When entering into a commercial contract in South America, be sure to detail the clauses for payment, indicating the time and manner to be paid. Should there be adjustments in the price between the buyer and the seller, be sure that it is duly recorded in writing, and signed by both parties. Some other aspects to exercise care in are:
Force majeure:
Please note that all contracts are subject to force majeure "superior force", which is a legal term for any "act of God" as flooding, earthquakes and other natural disasters that impede one of both parties from fulfilling their contractual obligations. It can include acts as wars, strikes, riots and crime. Be sure that the contracts clearly stipulate this.
Deferred payments:
Do cover for possible deferred payments for goods sold by stipulating in the contract the applicable interest rate when this happens. You may have to deal with defaults that come up by the suppliers that fail to perform according to the terms and conditions of the contracts.
Currency used:
When buying from or selling to South America, it is of the utmost importance to determine the currency used, as you may be dealing with a country that suffers from high inflation and currency devaluations. A look at history shows you that there were a large number of currency devaluations or changes in currency over a ten year period, so do exercise care.
评论