Currency

ToyCo is to pay Krafty Kids using Canadian Dollars (CAD). 

This helps both companies to eliminate currency issues and risks. Other than that, this arrangement is very convenient for ToyCo as the company will not need to convert its currency Vietnamese Dong when paying and is an advantage of Krafty Kids considering the CAD is one of the currencies with higher value (demand) in the foreign exchange market.

Payment Amount

ToyCo is to pay Krafty Kids on a fixed amount as agreed by both parties and as to what is written in the contract.

This helps both companies to eliminate economic risks in relation to changing economies and economic situations, including inflation, trends, GDP, and the value of currencies. This makes the agreement eliminate external factors and conditions that might affect the fulfillment of the duties and obligations written in the contract.

Delivery Courier

Krafty Kids is to transport the orders only through a delivery courier licensed and agreed by both parties in this contract.

This helps both companies to promote the security of the orders from possible theft, damages, and losses during freight. This makes that transaction to be fair for both companies, in terms of freight insurance, as the delivery courier to transport the orders is approved by both parties. 

Contract Instruments

This contract is considered a direct transaction between ToyCo and Krafty Kids in which all instruments in this contract are non-negotiable and non-transferable.

This prevents security and privacy risks for both parties involved in the transaction. No instruments in the contract (including payments, checks, bill of lading, etc.) shall be negotiated and transferred to protect the data and information of both parties involved in the contract. 

Environmental Protection

This contract prohibits unethical environmental practices in doing business for both parties involved in the contract.

This prevents unethical environmental practices to be employed by both companies, especially Krafty Kids, to ensure that both brands and images of the companies involved will not be dragged into environmental scandals and controversies. 

Security and Privacy Protection

This contract prohibits disclosure and publicizing the all-important data and information of both companies involved, as well as the contract and the transaction itself.

This prevents competitors of both companies from knowing to whom they are doing business. Moreover, it also prevents competitors from knowing the strategies and competitive advantages of both companies, as well as their future plans.

Taxation and Other Fees

All taxes, tariff fees, and delivery fees shall all be included in the total amount to be paid by ToyCo to Krafty Kids.

This is to ensure that there will be no hidden charges for both parties involved in the contract. Other than that, this prevents confusion between parties when it comes to payments of other fees, especially the taxes. 

Insurance and Warranties

Krafty Kids shall ensure that the order of ToyCo is all insured from possible theft, damages, and losses during freight.

This is to protect the interest of ToyCo in the contract as transportation and freight come with freight and delivery risks of which both companies have no control.

Dispute Resolution

Both parties are obliged to undergo negotiation, mediation, arbitrary, and tribunal during dispute resolution to ensure that all dispute resolution has been utilized prior to settling the dispute in the court.

This is to ensure that the disputes and settlements are all done privately before the dispute is raised in court which makes the dispute more public. This is aligned with the security and privacy protection term of the contract that prevents private data and information of both companies to be leaked to the public and known to the competitors. 

Termination

In times when both parties have decided to terminate the contract, all damages and injuries incurred by the termination will be equally shared by both parties as the decision for termination is mutual.

This is to reduce the damages and injuries that one party incurred during termination. Other than that, it reduces the contract termination risks as the damages and injuries will be equally shared by both parties to ensure that no party is aggrieved and preserve good faith in the contract.