important points for drafting contracts cs professional drafting notes

Posted on 13-05-2016        By ADMIN

important points for drafting contracts cs professional drafting notes What are the important points that should be taken into consideration while drafting contracts ? Important points in regard to drafting of contracts 1. Description of Parties to the Contract : Parties to the contract should properly be defined by giving their names, status and address. 2. Legal Nature of the Contract : In the title or in the introductory part of the contract, the parties should clearly indicate the legal nature of the contract as to whether it is a sale/purchase contract or a contract for technical assistance, etc. so as to avoid any doubt as regards the nature of the contract and the legal position of the parties thereunder. 3. Licences and Permits : Provision in international trade contracts as to which party would be responsible for obtaining export/import licences and the effects of delay, refusal or withdrawal of a license by Government authority, etc. 4. Taxes, Duties and Charges : A provision regarding the responsibility for payment of taxes, duties and other charges, if any, may also be included in the contract. In international contracts, it is generally provided that the seller would be responsible for taxes, duties and charges levied in the country of export and the buyer with such charges levied in the country of import. 5. Quality, Quantity and Inspection of Goods : Quality of the goods is very important to the buyer in a sale-purchase contract and it is in this area that a number of disputes arise and, therefore, it is necessary to include a suitable provision relating to the description and inspection of the quality and quantity of the goods in the contract. 6. Packing : A proper stipulation regarding packaging of the goods according to the nature of the merchandise should be included in the contract. 7. Shipment of the Goods : It is desirable to stipulate precise particulars regarding the rights and duties of the parties towards shipment of the goods, i.e., the time, date and port of shipment, name of the ship and other ship particulars. 8. Insurance : A provision regarding insurance of the merchandise is also made in the contract. 9. Documentation : If the goods are of scientific or technical nature, a provision in the contract may be made as to whether the technical documentation supplied by the seller will become the property of the buyer or it has to be returned to the seller after a stipulated time. 10. Guarantee : A guarantee clause may be provided to make the seller responsible for the defects appearing in the goods during the period of the guarantee. 11. Passing of the Property and Passing of the Risks ......................................

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