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