International Sales Contract for Hong Kong

International Sales Contract Template for Hong Kong

An International Sales Contract governed by Hong Kong law is a comprehensive legal agreement that establishes the terms and conditions for the cross-border sale of goods. It addresses crucial aspects including product specifications, pricing, delivery terms, risk allocation, and payment mechanisms, while ensuring compliance with Hong Kong's legal framework, particularly the Sale of Goods Ordinance and Contracts Ordinance. The document incorporates international trade considerations such as Incoterms, shipping requirements, customs documentation, and quality control procedures, making it suitable for businesses engaged in import/export activities through Hong Kong.

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What is a International Sales Contract?

The International Sales Contract is essential for businesses engaged in cross-border trade through Hong Kong, providing a legally robust framework for international commercial transactions. This document is particularly crucial when companies need to establish clear terms for the sale of goods between jurisdictions, incorporating Hong Kong's legal requirements while addressing international trade practices. It should be used whenever a company is entering into a significant cross-border sale arrangement, especially when dealing with high-value goods or recurring trading relationships. The contract covers essential elements including product specifications, quality standards, delivery terms, risk transfer, payment mechanisms, and dispute resolution procedures, all within Hong Kong's legal framework. It's designed to protect both parties' interests while ensuring compliance with relevant trade regulations and customs requirements.

What sections should be included in a International Sales Contract?

1. Parties: Identification of seller and buyer, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, nature of the business relationship, and general purpose of the contract

3. Definitions: Key terms used throughout the agreement, including product specifications, technical terms, and relevant trade terms

4. Sale and Purchase: Core agreement for the sale and purchase of goods, including product description and quantity

5. Price and Payment: Purchase price, payment terms, currency, payment method, and timing

6. Delivery: Delivery terms, Incoterms, delivery schedule, packaging requirements, and shipping documentation

7. Title and Risk: Transfer of ownership and risk in the goods

8. Quality and Inspection: Quality standards, inspection procedures, and acceptance criteria

9. Warranties: Warranties regarding the goods, including quality, fitness for purpose, and compliance with specifications

10. Limitation of Liability: Scope and extent of liability of each party

11. Force Majeure: Events excusing performance and procedures for handling such events

12. Termination: Grounds for termination and consequences of termination

13. Governing Law and Jurisdiction: Hong Kong law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including notices, entire agreement, and amendments

What sections are optional to include in a International Sales Contract?

1. Intellectual Property: Required when the goods involve patents, trademarks, or other IP rights

2. Confidentiality: Needed when sensitive information will be exchanged during the business relationship

3. Insurance: Include when specific insurance requirements are needed beyond standard shipping insurance

4. Export/Import Controls: Required when goods are subject to specific trade restrictions or licensing requirements

5. After-Sales Service: Include when maintenance, support, or spare parts arrangements are part of the deal

6. Product Training: Needed when seller must provide training on use of goods

7. Bank Guarantees: Include when payment security or performance guarantees are required

8. Dispute Resolution: Alternative dispute resolution procedures if parties prefer arbitration over litigation

What schedules should be included in a International Sales Contract?

1. Product Specifications: Detailed technical specifications of the goods

2. Price List: Detailed pricing information, including any volume discounts or price adjustment mechanisms

3. Delivery Schedule: Detailed timeline for deliveries, especially for multiple shipments

4. Quality Standards: Specific quality requirements, testing procedures, and acceptance criteria

5. Form of Purchase Order: Standard form for ordering goods under the agreement

6. Required Documentation: List of required shipping, customs, and quality documentation

7. Warranty Terms: Detailed warranty terms and claims procedures

8. After-Sales Support: Details of any agreed maintenance or support services

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Genie AI

Document Type

Sales Contract

Sector

Sales

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Electronics

Textiles

Food and Beverage

Automotive

Consumer Goods

Machinery and Equipment

Chemicals

Pharmaceuticals

Raw Materials

Agricultural Products

Industrial Equipment

Relevant Teams

Legal

Procurement

Sales

International Trade

Supply Chain

Finance

Operations

Compliance

Commercial

Business Development

Relevant Roles

Chief Executive Officer

Commercial Director

Procurement Manager

Sales Director

Export Manager

Import Manager

Legal Counsel

Contract Manager

Supply Chain Manager

International Trade Specialist

Compliance Officer

Finance Director

Operations Manager

Business Development Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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