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How to distribute the risks between the parties to the FEA contract?

Supporting exporters is now a public policy priority. Kharkiv region is not left out either. The Department for Improving the Competitiveness of the Region of the Kharkiv Regional State Administration organized the project "Alphabet of Exporter". This is a series of seminars where exporters can talk to experts of various fields and get practical advice, as well as share export experiences.

On April 25, Sviatoslav Bartosh, a partner at Bargen Law Firm, was one of the experts at such a seminar. They talked about the distribution of risks between the parties to the contract.

Sviatoslav Bartosh called on the participants to take a very responsible approach to concluding a foreign trade contract. Miscalculations made at the stage of concluding the contract usually become noticeable only when deliveries have already begun and something went wrong: the container sank during loading, there were claims to the quality of the delivered goods or the buyer changed his mind to pay. It is at such moments that it is important to have clear algorithms of actions specified in the contract.

The distribution of risks of accidental destruction or damage of goods in the process of its loading / unloading and delivery is regulated by the rules of Incoterms. Sviatoslav gave the seminar participants practical advice on how to use the terms Incoterms in their foreign trade operations.

Sviatoslav Bartosh also advised exporters to pay attention to those provisions of the contract that relate to the quality of the goods: “It is necessary to clearly describe the requirements for the quality of the goods supplied. Identify a document that will confirm compliance with such requirements. Pay attention to the sampling process to confirm the quality of the product. Also agree with the counterparty on a clear and effective algorithm for resolving quality disputes. After all, it often happens that unscrupulous partners speculate on the quality of the goods in order to evade payment or reduce the price of the goods. "

You can get acquainted with Svyatoslav's presentation by the link:


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