Notes on Drafting a Dropshipping Contract

Foreign trade friends often meet foreigners who ask them if they need dropshipping service. Many people will ask what dropshipping means. In fact, we can understand dropshipping as "consignment" or "transshipment delivery". As a retailer, you don't have to overstock a lot of goods. When you have an order, you can transfer the drop shipped order to the supplier or manufacturer. And they will deliver the goods directly to your designated customers. Your profit is the difference between the price you sell the goods and the supplier gives you.

Dropshipping contract, also known as dropshipping agreement, is an agreement between metaphysical dropshippers and customers that establish, change and terminate the relationship of civil rights and obligations. As a kind of civil juristic act, dropshipping agent contract is the product of the parties' consensus and an agreement with more than two expressions of intention. A legally established contract shall take effect from the date of its establishment and shall be legally binding. So what should be paid attention to when drafting the contract?

First, we should pay attention to whether the name of the dropship selling contract is consistent with the content of the contract. Some enterprises use the unified contract text, which is originally a good thing. But due to the lack of understanding of the contract, there will be unreasonable use.

Second, we need to pay attention to the unit price of each item. Some enterprises mark many kinds of commodities in their contracts. However, they only specify the total price of all kinds of dropship direct products in the contract, and do not determine the unit price of each commodity. Once the contract is partially performed, it is difficult to determine the price of some goods that have not been performed.

Third, the calculation method of liquidated damages and compensation should be specified in the contract. According to the printful dropshipping contract law, if one party breaks the contract, the other party can claim liquidated damages and compensation from it. However, if the amount of liquidated damages is not specified in the contract, the court will consider that both parties have given up the right of liquidated damages at that time and will not support it.

Fourth, the contract terms must be the agreement between dropshippers and customers. The contract law clearly stipulates that the parties shall abide by the principle of fairness to determine the rights and obligations of each party, and one party must undertake the obligations when enjoying the rights. The equivalence of shopify dropshipping contract terms is an important part of the principle of fairness.

Last, we should pay attention to the strict use of words. Don't use ambiguous words or polysemy in the dropshipping business contract.

Strictly abide by the above principles, we believe that you can become the best dropshipping implementers.