r--" ...~"'-~""'~~--~- lEfUfNCE ANDTERMINOLOGY UfiIT' ....as.r.turntoroom_._.._.._.__ [FILECOru UNITED NATIONS GENERAL ASSEMBLYistr. GENERAL A/CN.9/332/Add.3 12April1990 ORIGINAL: ENGLISH UNITED NATIONS COMMISSION ONINTERNATIONAL TRADELAW Twenty-third session NewYork,25June- 6July1990 INTERNATIONAL COUNTERTRADE Draftlegalguideondrawing upcontracts in international countertrade transactions: samplechapters* ReportoftheSecretary-General Addendum IV.GENERAL REMARKS ONDRAFTING Contents Paragraphs A.General remarks· ··· ····1-9 B.Language. ..····· ····10-12 C.Parties totransaction···· · ··13-14 D.Notifications· · ···.· · · ·.. ...·15-18 E.Definitions.·····.····..····19-22 A.General remarks 1. Acountertrade transaction isusually theresultofextensive written andoralcommunications between theparties. Eachpartymayfinditdesirable toestablish achecklist ofthenecessary stepstobetakeninnegotiating and drawing upcontracts constituting thetransactlon (thecountertrade agreement andthesupplycontracts). Such achecklist couldreducetheposs,ibility of omissions orerrorsoccurring inthestepstakenpriortoentering intothe contract. Apartymayalsowishtoconsider seeking legalortechnical advice *Thetextconta,ined hereinisafirstdraftprepared bythe Secretariat for.consideration bytheCommission aspartofthePreparatory work on the.draft legalguideondrawing upcontracts ininternadonal countertrade transactions Cindshouldnot.beregarded asstating theviewsof theCommission. 5372T V·90-83778A/CN.9/332/Add.3 English Page2 indrawing upthecontracts. Whilecountertrade transactions canbeexpected tobecomeroutine forparties experienced incountertrade, evensimple countertrade transactions mayposedifficulties fornewcomers tocountertrade calling forlegalortechnical advice. Forcomplex transactions, even experienced parties mayrequire advice. 2. Theprocess ofestablishing acountertrade transaction couldbe facilitated iftheparties agreethat,beforeafirstdraftofthe countertrade agreement and any supplycontract isprepared, negotiations on themaintechnical andcommercial issuesaretotakeplace. Thereafter, one oftheparties couldbeaskedtosubmitafirstdraftreflecting theagreement reached duringthenegotiations. Afirstdraftmaythenbediscussed and elaborated, resulting inapreliminary setofcontract documents, which,after reviewandfinalization, willgoverntherelationship between theparties. 3. Thelegalrulesapplicable tothecountertrade agreement mayrequire thatacountertrade agreement beinwritten form.'Even when written formis • notrequired, itisadvisable fortheparties toexpress theiragreement in writing toavoidlaterdisputes astowhattermswereactually agreedupon. Iftheparties decidethatmodifications ofthecountertrade agreement areto beinwriting, itisadvisable thatthisbestatedinthecountertrade agreement. 4. Theparties maywishtoclarify therelationship between thecontract documents, ontheonehand,andtheoralexchanges, correspondence anddraft documents whichcameaboutduringthenegotiations, ontheother. Theparties maywishtoprovide thatthosecommunications anddraftdocuments arenotpart ofthecontract. They may further provide thatthosecommunications anddraft documents cannotbeusedtointerpret thecontract, or,alternatively, that theymaybeusedforthispurpose totheextentpermitted bytheapplicable law.Underthelawapplicable tothecontract, oralexchanges and correspondence mightinsomecasesberelevant totheinterpretation ofthe contract eveniftheyoccurafterthecontract isentered into. 5. Theparties shouldensurethatthecontract termsasexpressed in writing areunambiguous andwillnotgiverisetodisputes, andthatthe relationship between thevarious documents comprising thetransaction is clearly established. Suchprecision may beofparticular importance in countertrade transactions thatarecarried outoveralongperiodand may have tobeadministered bypersons whohavenotparticipated inthenegotiations at theoutsetofthetransaction (e.g.buy-back oroffsettransactions). Each
**Analysis**
The text appears to be discussing the legal framework and terminology for international countertrade transactions, specifically focusing on the drafting of contracts and the avoidance of disputes. The language used is technical and legal, indicating that the topic is complex and requires specialized knowledge. The text does not seem to be related to humanitarian aid, health, education, employment, or culture. It is more likely related to economic development, international trade, or industry.

**Category**
International trade, Industry