing, Location, Transport, Risk Title and Insurance, Terms of Trade. 2. Timing: When must Delivery take place? - Good negotiators should mention a delivery date in negotiating the timing of an export deal and then other issues relating to coming into force, delay and compensation for delay. Delay might be classified into two categories, excusable and non-excusable. Excusable one involves a ‘grace period’ and is mostly subject to a force majeure provision. Any losses to the buyer caused by non-excusable delay must be compensated. The amount of compensation is usually set in advance and called ‘liquidated damages’ - Use a straightforward calendar date to name the delivery date: 15th September 2010, for example. The parties often plan for the contract to come into existence in two steps: the signature date and the date of coming into force. The date of coming into force is not usually a calendar date, but the date on which the last precondition is met. Common preconditions are: + Receipt of import and/ or export approval + Receipt of foreign exchange approval from a central bank + Issuance of a letter of credit or bank guarantee. + Making of a down-payment by the buyer + Issuance of an insurance policy + Issuance of a certificate of origin + Delivery by the buyer of plans, drawings or other documentation. - Negotiators may agree on a cut-off date: if the contract has not come into force within a certain time, then it becomes null and void. Coming Into Force This agreement shall come into force after execution by both parties on the date of the last necessary approval by the competent authorities in the country of the Seller and the Buyer. If the contract has not come into force within ninety days of execution, it shall become null and void. Trang 2 Điều khoản hiệu lực Thỏa thuận này sẽ có hiệu lực sau khi được thực hiện bởi cả hai bên vào ngày phê duyệt cần thiết cuối cùng của cơ quan có thẩm quyền tại nước người bán và người mua. Nếu hợp đồng không có hiệu lực trong vòng chín mươi ngày kể từ ngày thực hiện, nó sẽ trở nên vô hiệu. - The delivery date is normally fixed for a certain number of days after the contract has come into force. The date of delivery shall be twenty-eight days after the date of coming to force of the contract. Ngày giao hàng sẽ là 28 ngày sau ngày hợp đồng có hiệu lực - Time is of the essence of the contract. If the time is not kept, the buyer has the right to return the goods and refuse payment. Time is and shall be of the essence of the contract Thời gian là và sẽ là vấn đề cốt lõi của hợp đồng. - Excused Delay and Grace Period: For each week of late delivery the Seller shall pay the Buyer 0.1 % of the contract price. Đối với mỗi tuần giao hàng chậm chễ người bán sẽ phải trả người mua 0.1 % trị giá hợp đồng. A grace period is the time exceeding the deadline for an obligation during which a late penalty that would have been imposed is waived. If delivery is not effected within one month of the agreed delivery date, then the Seller shall pay the Buyer 0.1 % of the contract price. Nếu giao hàng không được thực hiện trong vòng 1 tháng kể từ ngày giao hàng đã được thỏa thuận thì người bán sẽ phải trả cho người mua 0.1% trị giá hợp đồng. Trang 3 Sometimes the exporter can’t deliver the goods on time because of natural disasters called ‘acts of God’, which is unavoidable. It is the force majeure, which is negotiable. The parties can decide what excuses and what does not excuse the performance in the contract. If either party is prevented from, or delayed in,

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