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206

CHAPTER 8

Cash against

documents:

Incoterm ‘Cash against documents’ means that the documents which

will enable a consignee to get delivery of his goods (such as a bill of

lading) are handed over to him only when he has paid for the goods.

In international trade, when the contract stipulates that payment be

made before goods are released, the commercial practice is to send

the bill of lading and/or other documents to a bank (located in the

consignee’s country) with instructions to release the documents only

when payment has been made. See also: Incoterms.

Cash discount:

Reduction, usually expressed as a percentage of the price of a

product or of the amount of a bill, if payment is made in cash or

promptly or within a specified period of time. See also Discount,

Quantity discount, Concealed discount and Trade discount.

Cash on delivery:

The expression stipulates that payment is to be made upon delivery

of goods. In other words, the carrier will not release goods unless

there is evidence that payment has been effected or else the

payment is made to the carrier at the time of delivery, e.g., to the

post office when collecting the consignment. See also Payment.

Cash with order:

A purchase agreement which requires that payment be remitted

along with the order (100% advance payment). Very often the

advance payment is secured by a bond. See alsoAdvance payment

and Payment.

Caveat emptor:

A legal expression which means ‘Let the buyer beware’. For a

contract for the sale of goods it implies that the buyer must satisfy

himself about all aspects of them before he buys the goods, there

being no provision under common law for implied warranty as to

the suitability of the goods for any specific purpose.

Certificate of

compliance:

Supplier’s written certification that goods being supplied are in

conformity with those specified in the contract.

Certificate of

conformity:

A document attesting that a product or a service is in conformity

with specific standards or technical specifications.

Certificate of

damage:

A printed document issued by dock companies in regard to goods

found to be in a damaged condition on being unloaded from a ship.

Certificate of

inspection:

A testimony of the findings of an authorised inspection agency on

the quality of the goods based on the specification laid down in the

respective contract document. See also Inspection and Technical

specification.

Certificate of origin:

Adocument indicating the country of origin of goods being imported.

It is usually issued by exporting countries, official authorities or by

other agencies (e.g. chambers of commerce) designated by the

governments.

GLOSSARY