International contract

Extract

[...] Exceptions for misoperation or normal wear are typical and fair. Where the article could provide stronger coverage is Article 24.3 regarding the process for notifying and remedying defects. While SILEC must fix issues at its cost upon notice, the 15-day response window is tight and could be extended. Additionally, directly deducting repair expenses plus 15% from the performance bond if SILEC fails to act raises concerns. A more balanced approach would be issuing a debit note for verification and later payment rather than unilateral withholding. [...]

[...] International contract Question 1 - Are the payment conditions set forth in article 7 satisfactory to the Seller? What changes do you suggest? Upon further review of Article 7 concerning the terms of payment under the proposed contract, I propose the following modifications to more securely safeguard SILEC CABLES' financial interests over the course of the project: Rather than designating an "advise letter of credit" as currently stipulated, I recommend converting the envisaged letter of credit to a "confirmed" format. [...]

[...] Although splitting this retention amount into two 50% installments delays full liquidation recovery for SILEC, the overall retention model itself seems a conventional approach acceptable within this commercial framework. While certain payment aspects in Article 7 appear reasonable, converting the letter of credit to a confirmed format or stipulating stricter advised timelines would better safeguard SILEC's position. Advance, staging and retention terms seem standard industry practices for SILEC commercially. Question Article 12 provides for the supply of certain documents by the seller. Do you accept these documents? [...]

[...] Question Analyze article 24 concerning the warranty conditions. Do they protect the seller's interests? Upon close inspection of Article 24 concerning the warranty conditions provided in the proposed contract, I find that overall, the article offers reasonable protections for SILEC CABLES' interests as the seller but could still be enhanced in certain areas. Specifying a one-year warranty period from the date of provisional acceptance aligns with common practice, as it sets a defined timeline for the seller to address defects that emerge under normal usage conditions. [...]

[...] The packing list enhances shipment traceability. Requirements for multiple certified copies of each and inclusion of necessary shipment details seem appropriate. Test certificates are also regularly included to evidence goods meeting agreed technical specifications. The only minor point of clarity would be specifying explicitly that test certificates must show conformity to specifications defined elsewhere in the contract. Procedures for sending document sets directly to both the buyer and nominated correspondent bank handling the letter of credit match standard industry practices for facilitating smooth payments. [...]