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CHAPTER 1

10. When is a contract binding?

1,What are 5 steps in negotiating delivery?

After the signature date.

Timing, Location, Transport, Risk title and insurance, terms of trade

11. When is a contract binding and effective?

1.2, Why is delivery date important?

After the date of coming into force .

Because it lies at the heart of a sales contract, it’s key to many contract
event

12. How does the date of coming into affect the delivery date?

2,Why is location important?

The delivery date is normally fixed for a certain days after the date of
coming into force.

Transfer risk and Responsibilities, Date of payment depends on palce
of delivery.


A fucking high figure used to threaten the exporter to achieve
acceptable quality

At any point between the signature of the contract and the final
payment for the goods.

17. When do people pass risk and title of the goods ?

7. How many kinds of delay in delivery?

On delivery

Excusable delay, Non- excusable delay

18. Name types of risks?

8. What events does delivery date trigger?

risk of loss and damage, Risk of goods injuring the third party.

Exporter fulfills duties under the contract, Payment may become due,
Risk and title pass to the buyer.

19. Name types of Insurance policy?

9. How to fix delivery date?
To use a straightforward calendar date or interval times.
9.1 The way to write down the delivery date?
Use a straightforward calendar date



Penalties

Quasiindemnity
Predict (know in advance)
Doesn’t know In theory
Sum is normally and fair
in advance
Agreed by 2 parties before putting Not very fair
clause in contract
Not agree in
Sum of money doesn’t depend on advance
factural loss

♥NOTE:

7. Who can offer export credit insurance?
An insurance company.
Time, Structure
9. What does the exporter have to suffer from late payment?
Bank interest
10. What is an incentive for early payment?
A discount
11. How to fix payment date?
A calendar date, Interval times.
12. When delay in payment is excused?

1. Shipping documents: the marine bill of lading, the airway bill, the rail

consignment note, the road consignment note. Combined transport uses

16. In order to take out non- payment risk insurance, what does the
exporter have to do?
Contact an insurance company and explain the details of the business,
applies for a quotation from the insurance.
17. What can we imply when the insurance company refuses to
offer an insurance quotation?

5. Who can offer bank guarantee?
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The insurance company knows the buyer’ uncreditworthiness, The
business is risky.

24. The insurance fee have to pay depend on:

18. What does the insurance premium depend on?

types of goods, the credit worthiness of the buyer, the political stability
of the importer country

The type of the goods, The creditworthiness of the buyer, The stability
of the buyer’ country and so on.

♥NOTE:

19. What is the guarantee triangle?


by the buyer or by the issuing bank
- Confirmed- Unconfirmed: A confirmed Letter of Credit is understood
as the letter of credit to which a confirmation is added by a nominated
confirming bank. Confirming bank means the bank that is asked to
confirm the credit by an issuing bank
- At- sight L/C,
- Back to back L/C,

Settlement by Deferred Payment
Settlement by Negotiation
2.The Letter of Credit and its Associated Documentation
- Commercial invoice
- Transport documentation: sea transport, air transport, rail transport,
road transport and combined transport. The type required is stated in
the L/C.
3.Special problems related to transport document.
There are some problems arising in specific circumstances when
transport document is used as follows:
Shipment by sea: The carrier could issued a marine bill of lading, or a
sea waybill to the exporter.
Shipment by air: The carrier could issued an Air waybill,
Certificate of Origin(C/O) is required for import to the buyer’s country
under a preferential tariff or other agreement.

- Revolving L/C
22. when can use payment account method?
Long term biz relation, depends on situation (keep large inventory), not
very large contract value
23. ads of open acc: encourage high revenur, offer preferensor
condition


Warranty claims buyer can make even if exporter doesn’t express it in
the contract.

The marketing department wants to sell brilliant products, but the
production department can’t make them.
4. What is the benefit of a well- designed set of specifications?
It offers vital protection the both sides. The importer is protected
against inferior products. And the buyer will be unable to find any
excuse for rejection or for exaggerated warranty claims.
5. Which kind of goods need pre- delivery inspection?
Sophisticated items or capital equipment
6. What are the functions of independent inspection?
Prevent exporter and buyer agreeing an unrealistically low invoice price
to avoid custom duties in the buyer’s country. Prevent shipment of
patently defective goods.
7. What does customs inspection reveal?
Customs inspection will reveal discrepancies in weight, size and
description.
8. What is the real inspection for goods?

13. What are Implied Warranties?

14. What are 3 types of Implied Warranties?
Implied warranty of conformity with contract, Implied warranty of
merchantable quality, Implied warranty of fitness for intended purpose
15. What is the main different between Warranty and Guarantee?
Warranty
Guarantee
- a promise about your own - a promise about somebody else’s

- Defective design: does not make specifications
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19. What is not a defect?

3.Give the main characteristics of Anglo-American Law?

Not a defect cover: two common exclusions are fair wear and tear and
misuse by the buyer. Fair wear and tear is the result of normal use.
Misuse is seriously incorrect handling by the buyer.

Goals: Justice in the individual case

20. What does the Defect Liability Provision often mention?
A standard provision mentions the three types of defect, it states a date
on which the products were free of defects, it excludes problems caused
by misuse or wear and tear, and it establishes the exporter’s duty – to
cure the fault.
21. What are the 4 Timing problems in Defect Liability Period?
The Defect Liability Period , the Notification Period, The Rectification
Period, The Legal Action Period
22. What are the 5 options for curing Defects?
Repair, allow the buyer to repair at exporter’s cost, replace(part or
whole item), reduce the price, return the goods and refund the price

CHAPTER 4



Goals: Consistency and uniformity of enforcement
Predictability and consistency of court decisions: Decisions in all but
the most difficult cases are predictable with some accuracy. Decisions
are generally consistent from court to court.
Length and detail of contract: Because the law regulates most problems,
contracts can be short and lacking in detail.
International acceptance: Continental laws do not have the prestige of
Anglo – American laws in international practice. They tend to focus on
national rather than international issues

- the purpose of the contract is legal

7. what is the whereas recital? Why is it necessary?
When the Contract is the “entire agreement”, the lawyers write the
background of the Contract into it through the whereas-recital.
8. what is discharge by performance?
Is the Contract reaches its end normally
9. what is termination?
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Termination occurs when either party pursuant to a power created by
agreement or law puts an end to the contract otherwise than for its
breach.

- Its tendency to be quicker than ligitation (no lengthy appeals
procedure)


16. what are the advantages of using a court?
17. what are the disadvantages of using a court?
18. give the definition of contract documents? Give some exemples
It is the documents that the two sides often wish to “incorporate”
outside material into the contract: letters, general conditions,
Incoterms…
19. when do parties to contract have to agree on the language of
contract? What is the agreement
Two roads:
- The parties say nothing at all, in a dispute, the judge decides which
version to trust
- the parties make two version equally authoritative, again, the judge
decides which version to favor
20. what are the conditions for a arbitration panel venue?

13. what is a panel of arbitrators?
It is courts set up by arbitrators to settle disputes between the parties of
the contract
14. what are the advantages of usuing a panel of arbitrators?
- Privacy
- Business experience of the arbitrators

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