dear friends,
i need your opinion. does a proforma invoice carries equal value to a contract? one more question; if a credit has terms like "certificate should be endorsed by..." how would you interpret "should" here.
is proforma invoice a contract?
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shahriar
- Posts: 923
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- First Name: Shahriar
- Last Name: Masum
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Judith
- Posts: 118
- Joined: Thu Mar 12, 2009 8:59 am
Proforma invoice = Offer
A proforma invoice is usually an estimate sent by the seller to a buyer in response to a trade inquiry. It usually constitutes an offer and until accepted by the buyer does not result in a binding contract.
If a credit has terms like "certificate SHOULD be endorsed by...", I would interpret it as a mandatory requirement and equate it to a “must” (otherwise why else would they put it in the credit!)
Hope this helps.
If a credit has terms like "certificate SHOULD be endorsed by...", I would interpret it as a mandatory requirement and equate it to a “must” (otherwise why else would they put it in the credit!)
Hope this helps.
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ghubshawi
- Posts: 30
- Joined: Tue Jun 24, 2008 12:51 pm
P.I vs Contract
Dear Shahriar,
To me Proforma Invoice is not necessarily to carry the same amount of contract as some time contract contains some settlements need not be mentioned in Proforma Invoice.
As for second Question I think "Should" in the context has to be construed as "Must" as far as it is a requirement of LC according to Article #3 of UCP 600 " Complying Presentation".
I wish if some one gather some general principles, or in other words, consolidate ISBP to help understanding of LCs literature such as:
1- Presenation is discrepant untill it establishes its compliance.
2- Unless otherwise stipulated original documents must be presented.
3- LC requirements are a must ... and so on.
Other comments are appreciated.
Rgds,
Ghubshawi
To me Proforma Invoice is not necessarily to carry the same amount of contract as some time contract contains some settlements need not be mentioned in Proforma Invoice.
As for second Question I think "Should" in the context has to be construed as "Must" as far as it is a requirement of LC according to Article #3 of UCP 600 " Complying Presentation".
I wish if some one gather some general principles, or in other words, consolidate ISBP to help understanding of LCs literature such as:
1- Presenation is discrepant untill it establishes its compliance.
2- Unless otherwise stipulated original documents must be presented.
3- LC requirements are a must ... and so on.
Other comments are appreciated.
Rgds,
Ghubshawi
