Conditions of sale
Conditions of sale are defined as the terms, and arrangements, on which both the buyer and seller of a certain product are required to agree upon. Before any purchase, they must be clearly stated and known to both parties. Most often used in auctions, their core purpose is to govern the relationship of the ones participating in the auction as well as the organizer.
It consists of information involving e. g. :
- the product itself, and the circumstances of the purchase - this section focuses on the bought items characteristics, and the order of the product,
- the price of the product - this section contains information regulating any possible changes to dut the purchased items price,
- the payment for the product - this part indicates, in which method should the buyer pay the seller (ceck, cash, credit card, etc.),
- the delivery of the product (in cases, where the item is purchased on-line, or requires a delivery) - this part focuses on the time of the products delivery and any delays which may occur,
- the policies on any future refunds, returns or exchanges - this sections informs buyers about the circumstances in which, they may request a refund, return a product, or exchange it,
- the warranty of the product - in this part the seller commits to their products standard and assures to provide assisting or refunding services in the eventof a malfunction,
- the use of the product - here the seller speaks of the purpose of the product and what should and shouldn't it be used to.
Aside from the given examples, any company, is entitled to include any other terms and conditions of sale, wich they see fit.
Incoterms & ICC
Incoterms, are a set of 13 major sales regulations instated by the ICC. The International Chamber of Commerce, which was introduced in 1923, to contemplate international disputes in the field of commerce [1]. Standardized by the ICC, Incoterms core purpose is to indicate international commertial practice [2].
The International Chamber of Commerce is an international organization dedicated to the promotion of international trade, maintain a global approach to regulations in the field of commerce, provide dispute resolution services and promote responsible business conduct. Additionly, the ICC specialisees in providing world-class legal and business trainings and publish industry-leading practical tools for banking and arbitration and international business [3].
Conditions of sale in commercial real estate
Commercial real estate is defined as any non-residential estate which core purpose is generating profit. It includes malls, shops, industrial parks and office buildings.
Considered a group of hedonic control variables, the terms and conditions of sale allow experts of the real estate field to establish comparables and to uphold price adjustments the same way as the diverse attributes of purchasers and sellers. They characterize external forces and factors which create transaction conditions, motivations, funding details, and information compentence for both parties [4].
Footnotes
| Conditions of sale — recommended articles |
| Placement fee — Mercantile law — Executed agreement — Trade counter — Value added tax — Arms length price — Sole distributor — Certificate of approval — Certificate of origin |
References
- Derains Y., (1985)International Chamber of Commerce ArbitrationPace Law Review, p. 591
- International Chamber of Commerce, (2019) International Chamber of Commerce
- Ramberg J., (2011) Incoterms 2010 European Journal of Law Reform, p. 380
- Robinson S. J., Sanderford A.J, (2019) Conditions of Sale Control Variables in Hedonic Analysis of Commercial Real EstateReal Estate Finance, p. 169
Author: Marta Marzec
