The contract signing processAccording to the following mini-dialogues, can you tell when could we sign the contract? (1)A: Good morning. Can we sign the contract today?B: Im sorry. As some points concerning the contract have not yet been settled, negotiation has to be continued before the contract is signed.A: It seems that we have to go on with our negotiation. So, whats the problem?(2)A: I have had a close look at the English version of our contract.B: Is there anything unclear or missing?A: Oh, yes. I think before signing a contract it is better to see whether the terms both parties agree on have been all incorporated in the contract and to have a good understanding of all the clauses in the contract in order to avoid disputes over some minor points in the future.B: You are perfectly right. So, whats wrong with the contract? A: Everything seems all right except some minor points. First of all, .Once all the terms have been agreed on, the contract is going to be signedIn the following mini-dialogue, can we get a brief view of what items are included in a contract? A: We have finally reached an agreement on all the terms of the contract. I think its time for us to return to the first article: The Scope of the Contract.B: Yes. Since this article acts as a summary for company managers who have not been present to the negotiation but will implement this contract, we should pay careful attention to the wording so that what has been agreed upon in the discussion of the contract is properly reflected.In the following mini-dialogue, can we get a brief view of what items are included in a contract? A: Absolutely right. I think in this article the following should be included: the name of the contract product, the nature of the license, product specifications, the supply of technical information, sales territory, supply of equipment, technical training and service. I think that covers the major items.B: I think wed better review the items in the contract one by one. Definition of a ContractA contract, in the simplest definition, is a promise enforceable by law. The promise may be to do something or to refrain from doing something. The making of a contract requires the mutual assent of two or more persons, one of them ordinarily making an offer and another accepting. If one of the parties fails to keep the promise, the other is entitled to legal recourse against him. The law of contracts has to do with such questions as whether a contract exists, what the meaning of it is, whether a contract has been broken, and what compensation is due to the injured party.In other words, a contract is based on agreement, and agreement arises from offer and acceptance. One person makes an offer; and another person accepts the offer. Thus, there is a contract. More often than not, contracts can be made verballya verbal contract. Both parties will live up to their words. But, some contracts require certain formalities. For large or important deals, formal contracts should be written with detailed terms and conditions agreed upon by the parties concerned.Hints for Contractors All the terms and conditions stated in the contract should be clear and generally accepted according to international practice; All the clauses in the contract should be in conformity with rules and regulations in force in the countries concerned; Read carefully the wording of the contract before signing; Avoid typing errors, crossed-out words and word-division; Use pens for signature.Contract is a formal agreement usually in writing, having the force of law, made between two parties. In international trade, there are various kinds of contracts in use, such as sales contract, joint venture contract, sales and purchase contract, contract for processing with supplied materials and assembling with supplied parts, sales confirmation, and so on.As a sales contract, it usually has the following parts:1. Title2. Preamble: contract date, place, parties concerned3. Name of commodity4. Quality clause: the method and standard by which to determine the quality, the time and place to determine the quality, tolerance clause, etc.5. Quantity clause: the unit of measurement, the place and time to deliver the agreed quantity, calculation of weight, more or less clause.6. Price clause: the terms of price, the currency used, commission, discount, etc.7. Packing clause: inner packing, outer packing, lining material, packing measurement, weight, marking, etc.8. Insurance clause: insurant, conditions, the insured amount and place for claim.9. Shipment and Delivery: place, time, mode of shipment and delivery, shipping advice, etc.10. Payment clause: time, terms, and currency for payment, stipulations for deferment and dishonor.11. Inspection clause: place of inspection, standard, the authorized inspection institution, etc.12. Claim clause: validity of claim, claim certification, etc.13. Arbitration clause: location of arbitration, applicable ar