What are the forms of FTC's?
All FTC's to be valid must be concluded in the form required by the applicable law. In some jurisdictions, a FTC is valid irrespective of whether it is oral or in writing. The United Nations Convention [1980] on Contracts for the International Sale of Goods [CISG] also adopts a liberal approach to the form of a contract by stipulating that a contract of sale need not be concluded in or evidenced by writing and is not subject to any other requirements as to form.
Chinese law diverges from the practice relating to oral contracts followed by most other countries by requiring that FTC's must be made in writing.The Foreign Economic Contract Law of China provides for three written forms:
[a]. A contract that is formed when clauses of the contract are agreed in a single written contractual document and signed by the parties [called a sales contract or export contract or import contract]
[b]. Where an agreement is reached by the means of letters, telegrams, emails and faxes and a confirmation of sale note is signed, provided one of the parties requires a signature, and
[c]. Contracts which under the provisions of Chinese laws and administrative regulations must be in written form and approved by the competent authorities and shall not be effective until such approval is granted.
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