What contract conditions should be reviewed when concluding a trade contract? Should I receive customs consultation?

Hello. This is Daeryun Law Firm providing customs consultation.

The contract conditions that must be reviewed when concluding a trade contract are as follows.

1. Goods

The type, quantity, quality, specifications, and packaging method of the goods are very important factors.

If there is no specific description of the goods in the contract, unnecessary disputes may arise after the transaction.

2. Price

The unit price, total amount, and payment timing and conditions must be clearly determined.

Also, the criteria for determining the price must be clear, and price adjustment conditions according to exchange rate fluctuations must be set.

3. Delivery Conditions

Delivery conditions stipulate the responsibility for shipment of goods and cost sharing.

4. Payment Conditions

Payment conditions are an important part of trade transactions, and the payment method (letter of credit, prepayment, deferred payment, etc.) must be specifically specified.

The exporter must set a payment method that is favorable to themselves.

5. Delivery Date Conditions

The delivery date is an element that must be specified in the contract.

The delivery date must be accurately stated, and penalties for delays must be set to clarify the responsibility between both parties.

If delivery is delayed, penalties may be imposed, so this must be discussed in advance and specifically included in the contract.

6. Transportation and Insurance

The transportation method, insurance amount, and insurance coverage must be clearly specified.

7. Taxes and Customs

In trade contracts, it must be clear who will bear taxes and customs duties.

8. Termination and Modification of Contract

It is important to clearly establish conditions for contract termination or modification in advance.

Since the contract content is most important when legal risks arise in the future for trade contracts, we recommend requesting customs consultation from a specialist attorney from the time of contract conclusion to prevent legal risks that may arise.

Daeryun Law Firm has customs attorneys as well as customs specialist members who have obtained customs broker qualifications who review client cases and present strategies.