In import export business it may be case that the buyer and the seller do not know each other very well. In this case a letter of credit may help iron out payment issues, assuming the parties understand what letters of credits (LOC) are and how they work. This payment method is only applicable in …
When transacting internationally, there are certain risks two of which are payment reliability and whether or not you will get what you have asked for. Collection agreements, that is, documentary collection is one of the common methods that the parties can use. Collection arrangements are governed by international regulations sponsored by the International Chamber of …
For most people the terms like guarantee and warranty have no difference and that just means using them interchangeably but of course there is a difference which is what we are to look at in this post. WHAT IS A WARRANTY? When suppliers or sellers talk about warranties, they are talking about a promise to …
ELEMENTS OF A VALID OFFER AND MANAGING CONTRACTUAL RISKS Contracts are important in business deals for they not only make reference to documents used in business agreements, they summarize the duties obligations and expectations of the parties contracting as well. Usually for a contract to be valid one party makes an offer and the other …
Nature of Employability has changed One thing that comes out clearly when you pay attention to history, even if you never bothered with history in school, is that as human we are always looking for ways to be efficient in terms of how we get things done. We went from simple hunting, farming to robotics …
Business relations are often changing and given that these relations are mostly summed up in a contract, it is often the case that contracts are amended to reflect these changes. Care is however needed to avoid pitfalls What is contract variation? Contract variation is what happens when parties to a contract agree to do something …
A lot of rationalization conceals what typically goes down in most business relations. This, if you think about it, makes more sense especially if you consider how people at times tend to take the adversarial nature of business to the extreme edge, that is, brinkmanship. An executive in an organization will hire a research team …
The environments in which businesses exist are constantly changing. By environment I mean both internal and external. What can one do about it? The short answer is come up with a strategy that ensures that the business is distinct and has a competitive advantage. Strategy, in its simplest form, means the things that an organization …
Business dealings are often summed up in a contract, that way the parties have an idea of how to handle future issues should they arise. At least in theory that is what it looks like. In practice however, you need to understand the need for dispute resolution and am not just talking about litigation. Taking …
Here is a simple look at Dispute Resolution in business Read More »
What is force majeure? Different legal systems have developed various theories to deal with the need of contracting parties to excuse themselves from contractual obligations should events beyond the parties control inhibit the said parties from fulfilling the said obligations Force majeure is an example of such a clause in a contract Let’s say you …
