Agreed Terms and Definitions
- ALTERNATIVE CORPORATE BANK ACCOUNTS – Due to different banking rules and practices around the world, different banking instruments are accepted by some banks and some countries and are not accepted by others. Depending on the financial instrument finally issued by the buyer to the seller, the seller may, if necessary, use a bank other than the one originally assigned by the Seller to facilitate the transaction.
- CNF – COST & FREIGHT – The seller must clear the goods for export and pay the costs and freight in order to deliver the goods to the designated destination according to the Sales Contract. This also applies to transportation by water (sea or inland transport).
- A CONFIRMED LETTER OF CREDIT is a Letter of Credit in which the confirming bank guaranteed payment under the letter of credit, subject to compliance with all the conditions of the letter of credit. With a confirmed letter of credit, the payment risk is assumed by the confirming bank, as well as the issuing bank, thereby providing greater protection for the exporter.
- CONFIRMED BANK GUARANTEE – A confirmed bank guarantee is guaranteed by the confirming bank, subject to the conditions of the confirmed BG.
- CONFIRMING BANK – A Bank that, at the request of the issuing bank, adds its confirmation to the letter of credit. At the same time, the confirming bank undertakes to make a payment to the exporter upon submission of documents under the letter of credit, subject to compliance with all the conditions of the letter of credit.
- A DRAFT CONTRACT is an initial contract in which the seller lists all the initial points of understanding and conditions. Any proposed changes that may be required can be inserted into this document for verification by the seller or buyer. Initialization, signing and printing of the draft contract mean only an initial understanding of the terms and conditions and are not considered mandatory. After all the conditions are agreed, the final purchase and sale agreement (S&P Contract) will be signed.
- FINAL SALE AND PURCHASE AGREEMENT – This document will be issued after the final agreement between the buyer and the seller of the terms of the Draft Contract. By initialing, signing and printing this document, both parties declare that they have full corporate powers, certify, represent and guarantee that each of them can fulfill the requirements of this agreement and, accordingly, provide the products and facilities mentioned therein on time and in accordance with the terms.