英语论文网

There are many ways of receiving payment. Many sellers require payment in advance and for them, this is very secure. It is not recommended for the buyer. Alternatively, the buyer may pay on receipt of good which conform to the contract. This is not recommended for the seller. However, both of these methods are used every day and work to varying degrees depending on the relationship of the parties. Some sellers operate through agents and use the agent as a collecting authority in-country. This can be effective.

This Topic will look at secure payment methods and also some devices used to guarantee performance of contracts.
Topic Content

What problems exist for any seller looking for payment? What is the purchaser of goods seeking before he parts with his cash?

• Buyer wants to see the goods before he pays
• Seller does not want to release goods until he has payment secured

These are the crucial commercial issues and of course they are of prime importance to the parties in any transaction. In international transactions there are further elements which create extra dimensions of uncertainty

– Distance
– Distrust due to lack of knowledge
– Lack of familiarity
– Different Trade Practices

BONDS

Bonds are documents which are commonly used in contracts to guarantee performance. They generally allow one party to draw up to a specified level of money on the account of the other if the other fails to fulfill its contractual obligations.

When one party is paying for performance, it is common for it to seek a bond from the other side to guarantee performance. This is often used where the party performing the contract may not have the resources to address any default should any problems arise; or it may be that it is simply more expedient for a bond to be delivered on the basis perhaps that the parties are in different countries and it is easier to call up a bond than to bring the contractor back to sort out any post contract problems.

Another form of security for performance would be an entitlement to withhold payment for 12 months (or some other period) after performance has been completed and during the warranty or defects liability period.

Common types of bond are:

• Bid Bonds

Bid bonds are often requested from companies tendering for a contract as a condition of their tender being received. These are usually for around 10% of the price. The bond should be returned to the unsuccessful bidders. This may be used to allow the party issuing the tender to call on the bond to make good any expense it has been put to during the tendering process.

• Performance Bonds

Performance bonds are common. A style is annexed. Care has to be taken to ensure that the party alleged to be in default is given a chance to correct the default; that the amount is capped and that the amount which can be called on is related to the value of the default. The party giving the bond may also ask to be given notice of any attempt to call on the bond. This will normally be resisted by the party in whose favour the bond is made out, otherwis本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。