Step 4: The parties • Identity of the Buyer • Names in the Contract • Notices • Assignment of Rights and Delegation of Duties.
1. Identity of the Buyer • Studying the exact form of the name of the Buyer’s company. • Confirming existence of Buyer’s company. • Making sure that the officer signing the contract has authority to do it. • Checking the authenticity of the signature.
1. Identity of the Buyer Who can help the exporter? • Commercial attaché • Consulate • Notary • Chambers of commerce • Other available resources, such as Dun and Bradstreet,….
1. Identity of the Buyer • Note: Parent companies are not responsible for the debts of their subsidiaries => Be careful to not to sign contracts with undercapitalized subsidiaries.
2. Names in the Contract • The full, registered name of the company should appear at the head of the contract + a few words of description follow. • Using “hereinafter called + short form” to save space and prevents legal problems caused by mistyping names.
3. Notices • What is a notice? Any formal notification required by the contract • The Notice provision: - Gives the official mailing addresses - Usually stipulates how notices must be delivered.
4. Assignment of Rights and Delegation ofDuties • Most applicable laws allow for right transfer, however, strictly limit delegation of duties. • In international contract, try to exclude both assignment of rights and delegation of duties without written consent. • Be extremely careful to read the text of the assignment clause closely.