International Trade Process: Sales, Shipping, and Payments
International Trade: A Step-by-Step Process
Sales Agreement
The seller and the buyer agree on the terms of sale. This includes:
- Price
- Quantity
- Quality
- Delivery terms
Essential Documentation
Both the buyer and seller require important documentation. These documents facilitate a clear understanding of the transaction and ensure legal compliance. Examples include:
- Invoice: Detailing the goods sold and the price.
- Bill of Lading: Showing that the goods have been shipped.
- Certificate of Origin: Indicating where
Bill of Exchange: History, Concept, and Legal Framework
History of the Bill of Exchange
The bill of exchange is emphasized for three historical periods:
- Italian Period (14th Century): Arising from the need of merchants carrying values. This period is characterized by the letter of transfer, transport, or transportation.
- French Period (17th Century): Acceptance and endorsement were consolidated under French law.
- German Period (19th Century): Changes in German law added features to the bill of exchange that we have today.
Concept
A bill of exchange is a title
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Bill of Exchange – Definition and Key Players
A bill of exchange is a document through which a person agrees to pay another person a certain amount of money on a specified date and at a specified venue. These letters and official documents are obtained from tobacconists.
In a bill of exchange, the following are involved:
- The drawer – The person issuing the letter; the seller who is owed payment.
- The drawee – The person liable for payment; the buyer.
- The borrower – The person who has the letter in his
SA & SRL Dissolution, Shares, and Bill of Exchange
Causes of Dissolution of an SA (Public Limited Company)
A Public Limited Company (SA) in Spain can be dissolved for the following reasons:
- If the General Board agrees to it.
- Compliance with the terms set by statute.
- Having met the company’s objectives.
- Losses that reduce the company’s net worth to below 50% of the share capital.
- Reduction of capital below the legal minimum (€60,102).
- Inability to carry out the company’s objectives.
- Bankruptcy (before bankruptcy proceedings). If an agreement is signed,
Bill of Exchange: Characteristics and Requirements
CHAPTER XX – Bill of Exchange
General
Notion and general characteristics.
A bill of exchange can be defined as a negotiable instrument that incorporates an unconditional order, given by the issuer to another person, to pay a certain sum to another party. It is regulated by Law 19/1985 of July 16, concerning exchange and checks.
There are three subjects:
- The drawer, who issues the document giving the payment order, ensuring compliance.
- The drawee: the person to whom the payment order is directed. They
Understanding Checks: Types, Endorsements, and Payments
People Involved in the Payment of a Check
People involved in the payment of a check:
Classes of Checks
- Bearer: Can be paid to the person who presents it for collection.
- Nominee: Intended for a specific person or entity.
- Nominative in-command: Names a person or entity so that it can be transmitted by endorsement.
The Endorsement
The endorsement is a provision that serves to pass the check. The person who transmits the check is the endorser, and who receives it is the endorsee.
A check payable to the order
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