Contract Terms-Description of Commodities

To avoid possible conflicts,every effort should be made to describe the goods in the sales contract exactly as the buyer and the seller intemd them to be.

*Name of Commodity
This clause is relatively simple. Usually, the parties to the contract just specify the name of the product under the subject " Name of Commodity".This clause is a main component of the Description of Goods.As the basis of a transaction,it concerns the rights and the obligations of the buyer and the seller.If the goods delivered by the seller are not in accordance with the agreed name of commodity,the buyer reserves the right to lodge a claim,reject the goods or even cancel the contract.Therefore, as a main conditin of sale, the name of commodity should be clearly stipulated.When giving the name,try to be specific and adopt the widely accepted name agreed by both parties.

*Quantity of Commodity
In international trade,as different products have different characteriestics and different countries may adopt different system of weights and measures,units and ways of quantity calculation are varied.Units of calculation include weight,number,length,area,volume and capacity.The quantities of many commodities are calculated by weight,Gross weight,net weight,conditional weight (公量）,Theoretical Weight (理论中量），Legal Weight and Net Net weight are the commonly adopted ways of calculation.Sometimes,"Gross for Net"(以毛作净）is used for weight caculation.
Since quantity terms may be ambiguous,careful definition in the same contract is very important. The Metric system,British System,U.S. System and the International System of Units are generally used in international trade nowadays.The implementation and porpularization of the International System of Units symbolizes the increasing international and standardization of measurement system.But,confusion and misunderstanding on quantity measures is still not uncommon.An American Pound,for instance,is different from a European pound;similarly,a ton has a dfferent real weight depending on whether it is a short ton,a metric tone,or a long ton.

*Quality of Commodity
Terms indicating qulities are frequently even harder to define than weights and quantities.A term for defining one particular degree of quality in one country may have quite a different meaning in another.Some quality standards that are in frequent use in one country or specific industry may not be known or may be interpreted differently in other countries or industries.Furthermore,different commodities have different qualities ,and even the same commodity has different qualities.Therefore, great care needs to be taken to specify quality terms to avoid any disputes.
Sometimes,It's important to add a clause like "Qulity to be considered and being about equal to the sample" or a "Quality Tolerance" clause. It is also useful to clarity the buyer's rights if quality of goods shipped is lower than intened in the sales contract,for example,can he reject the shipment and send it back at the seller's expense, or does he get a reduction in price?Quality is an important component of the description of the goods, serving as the basis of a deal,The goods delivered by the seller should have the agreed quality.
In internaitonal transactions, there are different ways of showing quality:
1.Sale by Actual Quality
2.Sale by Sample (Seller's sample, Buyer's sample or counter sample)
3.Sale by Specification
4.Sale by Grade
5.Sale by Standard
6.Sale by Deiscriptions and Illustrations
7.Sale by Trademark or Brand
8.Sale by Name of Origin

*Packing of Commodity
Proper packing is extremely importand depending on the type of the products and its destination.Ocean voyages may be most damaging to the goods that are not properly packed.Goods subject to breakage have to be crated,those subject to moisture wrapped in plastic.Others may require some special treatment or coating before shipment,still others have to be refrigerated while in transit. Actually,packing not only serves as a form of protection,but also facilitates loading,unloading and stowage,and prevents pilferage.Fruthermore it can promote sales.
There are different types of packing:
1:Bale:a heap of material pressed togther and tied with rope and metal wire,suitable for paper,wool,cotton, and carpets,etc.
2.Bag:made of cotton,plastic,paper or jute,ideal for cement,fertilizer,flour,chemicals,etc
3.Barrel/Drum: made of wood,plastic or metal ,used for liquid or greasy cargoes
4.Box/Case:wooden in structure and of various size,and some are airtight,providing strong protection for cargoes as equipment and car accessories.
5.Glass container:used for dangerous liquid cargoes such as acids but needs careful handling.
6.Carton:now a very common form of packing particularly for consumer-type of products.It also aids marketing as words can be printed on them.
7.Crate/Skeleton case:wooden stucture between a bale and a case used for light weight goods of large cubic capacity as machinery

Factors influencing types of cargo packing for international consignments:
1.Packing should be designed according to the need of the cargo.Bulk cargoes require little packing.General merchandise require packing of various types,such as fruits in cartons,chemicals in bags and electrical equipment in wooden cases.Besides,high value goods normally require more expensive packing.
2.Factors in relation to transports such as the nature of transit,loading and unloading facilities,and transport unit should be considered.When contaniners are usted,packing can be less extensive.If cargoes are shipped by air,the packing should be stronger.In ocean transport, cargoes should be packed with even stronger means.The packing should fit the facilities that are to be used at terminals.The dimenstion and the weight limit may also influence the shape,the size and weight of the cargo packing.
3.Packing should be in compliance with customs or statutory requirements.For example, in some countries,straw is an unacceptable form of packing due to the risk of insects.Wood should be suitably treated to kill any pests inside.
4.Packing should meet insurance acceptance conditions.Cargo that have a bad record in terms of damage or pilferage may be subject to the prescribed packing specifications or the insurance company may refused to cover them.
5.Packing should also be economical while being suffcient.
6.Packing should make the handling as easy as possible.

Of equal importance is the marking of the packages themselves.This is vital in order to make possible speedy identification of the consignment and also to comply with any regulations in force with regard to dangerous or hazardous cargoes. Overseas territories also sometimes enforce the regulations pertaining to marking of export cases.Equally,the marks should include wording or symbols that will enable the personnel handling the cargo to exercise any special care that may be required.
Basically,the golden rule is to keep shipping marks as simple as possible as shown below:
U.F.P
397
NO.1/6 UP
COPENHAGEN

Note:
U.F.P - initials of the importing/exporting company
397- customer's order/contract number
1/6 UP -case No.1 of a consignment of 6cases
COPENHAGEN-port of destination
Such markings would enable the ship owners and dockers etc. to sort out the consignment and to link up the cases with the bill of loading,thus enabling the customer or the agent to effect prompt collection.
Of caurse,it is not always possible to keep the marking simple.Somtimes,it is necessary to indicate the weight or measure of the packages,the name of the vessel or the origin of the goods. Where fragile goods are being transported,it is sound practice to indicate this by marking the cases "fragile" or for bags of raw material to bear the notice "Use No Hooks",or where appropriate for other materials,"Keep Dry".On occasions,the warning signs for any dangerous,explosive or corrosive products should be given in the shipping marks.
In international trade,packing is still an important compoent of the description of the goods, and a main condition of a sales contract.In most cases, the parties to a contract should know beforehand what packing is needed. When drafting the stipulation of packing,the specifications should be clear.Phrases as "Sea-Worthy Packing" or Customary Packing" should not be used as their meanings are ambiguous.Sometimes,the part who is to bear the packing charges should be specified. The quantity or weight for each package is sometimes also stipulated,for example,"cartons,24 tins per carton".