An important condition of the supply contract is that the buyer must use the purchased goods for business purposes. If the goods are purchased for personal use, such a relationship cannot be formalized through a supply contract. As a supplier can be any legal and natural person who carries out business activities.
The supply contract is made in writing. The moment of conclusion of such agreement shall be determined by the moment when all essential terms and conditions are stated in the agreement and signed by both parties. If the parties to the contract are individual entrepreneurs and the amount of the contract does not exceed 10 times the size of the minimum wage, the supply contract can be concluded orally. Continue reading
Bank guarantee – this is one of the types of insurance risks in the enforcement of transactions. The essence of such insurance is that all risks in a transaction between economic entities are acquired by a Bank, insurance company or other legal entity (guarantor) at the request of the transaction participant (principal). The guarantee is issued in writing. In case of default by the principal of its obligations to the creditor, the grant undertakes to cover the losses of the latter either in full or to the extent specified in the guarantee.
Currently, in the Russian business, this type of insurance transactions is not as common as in the economies of Europe and the United States, however, the trend for its spread in the last few years is positive. Continue reading