Clause

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📖 Detailed Explanation

In foreign trade, a Clause refers to a specific condition or stipulation in legal documents such as contracts, letters of credit, and bills of lading, serving as the basic unit of a complete agreement. It is widely used, including payment clauses, delivery clauses, force majeure clauses in sales contracts, and special clauses in letters of credit. Note: Clause wording must be precise and unambiguous, and different clauses should be logically consistent to avoid conflicts; they must also comply with international trade practices (e.g., UCP600, Incoterms) and applicable laws. Difference from other terms: Clause emphasizes specific details in a contract, while Terms often refer to overall transaction conditions (e.g., payment terms, price terms), and Provision leans more toward legal provisions. Foreign trade practitioners should review clause by clause, especially paying attention to risk points such as Soft Clauses.

📝 Examples

1. According to the force majeure clause in Article 5 of the contract, the seller shall not be liable for breach of contract for delivery delays caused by natural disasters. (Note: Citing a specific clause to claim exemption) 2. The letter of credit stipulates that 'the beneficiary must submit a copy of the shipping notice within 48 hours after shipment, otherwise 1% of the payment will be deducted.' This clause is extremely unfavorable to us, and we suggest requesting an amendment. (Note: Identifying and negotiating amendments to unfavorable clauses in the letter of credit)

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