General Terms

General Terms are the core part of a foreign trade contract or agreement that stipulate universally applicable rules, typically covering basic content such as payment methods, delivery conditions, inspection standards, claims, force majeure, and arbitration. They differ from 'Specific Terms' that target a particular transaction, which apply only to a single deal; they also differ from 'Standard Terms,' which often refer to pre-drafted form clauses by one party. Usage scenarios include: signing long-term framework agreements, sales confirmations, and terms on the back of purchase orders. Precautions: 1) General Terms must be coordinated with Specific Terms; in case of conflict, Specific Terms usually prevail; 2) Their legal effect should be clarified to avoid conflicts with international rules such as the United Nations Convention on Contracts for the International Sale of Goods (CISG); 3) Different countries have different legal interpretations of General Terms, so it is advisable to specify the applicable law and dispute resolution method. Examples can help understand their position in real business.