Question

XYZ Manufacturing is negotiating an international deal with Car Parts of Belgium Inc. to provide car parts to them. The parts will be shipped from Canada to Belgium via freightliner ship.

1. What items to they need to include in their contract?
2. What concerns will each of the party’s have?

Answer 1

Solution:

In any business deal, the contract is the most important aspect that binds the deal together. There are several terms of the contract that should be honored by both the parties and they should follow the contract as per the contract terms. The contract terms include legal, regulatory, business-related and order specific pointers that are essential in carrying out the contract effectively. This is why contracts are crucial in any business deal.

The contract should first include all the necessary terms of the business deals. These terms should be clearly stated as they are the primary terms of the contract. Then one must include legal and regulatory terms to manage the regulatory landscape of the deal. The deal should also include the shipment ownership details which should state the points where the transfer of ownership will take place to ensure that the losses are borne by at least one party who is owning the shipment at that particular time. Hence, these are some of the important aspects one must include in the contract.

One should also include ither important aspects that shape the legality and validity ofthecontract. Each party bound by the contract will habe concerns over the shipment of the parts, the transfer in ownership of the shipment, excise duties to be paid to the officials to release the shipment from local authorities. Hence, this is a cumbersome process and takes time. HEnce, these are the major concerns of both the parties bound by the contract.