When using collection terms, the conditions for delivery of documents, the buyer’s payment or acceptance responsibility and the payment period should be clearly stated in the contract.
1. D/P at sight
For example, Upon first presentation, the Buyers shall duly make the payment against documentary draft made out to the Buyers at sight by the Sellers. The shipping documents are to be delivered against payment only.
2. D/P after sight
For example, The Buyers shall duly accept the documentary draft drawn by the Sellers at 30 days sight upon first presentation and make due payment on its maturity. The shipping documents are to be delivered against payment only.
3. D/A-Documentary against Acceptance
For example, The Buyers shall duly accept the documentary draft made out to the Sellers at 30 days sight upon first presentation and make due payment on its maturity. The shipping documents are to be delivered against payment only. Buyers at 30 days sight upon first presentation and make due payment on its maturity. The shipping documents are to be delivered against acceptance.