Payment Sale

"Payment Sale" is not a standard term in international trade. It usually refers to a situation where the buyer fails to pay for the goods as stipulated in the contract, and the seller, in order to mitigate losses, resells the goods to a third party or disposes of them at a reduced price. This term is commonly seen under payment methods such as letters of credit, documentary collections, or open account. When the buyer defaults (e.g., refuses to pay, goes bankrupt), the seller exercises the right to dispose of the goods. Usage scenarios include: buyer rejects goods, buyer delays payment, buyer becomes insolvent. Precautions: The seller must ensure ownership or lien over the goods, notify the buyer before resale and keep evidence to avoid legal disputes; also pay attention to whether the resale price is reasonable to prevent accusations of malicious low-price disposal. The difference from "Resale" is that "Payment Sale" emphasizes forced disposal due to buyer's non-payment and has the nature of a default remedy, while "Resale" may be a normal commercial act. Unlike "Auction," disposal does not necessarily go through public bidding. Foreign trade practitioners should clearly stipulate default disposal clauses in contracts and insure credit insurance to reduce risks.