CONTRACT INFORMATION
what is a contract?
a contract is legally enforceable, binding agreement between two or more parties stating that something is done or will be done.
WHAT IS A TRANSACTION?
THE COMPLETE PROCESS OF PURCHASING GOODS & SERVICES INITIAL ENQUIRY TO EVENTUAL PAYMENT
what are foreign documents?
documents used for foreign trade
what is the difference between credit and debit note?
credit is the record money you owe and debit is the money you own
types of contract?
speciality contract, contract of record, simple contract
name three mistakes that occur in contract procedure
common mistake, mutual mistake, misrepresentation
name the 5 payment documents
bill of exchange, documentary bill, documentary credit, letter of credit
what are 7 things that must be present for a contract to take place
consideration, capacity, legality, possibility, good faith, case law
what are the three requirements a speciality contract must have
signed
sealed
delivered
explain what is the difference between common mistake and misrepresentation
when both parties agree that they had a mis understading and and misrepresentation is statement that is untrue.
what are three ways you can make a payment?
cash, bankers draft and cheque
what are the 3 copies of the bill of landing are raised
exporter, ships captain , importer
what is stock and why is it important to businesses?
stock is a form of security that indicates the holder has a portion of ownership in a corporation, it is important to reduce holding stock, and to ensure you can meet customer demand.
what are the parties of a contract and explain them
offeror-the person who makes the offer
offeree- the person to whom the offer is made
acceptor- the offeree accepting the offeror
four ways a contract can be discharge and give brief explaination of each
performance- if the job is completed
agreement-parties involes decide to cancel
breach of contract-if one party does not fulfilled there part of the bargain.
Name 2 ways you you can make payment arrangements
pay in advance, cash on delivery, receipt of invoice and against statement of account
what is the documentary bill
a bill of exchange with all related documents of title attached including invoice and insurance policy
how can stock levels affect the cash flow in a business?
it will give a negative amount
explain the contract process
the offer is a proposal made by one person to another, acceptance when the offer made is being accepted and consideration is when the price or benefit the parties must receive
name 5 ways a contract can be terminated?
if one of the parties dies
if it is not accepted within a specific period of time
if one party becomes bankrupted
if the contract has a clause that it can be terminated in advance
if the original contract was illegal
when purchasing a good or service what are the documents present? Give a brief explanation of each.
letter of enquiry-when a consumer wishing to buy goods, the person will send a letter to the seller requesting information good, price etc
quotation-when received the letter of enquiry the seller will send back a letter stating information ask, and also additional information such as trade discount, cash discount etc.
purchasing- if the buyer find the quotation satisfactory the person will send an official order.
acknowledgement of order-after the seller is received the order he will send back a letter stating he has received the order, he is willing to supply and when he is expected to deliver.
advice note-this is sent ahead of the goods to the consumer stating to expect the arrival of the good.
delivery note-when the buyer checks to see all items are present and if delivered by people she will usually sign.
invoice- sent from the seller to buyer to advise her how much she owes the seller for the goods and delivery
name 3 other documents and explain
manifest- summery of all the bills of lading and cargo a ship is carrying
freight note- bill of charge for shipping goods sent to the exporter
certificate of origin- certifying the country of origin of goods