#NegociatePriceandPayment Flashcards Preview

English Contract > #NegociatePriceandPayment > Flashcards

Flashcards in #NegociatePriceandPayment Deck (14)
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1
Q

What are common methods of payment in international trade?

A

o/c w/ no security
o/c w/ security by export credit insurance
o/c w/ secured by payment guarantee
Payment by L/C

2
Q

What are method of payment in small purchases?

A

COD( Cash on Delivery)
CAI( Cash against Invoice)
CWO (Cash with order)

3
Q

What method makes late payment impossible?

A

confirmed irrevocable

4
Q

When delay is excused?

A
  • happens in grace period

- caused by Force Majeure

5
Q

What does insurance premium depend on?

A

The credit worthiness of Buyer

Stability of Buyer’s country and so on

6
Q

What is the guarantee triangle?

A

Relationship of the principal, guaranters and beneficiary

7
Q

What are business situations commonly use guanrantee?

A
  • Non-payment
  • Devocation
  • Non-performance
  • Losing prepayment
8
Q

What are the guarantees used in the following biz situations?

A

Payment guarantee
Tender guarantee
Performance guarantee
Prepayment guarantee

9
Q

Name types of L/C

A
irrevocable - revocable
confirmed - 
resolving
at-sight
back to back
standby
revolving
10
Q

What is export credit insurance?

A

payment guarantee from third party, covering risk of non - payment

11
Q

What is a bank guarantee?

A

.

12
Q

Disting Export Credit Insurance and Bank gurantee?

A

.

13
Q

What are some limits of Export Credit Insurance?

A

.

14
Q

Disting Irrevocable and Revocable LC

A

.