Negotiation and determination of product name clause
When negotiating and signing an import and export contract, the buyer and seller must clearly and specifically specify the name of the goods.
(I) Product name
The product name clause is an indispensable and major trading condition in a sales contract. It is crucial to list the specific name of the transaction goods, which is binding on both parties to the trade. If the goods delivered by the seller do not conform to the agreed product name, the buyer has the right to claim damages, or even refuse to accept the goods or cancel the contract. At this time, the product name clause is a good basis.
(II) Basic content of the product name clause
The product name clause is one of the main clauses in the goods import contract. There is no unified format. Usually, the name of the transaction goods between the two parties is listed under the title of “Product Name” or “Name of Commodity” in the contract. Some contracts also contain a sentence at the beginning that the two parties agree to buy and sell a certain product. Common stipulation methods include:
(1) Indicate “Purchase Contract of xx” at the beginning of the contract; if the contract is drafted by an overseas seller, the beginning of the contract may be “Sales Contract of_________”.
(2) Write a sentence at the beginning of the contract stating that the two parties agree to buy and sell a certain commodity, such as “The Seller agrees to sell and the Buyer agrees to buy _________(commodity name) according to the terms and conditions stated below”. This stipulation method is common in contracts signed by two parties for the first transaction.
(3) Use a format to stipulate various terms including the product name clause. Generally, the name of the imported commodity is listed under the heading of “Name of Commodity”. Some also combine the product name with a general description of the product variety, grade or model in one column and list it under the heading of “Description of goods”.