Checklist · International Business Law

Checking the payment clause of an international contract

The international payment clause allocates risks between seller and buyer. It indeed determines who bears non-payment, exchange rate risk and the cost of the payment term. Two identical contracts can thus allocate these risks in opposite ways. The checklist therefore examines the clause before signature, from both points of view.

Checking the payment clause of an international contract – partial preview of the first page

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PDF, 4 pages
Languages: French, English, Spanish, Arabic

What the international payment clause checklist verifies

  • Identification of the transaction.
  • Payment method and schedule.
  • Guarantees and documentary instruments.
  • Currency, exchange and bank charges.
  • Late payment, payment default and retention of title.
  • Consistency with the Incoterm and delivery.
  • Finally, a record of uncovered risks, rated from 1 to 5, and the follow-up actions.

When to check an international payment clause

The checklist serves first before an export sales contract is signed. It also serves when a new payment instrument is negotiated. Furthermore, it informs the analysis of a non-payment.

Finance and sales departments are in particular its intended readers. The document also concerns export managers and credit managers.

Instructions for use

The checklist is first gone through from the seller’s point of view, then from the buyer’s. Each risk is then linked to an instrument or a clause. Furthermore, consistency with the Incoterm is checked systematically. Finally, the record of uncovered risks, rated from 1 to 5, guides negotiation or hedging.

Key facts

Format PDF, 4 pages
Languages French, English, Spanish, Arabic
Version October 2026
Access download after registration
Scope international sale and service contracts; rules of the International Chamber of Commerce

Limitations

The checklist does not replace the bank’s view on documentary instruments. Likewise, exchange control regulations are to be checked for each transaction. Finally, the document is to be read together with the notes on use and references it contains.

Further reading: investment project structuring; International Chamber of Commerce.

  • Prepared by ASKonsult
  • Languages: French, English, Spanish, Arabic
  • Version: octobre 2026

In the same field

Going further International contract consultation: points of attention and points to negotiate before signing

General information document; it constitutes neither legal advice nor an opinion on a particular situation. References to legal texts should be checked against the version in force on the date of use.

Consulting firm not registered with the Bar; no representation before the courts and no act reserved to the regulated legal professions.