In international trade, contracts are not only the basis of transactions, but also legal guarantees for transactions to go smoothly. Traps that may be hidden in contractual terms require special caution to prevent disadvantages in trade disputes.

In early 2022, Exporting Enterprise A faced a problem of 10% buyer deduction due to contractual overweight errors. In this case, while Company A informed the buyer of errors in the contract by email and was confirmed, the text of the contract was not updated, which became the basis for the buyer to submit a deduction. In addition to the additional terms of the contract not noticed by Company A, there was a severe punishment for delayed shipment, which eventually caused Enterprise A to fall into the passive process of collection.

Review of Contract Clauses:At the same time, each clause must be carefully reviewed, especially the additional clauses in the formal contract. Once the other party finds that the clause is extremely unfavorable to the other party or even impossible to fulfill, it should be proposed immediately and strive for adjustment or deletion.
Risk prevention measures:Companies should include clauses in their contracts that protect their own interests, such as property rights reservations, quality objection periods, etc., to prevent potential risks.
Execution of Contracts and Changes:In the process of performing the contract, if actual circumstances are found to be inconsistent with the agreement, the contract should be amended in writing in a timely manner and the exchange records should be kept as proof of performance.

Strengthening of communication:During the execution of the contract, communication with the buyer should be strengthened to ensure that both parties have the same understanding of the terms of the contract and can be solved in a timely manner if problems arise.
Securing the evidence:Keeping all written documents related to the execution of the contract, such as mail, conference records, etc., will be key evidence for resolving disputes.
The legal path:When the dispute cannot be resolved through consultation, the dispute may be resolved by legal means in accordance with the agreement, protecting its rights and interests from infringement.

The importance of contracts in international trade is obvious.Exporting enterprises should, at the beginning of signing the contract, pay great attention to the review of the terms of the contract, especially the additional terms, and strictly prevent potential risks.In the process of performing the contract, for any inconsistencies with the contract, should be confirmed in writing in a timely manner to ensure that their rights and interests are fully protected.