CHAPTER 22
Glossary FOR
2 0 0 0 , refer to Chapter 5: Trade Terms and Incoterms. For a comprehensive listing of international trade, economic, banking, legal and shipping terms, we recommend the Dictionary of International Trade also by World Trade Press.
INCOTERMS
a b r o g a t i o n The cancellation of the part of a contract that has not yet been performed. For example, if parties agree to several deliveries of goods but, after the first delivery, war is declared in the buyer’s country and no further goods can be delivered, the buyer must pay for the first delivery, but the contract is abrogated as to the remaining ones. a c c e p t a n c e An unconditional assent to an offer, or an assent conditioned on minor changes that do not affect material terms of the offer. See c o u n t e r o f f e r , offer. a c c o m m o d a t i o n An action by one party (the accommodation party) that is taken as a favor without consideration for another party (the accommodated party). a c c o u n t i n g A remedy for a breach of contract that requires the breaching party to disclose financial records. a c c o r d a n d s a t i s f a c t i o n A discharge of a contract or cause of action pursuant to which the parties agree (the accord) to alter their obligations and to perform new obligations (the satisfaction). For example, a seller who cannot obtain red fabric to meet the contract specifications may enter into an accord and satisfaction to provide the buyer with blue fabric for a slightly lower price. a c k n o w l e d g m e n t See a u t h e n t i cation. a c t o f g o d c l a u s e See f o r c e majeure clause.
a d h e s i o n c o n t r a c t A contract with standard, often printed, terms for sale of goods or services offered to buyers who usually have no power to negotiate any terms of the contract and who cannot acquire the products or services unless they agree to the contract terms. Also known as a “contract à prendre ou à laisser,” or a “take-it-or-leave-it” contract. a f f i l i a t e d c o m p a n y A business enterprise that is directly or indirectly owned or controlled by another entity. a f t e r s i g h t A term in a financial instrument making the instrument payable a specified number of days after presentation or demand. Example: a bill of exchange payable 30 days after sight will mature and become payable 30 days after the person for whom the bill is drawn (the drawee) presents it to a bank (the payee). a g e n c y The relationship between one individual or entity (the agent) who represents, acts for, and binds another individual or entity (the principal) in accordance with the principal’s request or instruction. In some countries, an agency is created only by written agreement or power of attorney. See p o w e r o f attorney. a g e n t An individual or entity who is authorized to act for and bind another individual or entity (the principal). See a g e n c y . a m e n d m e n t An addition, deletion, or change in a legal document.
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