One of the biggest risks in international trade is entering into contracts that are incomplete, ambiguous, or improperly structured. Many of the disputes faced by exporters stem from mistakes or omissions related to delivery terms, payment methods, quality requirements, and jurisdiction or dispute-resolution clauses.
This article highlights the essential elements that must be considered when drafting an export contract.
In addition, for each of these key elements, we will publish dedicated articles that explain -through practical, real-world examples- the risks that may arise, the most common disputes encountered in practice, and how these risks can be minimised through robust contract drafting techniques.
In this series, we will examine a wide range of critical issues that frequently lead to disputes in international trade. These include the liabilities arising from incorrectly selected Incoterms, hidden risks embedded in payment methods, disputes triggered by insufficient technical specifications, defective-goods procedures, delay-damage calculations, and the commercial impact of choosing arbitration or litigation. Each topic will be supported with practical examples and industry-based insights to help exporters structure safer, clearer, and internationally compliant contracts.
This series is designed to serve as a comprehensive guide to help exporters structure their contracts in a safer, more predictable, and internationally compliant manner.
9 Critical Points to Consider in Export Contracts
- Proper application of Incoterms 2020
- Payment methods (letter of credit, advance payment, cash against documents, open account)
- Product technical specifications and quality criteria
- Pricing, exchange rate risk, and cost allocation
- Delay damages and liability for defective goods
- Warranty and after-sales service obligations
- Governing law & jurisdiction/arbitration
- Contract language
- Force majeure and risk management