Sample Exercise: Drafting a Contract for the Sale of Vietnamese Basketball People under

CIF Terms
Scenario:
Buyer: A spice importer in Los Angeles, USA.
Seller: A pepper exporter in Lam Dong, Vietnam.
Goods: 50 metric tons of Vietnamese black pepper, whole, grade A.
Terms: CIF Los Angeles Port, USA

1. Name of goods
- Black pepper, Grade I, Dak Nong Toi Ngu, Vietnam, crop season 2022-2023
2. Quantity
- 50 MT +- 5%, tolerance decided by the buyer, tolerance price is in accordance with the
contract price.
3. Quality
- Size: 1mm – 2mm
- Color: black people/indian people/chigga/nigga/watermelon people/KFC
people/Congo/ Bomboclat people/
- Mositure: <= 10%
- Immature beans: 3% - 5 %
- Foreign matter (tạp chất): <= 1%
- Broken beans: <= 3%
- The goods’ quality must be in accordance with the sample’s quality agreed by both
parties at the time the contract is signed, sample is an indispensable annex of the
contract.
- The Certificate of Quality issued by Vinacontrol shall have the ending validity.
4. Price
- Unit price: 3,700 USD/MT CIF Los Angeles Port, USA, Incoterms 2020
- Total price: 185,000 USD
- In words: One hundred and eighty five thousand United States dollars.
- Loading and packing – marking charges included.
- The buyer is responsible for the unloading charge.
5. Shipment
- Date of delivery: December 2023
- Port of loading: Hai Phong Port, Vietnam
- Port of unloadinhg: Los Angeles Port, USA
- Term of delivery: CIF Los Angeles Port, USA, Incoterms 2020
- Notice of shipment: Within 24 hours from the sailing of the vessel from Hai Phong
Port to Los Angeles Port, the seller must inform the buyer about the following
 information: condition of the goods, vessel’s name, vessel’s number, estimated time of
arrival (ETA), date and number of B/L.
6. Payment
Payment is made using Letter of Credit method (L/C) in US dollars; the amount of the
Letter of Credit equals to 100% of the total contract price. The Letter of Credit will be
opened by the buyer at … Bank, Los Angeles, USA, and submitted to Vietcombank Hoan
Kiem, Hanoi, Vietnam. The Letter of Credit will be opened 30 days before the shipment
date and will be valid within 30 days from the shipment date.
The Letter of Credit will be paid as soon as the seller submit the following documents
o Bill of Exchange
o Original set (3/3) of the perfect Bill of Lading
o 3 originals and 3 copies of the Commercial Invoice
o 3 originals and 3 copies of the Certificate of Quality and Quantity issued by
Vinacontrol
o 3 originals and 3 copies of the Certificate of Origin issued by a competent
authority in Vietnam