international trade law-slides

8/4/2019 International Trade Law-Slides

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International Sale of Goods

International sale of goods isthe exchange of goods and

services between countries.

Goods are to be transportedfrom the sellers premises to

the buyers premises overseas.


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United Nations Convention on

Contracts for the International

Sale of Goods- Vienna Convention UN-sponsored convention that establishesuniform-rules fordrafting

international salescontracts, and sets the

legal rights and obligations of the seller

and the buyerunder such contracts. CISG

rulesapplyautomatically to the

sales contracts between the countries whohave ratified the convention.
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Problems associated in the

international trade transaction

1.An international sale will usuallyinvolve a sea transit

2. Customs need to be cleared

3. Import and export licenses need tobe obtained.

4. International sales raise conflict of

laws problems 5. Financial problems

6. Fluctuations in currency


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INCOTERMS or international

commerce terms

International Chamber of Commerce(ICC) has introduced quite a number ofspecial trade terms in use for international

trade. These terms have simplified the sale of

goods abroad. They are in universal use in

trade transactions Two extremely useful trade terms, namely:FOB and CIF


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FOB ( free on board)

In a FOB contract, the seller has to put the

goods on board a ship.

The price under an FOB contract includes

the cost of the goods and all expenses up

to the board the ship.

Once The delivery is completed then the

property and the risk pass to the buyer.


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Stock v Inglis (1884)12 QBD 573

The words free on board would mean that theshipper (seller) was to put the goods on board athis expense; and the goods so put on boardwould be at the risk of the buyer, whether theywere lost or not on the voyage

Wimble v Rosenberg (1913) 3 KB 743

The FOB is a contract for the sale of goods

where the seller agrees to deliver the goods overthe ships rail, and the buyer agrees to convey itoverseas.


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Types of FOB Contracts

Pyrene v Scindia Navigation-

(1954]

1. (The classic FOB OR classical FOB

2.extended FOB or FOB withadditional Services

3.Strict FOB.


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Duties of the F.O.B buyer

(a) To nominate the port of shipment, the

vessels name and procure the necessary

shipping space

(b) Nomination of a ship (c) To secure shipping space

d) To obtain the necessary import license

e) Pay any cost incidental to the shipment f) Pay the seller for the goods in accordance

with the contract


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Duties of the FOB seller

(1) To ship goods of contract

description at the named port of

shipment

2) To ship goods on time

(3) To obtain Export licenses

(4) To deliver the necessary documents


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CIF contracts

CIF stands for cost, insurance, freight

The letter CIF represents the threecontracts involved

1. The cost the sale contract

Insurance-the contract of insurance Freight- the contract of carriage.


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Shipping documents involved

in CIF contract

1.The commercial invoice,

2.A shipped bill of lading

3. policy of insurance during the seavoyage, and

4.Certificate of quality

5.Certificate of inspection 6.Certificate of origin


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Duties of the seller under a CIF

contract

1.To ship goods according to the

contract description

2.To enter into a contract of carriage in

order to deliver the goods.

3.To ensure that the goods are properly

insured under a contract of insurance

4.To procure and prepare proper

shipment documents.


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Duties of the buyer in a CIF

contract

1.Payment against documents

2. The buyer to name port of

destination

3. Buyer to take delivery

4. Import licenses


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REMEDIES IN INTERNATIONAL

SALES

Buyers remedies under CIF contract

(1) Rejection of the goods on arrival if

(2) Damages for non-delivery of thegoods.

3)Damages could also be claimed forlate delivery.

4. the buyer can reject the documents ifthe seller has not tendered the rightdocuments


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Sellers remedies in a CIF

contract

(1) Action for the price

(2) Damages for non-acceptance

(3) Damages for breach of warranty


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Carriage of goods

A contract whereby a person orcompany agrees to carry goods orpeople from one place to another for a

payment is called contract of carriage. carriage of goods can be

1.Carriage by land (including inland

waterways), 2.Carriage by sea

3.Carriage by air


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Classification of Carriers

(i) common carriers,

(ii) private carriers and

(iii) gratuitous carriers.


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Bill of Lading

Bill of lading is the official Legal

document signed by the captain,

agents, or owners of a vessel,

furnishing written evidence of thequality and quantity of cargo for the

conveyance and delivery of goods sent

by sea to a specific destination.


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Carriage of goods by sea

A contract for the carriage of goods by sea

is called as a contract of affreightment.

The word affreightment means the

hiring of a vessel or ship.

A contract of affreightment may take either

of the two forms

Charterparty

a bill of lading


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Conditions Contained in a

Contract of Carriage by Sea.

(i) Implied warranty of seaworthiness

(ii) Implied warranty of commencement

of voyage

(iii) Non-deviation of voyage

(iv) Shipper not to ship dangerous

goods

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