International Business INB355 Study Guide - Final Guide: Dry Port, Bankers' Acceptance, Credit Risk
28 Jul 2016
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Document Summary
Analyze an export sale contract from the terms of payment/terms of sales point of view and recognize at which point responsibility for the performance of a particular function (cost/risk/title) passes from the seller to the buyer. Traditional terms of payment: open account; documentary collection; letters of credit and cash in advance (see pages number 2-9 to 2-21) transfer of title . Terms of sale (terms of delivery; terms of shipment: incoterms (see pages number 3-18 to 3: transfer of cost and risk . Sample: cfr port of buenos aires / collection @ sight. Risk: cargo on board vessel named port of loading. Title: as soon as buyer pays invoice value at presenting bank. Time of payment to seller: on receipt of order. Time of payment to seller: prior to shipment. Risk to buyer: reliance on seller to ship as ordered. Time of payment to seller: after the documents that comply with the credit are presented to the bank.
