Eskom Procurement Book 2015

GLOSSARY

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. 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. 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. 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. 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. Supplier’s written certification that goods being supplied are in conformity with those specified in the contract. A document attesting that a product or a service is in conformity with specific standards or technical specifications. A printed document issued by dock companies in regard to goods found to be in a damaged condition on being unloaded from a ship. 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. 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.

Cash discount:

Cash on delivery:

Cash with order:

Caveat emptor:

Certificate of compliance: Certificate of conformity: Certificate of damage: Certificate of inspection:

Certificate of origin:

206 CHAPTER 8