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Payment Of Transaction

What are the rules regarding payment – whether in cash or in kind – in case of spot and deferred transactions?

The amount and timing of payment must be agreed upon before delivery, whether the transaction is on spot or deferred:

• Cash for Goods: If the sale is a spot transaction and involves the payment of cash (or a like monetary instrument) for the delivery of goods, the seller is entitled to receive payment before delivery, though he may choose to waive this right;

• Goods for Goods: If the sale is a spot transaction in which only goods are exchanged, the two parties must make the exchange at the same time;

• Deferred Payment: Payment is deferrable when the seller agrees, as long as the payment date is known beforehand.

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