Examples of using Countertrade commitment in English and their translations into Russian
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Official
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Colloquial
The term countertrade commitment is explained in chapter I, paragraph 25.
This contracting approach raises a limited number of issues since it does not involve a countertrade commitment.
Sometimes, however, the countertrade commitment is quantified by reference to a specific quantity of a given type of goods.
It should be noted that a mere agreement on negotiating procedures would not constitute a finn countertrade commitment.
The parties may agree that the exporter is to fulfil the countertrade commitment by purchasing goods from persons other than the importer.
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This approach has the advantage that the amount of the guarantee could be calculated as a percentage of the then outstanding countertrade commitment.
Even if negotiating procedures are combined with a finn countertrade commitment, such procedures alone do not ensure that negotiations will be successful.
Such a provision would assure the importer of not being bound under the export contract before issuance of a guarantee to support the countertrade commitment.
A countertrade commitment is an undertaking to conclude a future contract or a series of supply contracts in one or in both directions paragraph 1.
Such restrictions on origin andsource are particularly likely to be encountered when the party requiring a countertrade commitment is a governmental entity.
A countertrade commitment, a commitment to conclude a future contract, is an essential feature present in two types of countertrade transactions.
The party engaging the third party, on the other hand,may be interested in being able to terminate the engagement of the third party in the event that the countertrade commitment is terminated.
The degree to which the countertrade commitment is definite depends on the amount of detail contained in the countertrade agreement concerning the terms of the future contracts.
Without a provision to this effect, it cannot be assumed that payment under the guarantee would free the principal from the countertrade commitment or from liability for damages.
Sometimes a guarantee supports the countertrade commitment by way of securing payment under a liquidated damages or penalty clause covering the countertrade commitment. .
In many cases the exporter is primarily interested in the conclusion of the export contract, and the countertrade commitment results primarily from a desire to secure the export contract.
The purpose of such a provision would be to ensure that exempting impediments of a limited duration would not release the parties from the countertrade commitment.
It may be agreed that the beneficiary would be permitted to regard the countertrade commitment as breached and to claim payment under a liquidated damages or penalty clause.
This chapter focuses on guarantees(also referred to in practice as"bonds" or"indemnities")in a countertrade transaction supporting the countertrade commitment.
The purpose of such a provision is to resolve questions of liability for a failure to fulfil the countertrade commitment within a reasonable period of time following the expiry of the fulfilment period.
The parties may wish to include in such a stipulation the obligation to engage in negotiations aimed at modifying the countertrade agreement in order to preserve the countertrade commitment.
The countertrade agreement may provide that purchases are to be credited towards fulfilment of the countertrade commitment at different rates depending upon the type of goods purchased.
The parties may agree that, if the supply contract is not performed due to a reason imputable to one party, the amount of the unperformed contract could, at the option of the other party,be reinstated in the countertrade commitment.
Remedies to be considered are the release of a party from the countertrade commitment(paragrapbs 6-10) or monetary compensation, in particular in the form of liquidated damages or a penalty paragraphs 11 and 12.
Such documentary requirements should be in line with the provisions in the countertrade agreement concerning the stage when the countertrade commitment is deemed fulfilled see above, paragraphs 7-9.
In order for the countertrade commitment to be meaningful, it is particularly important that the countertrade agreement be as specific as possible as to the type, quality and quantity of the countertrade goods.
The transfer of the fulfilment credit to a third party would entitle that third party to sell goods to the party who originally granted the fulfilment credit and to reduce any countertrade commitment by the amount of the transferred fulfilment credit.
The primary purpose of the countertrade agreement in such cases is, in addition to stating the countertrade commitment, to outline the terms of the future contract and to establish procedures for concluding and carrying out supply contracts.
When the countertrade commitment is expressed in terms of the number of units to be purchased, the parties may wish to stipulate a minimum monetary amount so that, in the event of a drop in the unit price, additional units would have to be purchased.
A party may be entitled, in accordance with legal rules generally applicable to the breachof a contractual obligation, to be released from the countertrade commitment if the other party fails to take the action necessary for the fulfilment of the commitment. .