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Simple English definitions for legal terms
documentary instruction
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A quick definition of documentary instruction:
Documentary instruction is a written agreement between an importer and exporter that covers the shipment and disposal of goods. It includes various documents related to the transaction. A documentary letter of credit is a type of agreement that guarantees payment to the exporter. The documentary-originals rule is a legal principle that requires the presentation of original documents as evidence in court. A documentary sale is a type of sale that involves the transfer of documents related to the goods. A documentary stamp is a stamp that must be affixed to a deed or other legal document before it can be recorded.
A more thorough explanation:
Definition: A written agreement between an importer and exporter that outlines the necessary documents for the shipment and disposal of goods.
Example: Let's say a company in the United States wants to import goods from a company in China. The two companies would create a documentary instruction that specifies which documents are required for the shipment, such as a bill of lading, commercial invoice, and packing list. This agreement ensures that both parties are aware of the necessary paperwork and can avoid any delays or misunderstandings during the import process.
Explanation: A documentary instruction is a crucial part of international trade because it helps to ensure that all necessary documents are in order. Without this agreement, there could be confusion or delays in the shipment process, which could result in financial losses for both parties. By outlining the required documents in advance, the importer and exporter can work together to ensure a smooth and efficient transaction.