Samples good are used for formative sales contracts between the parties to the purchase and sale contracts. According to the sample sales contract, the seller is obliged to provide the same types of goods as the sample to the buyer. However, in practice, many disputes have occurred related to this issue. So, when signing and executing a sample contracts, what should businesses pay attention to? Let’s find out the article below with TNTP.
1. What is a sample good?
Sample goods are used as samples for production, processing, buying, and selling. In the international sale and purchase of goods, samples are used for form-based sales contracts between the subjects of the contract foreign trade. According to the Sample contracts and sale contract, the seller is obliged to provide the same type of goods as the confirmed and agreed with samples to the buyer.
2. Notes for businesses when performing a sample contracts
Causes of disputes over contracts for the sale and purchase of goods according to the form
One of the reasons for the dispute related to the sample of goods is that the parties do not trust the weather or climate when taking samples, saving samples, or preserving samples. Because sample quality can change under the influence of temperature and humidity, especially with chemicals such as petroleum coal.
Sampling process and procedures
The sampling procedure also needs the parties to comply with the principles witnessed by the 3-party shift: seller, buyer, intermediary representative other objectivity. The finished sample should be sealed and signed by the parties.
The sampling process also needs to be documented with a clear date and time, signed by the parties. This is 1 of the risks that businesses are very likely to encounter when buying and selling goods in a form that ignores this principle.
Commonly applied subjects of form-based contracts for the sale and purchase of goods
The commonly used sample purchase method applies to items with quality specifications that are less susceptible to fluctuations due to environmental impacts, difficult to standardize, which is difficult to describe as garments, nuts, ore, or petroleum, and for each item, the sampling quantity is also different.
It is not recommended to buy, sell goods, or process the production of difficult management goods or toxic and dangerous goods during the preservation of such goods.
Therefore, businesses need to pay attention to each item that applies this method accordingly.
3. Note when agreeing, compose a sample contracts
The period before signing the Sample contracts
Before the Parties sign a contract for the sale and purchase of goods according to the form, it is necessary to conduct the acceptance of the sample product. The seller and the buyer should make a written agreement on the process of handling and preserving goods, and comparative measures on goods according to the stored and goods produced. The conditions for acceptance of goods, because of which the delivery of goods and the transfer of ownership from the seller to the buyer are received. These agreements are the basis for the parties to detail, strictly, and fully ensure in the Purchase and Sale Contract.
The period after signing the Sample contracts
In the form-based contract for the sale and purchase of goods, there are clear criteria for the quality of the goods. If there are standards on goods being applied, it is also necessary to specify which standards apply.
For goods that must ensure 100% sample varieties, the seller must be obliged to deliver goods 100% of the sample goods agreed upon by the parties. In addition, for goods that do not need to ensure the same quality as 100% samples, the parties need to agree on a clause limiting the difference in the quality of goods in the Contract, if the goods provided by the seller exceed the permissible limit, then are considered to be in breach of contractual obligations.
Above is TNTP’s article on “Practical lessons for businesses from disputes over contracts for the sale and purchase of goods according to the form”. Hope the above article provides you with useful information for you.