Sales Contract (한중간)

PREFACE

Since the normalization of diplomatic relations between neighbors Korea and China in 1992, the trade relations have developed in a desired direction and the volume of trade has increased rapidly.

In order to promote and facilitate the development of bilateral trade, the Korea-China Trade Contract Terms Study Committee and the China Foreign Trade Contract Terms Study Committee were respectively selected to be responsible for the task of preparing Model Terms of Contracts for Sale of Goods ( hereinafter referred to as the "Model Terms" ). The Model Terms, intended to be used by Korean and Chinese trading firms and corporations in formulating their own standard contracts, were completed in December,1996.

The Model Terms are based on the current effective laws, the international treaties and the international trade usages acceded by the two countries, as well as Incoterms, 1990 and Uniform Customs and Practice for Documentary Credits, 1993 Revision.

In order to properly use the Model Terms, instructions are given as follows :

1. The Model Terms are intended to be used for the drafting of contracts for the sale of

goods between the two countries' trading firms and corporations.

2. The Model Terms are intended to provide a sample of contract terms and conditions.

They are not intended to constitute a specified contract.

3. Some of the Model Terms provide one or more alternatives to accommodate different

kinds of transactions and various categories of goods.

4. When concluding specified contracts, each trading firm and corporation in both nations

may modify the provisions of the Model Terms and incorporate new provisions into their contracts according to the nature of the transaction or goods.

5. The Model Terms provide for maritime transportation,however, if other means of

transportation are to be employed, the relevant provisions in the Model Terms should be modified and new provisions should be incorporated into the contracts.

The Korea-China Trade Contract Terms Study Committee and the China Foreign Trade Contract Terms Study Committee hope that Korean and Chinese trading firms and corporations fully comprehend the purport and meaning of the Model Terms and are willing to use the Model Terms. We also look forward to receiving opinions and proposals so as to make further improvement to the Model Terms in the future.

Korea-China Trade China Foreign Trade

Contract Terms Study Contract Terms Study

Committee Committee

By By

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