MINIMISING THE RISKS OF CONTRACTUAL POLICY WHEN CONCLUDING FEA CONTRACTS

Abstract

The procedure and forms of settlements with foreign counterparties are formalised by FEA contracts. As a result of their fulfilment the enterprise has current liabilities - accounts payable. In the conditions of uncertainty faced by domestic enterprises, the contract is the main legal act from which the obligations of the parties arise. The current legislation does not contain clear requirements regarding the conditions to be reflected in foreign economic agreements (contracts). There is also no approved form of such contracts. Therefore, the article summarises the main sections of a foreign economic contract, as well as the features that should be taken into account at the stage of contract conclusion. In particular, the indication of the norms of legislation of the country, which will regulate the implementation of the contract; the language of the contract; the terms of delivery of goods; liability clauses; force majeure; arbitration clauses, quality guarantees, contract insurance, terms of involvement of contract sub-executors, agents, transport companies; conditions under which the transfer of technical documentation on the goods will be carried out; preservation of trademarks; the procedure for payment of customs duties, taxes; the number of signed copies of the FEA contract; and the number of signed copies of the contract. The article also systematises ways to minimise the risks of contractual policy, namely: a balanced approach to the choice of a foreign counterparty, determination of the terms of mutual obligations under the FEA contract, checking counterparties for their conscientiousness before existing partners, assessing the risks of non-fulfilment of the contract, checking up-to-date information in open registers of companies of the future non-resident partner (for example, in search queries by company name, jurisdiction, region, etc.); checking representatives of future partners in the person of the director, accountant, etc.). The given recommendations on conducting contractual policy of business entities in the sphere of foreign economic activity are not complete, but may be useful for ensuring the fulfilment of the terms of contracts with foreign counterparties and preventing the risks of disputes.