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Conclusion of foreign economic agreement in Ukraine

When making a international trade transactions you cannot avoid paperwork. An oral agreement does not have any legal validity and in case of disagreement between the parties it would take a lot of time, energy and money on litigation. When making a written contract it is important to evaluate all the risks, that’s what foreign economic agreement is for. This document has a standard form and is to be produced when crossing the border at customs office with accordance to Ukrainian laws.

Drawing up a foreign economic contract is one of most important parts of foreign economic operations. The contract regulates rights and obligations of the parties that are mandatory, the conditions of external economic environment and liabilities of the parties for failure to fulfil the provisions of the agreement.

A well-designed cantract leaves no questions like “what to do next?” when it comes to some emergency situation. It contains envisaged every possible risks and suggests prescribed scenarios.

Clauses of foreign economic contract

• Preamble – a summary of the document and its most important part
• Subject of contract. Product or service
• Contract amount
• Terms and conditions of delivery
• Terms of payments – it is important to describe the terms of payment clearly and correctly, as well as enter the amount of the fine in case of failure to pay the amount in full
• Delivery (acceptance) of goods
• Packaging, labeling
• Responsibilities of the parties. One of the important points, it is important to consult with experts in the field of law when drawing it up
• Force Majeure
• Sanctions and complaints
• Arbitration
• Duration of the contract
• Legal addresses, signatures, seals of participants, details of counterparties

As we have already stressed, the terms of the foreign economic agreement are of great importance in the further development. Having no legal education, it is difficult to foresee all the risks and pitfalls when drawing up a transaction. Experienced experts of the «ODEMARA-INTER» company will assist you in drawing up a foreign economic contract and are ready to consult you on any issues at a convenient time.