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collects from other suppliers. After collection of goods, packaging department
will pack the goods carefully as per the negotiation and agreement between
buyer and seller if any.
vi. Preparation of invoice: When the goods are ready for dispatch, the seller
prepares a statement of the amount payable to him by the buyer. This statement
is known as invoice. The object of the invoice is to explain to the buyer the
various items of which the total amount, he has to pay, is made up. Most
commonly, at the end of invoice' E & O. E' is written which is the abbreviated
from of 'Errors and omission expected'.
vii. Dispatching of good: After the goods have been carefully packed and invoice
is prepared, the seller arranges for their dispatch to the buyer. Goods may be
dispatched using different means of transport. It is the agreement between
buyer and seller to choose the means of transportation for dispatch of goods. In
absence of any definite instruction or agreement, seller should exercise his own
judgement.
viii. Complains and returns: If the buyers find that the goods are not of the same
quantity or quality as they wanted or that they have been damaged in transit,
they make a complaint to the seller. If the complaint is reasonable and logical,
the seller either adjusts the amount of invoice or compensates the buyer with
extra amount of goods taking return the goods on which complaints have been
made.
ix. Payment: After the buyer has received the goods, he will make arrangement for
the payment to the seller. Cash, cheque, money order, bill of exchange, etc. can
be the modes of payment which depends upon the terms and conditions agreed
earlier.

Terms and conditions of home trade

The buyers and the sellers should follow certain rules and regulations to avoid
possible misunderstanding. In a contract of sale, several conditions and warranties
are included. These all are known as terms and conditions which govern the contract
for the sale of goods. They must be carefully observed by both parties so as to avoid
possible unpleasant situation that may occur in future. The terms and conditions cover
right of the seller and buyer, quality and quantity of goods, means of transportation,
credit facilities, discount rate, payment mode, etc. These are explained below :
i. Types and qualities of goods: It signifies the identity of goods to be purchased
and sold. Buyer and seller both parties should be clear about the quantity,
quality, colour, size, type, brand, trademark or any other specification of goods.
ii. Price of goods: It is obvious that price of the goods plays the key role in
agreement of the trade and negotiation. Under this term, price of goods and net
payable amount should be agreed before the delivery of goods. The supplier
should supply the goods at the price of proforma invoice.

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