Once reaching an agreement on the overseas sale of goods, trader will carry out their management plan, such as controlling the quality and quantity of goods and especially preparing for exports, which ensures the performance of the contract and the legality of the transaction . Therefore, trade terms in international sale contracts are different from these of domestic trade and intended to clarify the method of delivery, the estimates of the goods and any incidental charges . FOB (Free on board) and CIF (Cost, Insurance and Freight) are of the most common forms of these special trade terms . The fundamental difference is that FOB contract specifies the port of loading meanwhile CIF contract stipulates the port of arrival . Despite in universal …show more content…
Nevertheless, the fundamental characteristic of FOB contract can be defined that the seller, under FOB contract, bears all expenses until he places the goods on board of a vessel berthed at a decided port of shipment and nominated by the buyer meanwhile the buyer has to incur all following charges such as freight and marine insurance, imports duties, consular fees due on arrival of the consignment in the port of destination even though all of these documents are procured by the seller . The buyer also carriers risk once the goods place on board …show more content…
It arises from the different FOB terms used for different licences in the export transaction or supply transaction . Three common types of FOB contracts are described by Devlin J. in Pyrene Co Ltd v Scindia Navigation Co Ltd . In particular, the first type of FOB contract called ‘strict FOB’ or ‘classic’ FOB contract is characterized as the aforementioned fundamental characteristic, in addition, the goods are placed on board for the buyer’s account and the bill of lading is procured by the seller in the buyer’s name. In the second type, the seller makes the essential arrangements without the buyer’s nomination, also takes the bill of lading in his own name
Grocery, Inc. uses many vendors from individuals to corporate giants. Each is engaged in moving products from the supplier to the retailor. The goal of the UCC is to provide a smooth transaction by promoting efficiency and standard procedures consumers and merchants may rely upon. Article 2 of the UCC helps fill in the gaps of missing details to help complete the sales contracts. These gaps may include a set delivery schedule, a standard order, specific types of products, guarantees for los...
... dispersion. This arrangement viably sponsors the transportation of merchandise into the country parts of the territory. Be that as it may, store administrators have the right to lessen costs of 'container close' things at their carefulness.
Legal Studies Essay Joey Agerholm Exclusion clauses determine the liability of something that might go wrong within a contract. They are used by sellers as an attempt to avoid or limit their liability. The seller has the advantage over the buyer who must agree to the clauses to purchase the product/service. Because of the buyers disadvantage the court takes such cases, involving exclusion clauses, very seriously, and the content of the clauses are carefully interpreted. With the current Trade Practises Act and the Fair Trading Act the standard form of business contract is adequate and effective in protecting the buyer. The Trade Practise Act is the most effective legislation for the protection of the consumer. It implies to the following situations:- - “A promise by the seller that the buyer will become the owner” If a car dealer breaks a promise or part of a contract, for example that he has the right to sell a car, and the car is stolen then although the buyer will have to give the car back he/she will get her money back. - “ A promise by the seller that goods will fit the description supplied by the seller” In this case the buyer is protected if the seller makes a promise, which is a condition of the contract, describing the product, and when the buyer receives the product, it does not match the description. - “ A promise where the seller is made aware of the purpose for which the goods are required, that the goods will be reasonably fit for that purpose” This condition is implied when the buyer makes the purpose of the goods needed known to the seller, and the buyer then relies on the seller’s judgement in providing the correct product. For example it would not be reasonable if you made the seller aware that you wished to purchase something suitable for mowing the average suburban backyard and you were sold a tractor. - “A Promise that goods are of merchantable quality” According to this act a good is considered to be merchantable if they are suitable for the prospect for which other similar goods are sold, involving the description applied to them, the price and any other relevant information. This act does however does not protect the consumer if he/she has examined the product and missed any defects that should have been seen or if the seller made him/her aware of the defect prior to the purchase of the product.
The 10th law of the code states that “If the purchaser does not bring the merchant and the
The organization is able to build a barrier to new entrants in parcel industry. It is very expensive to set up the services that are equal to the existing organizations. There is high fixed cost associated with establishing the required international transport network. This includes ground transportation vehicles, depots, plants and a retail
Container shipping industry is kind of international trade and destined restricted by los of regulation, such as ocean environment law, nation’s imports & exports law.
Despite the importance of globalization, the international intermodal transport systems have seen increased scrutiny to support new freight, volume, and distance regulations when freight moves. The technological improvements continue to permit larger quantities of freight to be moved more efficiently. The intermodal transport systems are crucial to further globalization. However, the transport systems themselves are not necessarily the grounds for greater international trade. Therefore, international trade necessitates dissemination groundwork that can secure the trade between numerous partners. The governing regulations within the international trade agreements substantiate trade measure accomplishments. These factors promote efficiencies or inefficiencies of the transportation groundwork. Furthermore, the transport systems infrastructure encourages or can impede the possibilities of international trade.
International Trade Law Case Study Introduction International trade transaction is essential for the sale of goods with the addition of an international element. In practice, the seller and buyer are in different countries where the goods must travel from the seller’s country to the buyer’s country by various means of transports. In international sale of goods, they usually transit the goods by sea because of the international transactions. Therefore, contracts for the carriage of those goods must be procured between the seller or buyer and common carrier depending on different types of sale of contracts. Moreover, in most of incidences, the agreed goods are usually insured at a reasonable amount in case of being loss or damaged during the transit.
This judgment given set criterion which is still been used in the modern court system and due to this case it was developed that an offer of contract can be unilateral and doesn’t have to be made to a specific party only. Also it was developed to that the acceptance of an offer does not require a notification and that once the concerned party purchases the product the contract is active then and there itself. And it was also established that purchase of an item is a fine example of consideration and therefore makes it a valid contract. (Smith, 2000).
Trade is one of the most important features for a successful economy although trades cannot always be so great they are by affected tariffs, quotas, subsidies or prohibitions by the country’s domestic government. This is where free trade comes into place. It is trade between countries is when there is a policy of no barriers to trade between the countries. This means the policy allows for the unlimited import and export of goods between the countries. The objective is to strengthen trade and commercial ties between the countries. Free trade agreements [FTAs] can be between two countries and/or multiple countries in a region. FTAs are often referred to as an international treaty between the countries and are sanctioned by
... tax tariff. Based on the assumption that the company is exporting the finished goods to major developed countries such as the U.S. and the E.U. the transportation costs is high.
Inventories can also be depicted, and quantities listed. With the proper programming, once an item is ordered, it is subtracted from the inventory, thus showing the proper amount that is actually available for sale. The Internet and international business is an interesting topic- discussing an area of business that will probably be around for many years and possibly centuries to come. Since its earliest days, the Internet has been a means of communication, an essential tool in almost instant communication.
The modern world trades more than seven times as many goods as fifty years ago. If we take out the effects of inflation, the value of goods traded internationally has increased by more than 16-fold in the last half century. The fact that the value of international trade has been increasing more than the weight of goods traded means that the types of good being traded now have changed. Although bulk cargoes such as grain and oil remain important in volume terms, today high value added merchandize is critical.
For the tangible products such like complementary meals, pillow and blanket, AirAsia credit card. For the intangible goods that includes AirAsia
One other peculiarity of a consecutive voyage charter is the time factor as it causes certain structural differences when it comes to costs and income. These contracts will contain bunker clauses or other clauses concerning cost