place of destination and the ordinary contract of insurance of the goods on that voyage, and to tender these documents against payment of the contract price. So far as physical arrival of the goods to the buyer is not a condition of CIF contract, it does not mean that the goods may never have been shipped. On the contrary, only provided they are shipped and available for trade, there is no requirement that they actually arrive for the buyer to pay price. Because CIF is a contract performed by the delivery of documents, it is thus ideally suited to on-sale of goods afloat. Obligation of seller to a CIF Contract This is provided for under article 30-44 of the United Nations Convention on Contracts for the International Sale of Goods (Vienna • The buyer is considered to have taken delivery if he does all the acts which could reasonably be expected of him in order to enable the seller to make the delivery, or when he takes over the goods The issue as to whether the buyer must make payments against tender of documents or against delivery of goods was discussed in Biddell Brothers v E. Clemens Horst where the buyer insisted that they would only pay against the goods and not the documents. The buyers had wanted a sample which the seller refused to send. The seller argued that a third party merchant exchange had already provided the buyer with a certificate of quality. The buyer held that since they have a CIF contract, they are free to decide whether to accept goods and pay or accept documents and pay while the seller held that in a CIF contract, payment must be made against documents. LJ Williams in his decision said that payment is due when seller has done everything that was required of him therefore making payment due at symbolic delivery. LJ Kennedy agreed with him holding that payment is due when “possession” passes to buyer, possession in this case being the title in the goods contained in a bill of lading. It was seen that the seller would be unfairly performing twice if he had to deliver the bill of lading and delivery of goods for it to amount to the buyer’s obligation to pay the seller. Further, a CIF contract meant that the delivery of the bill of lading when the goods are at sea can be treated as delivery of the goods themselves therefore the buyer was entitled to pay upon delivery of
First, when a creditor (ICE) extends credit to a debtor (Top Quality) and takes a security interest in some property of the debtor, Top Qualities inventory in this case, it is called a secured transaction. The inventory is then considered collateral for the financing that ICE provided for Top Quality, which was made clear in the financing statement that ICE filed. Any secured transactions where personal property is used as collateral is governed by Article 9 of the Uniform Commercial Code. The UCC was revised in 2001 to better adhere to modern times, and since this case took place from 2007 to 2009, we will be applying the revised edition. There are many sections of Article 9 that should be considered when examining this case. First, the filing of a financing statement, form UCC-1 in Article 9, should be confirmed as filed with the appropriate state office. Once this has been done, confirming the attachment of Top Quality’s inventory to ICE, we can then look to confirm that the initial sale to Chrisman was paid in full to Top Quality, which it was. If this were not the case, ICE would be entitled to the remaining sale proceeds. Now we move on to the requirements of a buyer in the ordinary course of business, per Article 9 of the UCC. According the textbook, “A buyer in the ordinary course of business who purchases goods from a merchant takes the goods free of any perfected or unperfected security interest in the merchant’s inventory, even if the buyer knows of the existence of the security interest” (Cheeseman). The textbook then continues to explain that this rule is necessary because buyers would be reluctant to purchase goods if the merchant creditors could recover the goods if the merchant defaulted on the loans owed to secured creditors. These statements come from the Revised Article 9, section 320(a). This is based on the idea that the buyer purchases in good faith, meaning that they are
...useless car to a junk yard to recover some loss, but the difference of the re-sale of the junk-car would be a significant loss. Though there were no adequate assurances to the contract, anticipatory repudiation is the only probable remedy for Jack. However, the outcome would weigh on the predominant factor test, which is met because Tom is covered as a merchant because he is operating in his usual daily business, and Jack is the buyer. The sole purpose of the contract was for Tom to sell Jack a car, and for Jack to buy a car from Tom. The UCC, though less stringent than the statute of frauds, does effectively regulate commercial transfers allowing the free market to operate without diminishing the integrity of trade.
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...
A Chinese toy manufacturer known as Fan Li approached Tegan to distribute its accessories for its Chinese made products in Europe in the May of 2007. According to the case, it was specified that Tegan’s traditional products had generally been £50 whereas Fan Li’s accessories were priced below £5. As their order’s size decreased, the growth of direct sales to consumers had increased their number of transactions. But it was a threat as Fan Li’s project provided a boost to the sales as tegan said agreed for Fan Li’s agreement. To get the appropriate outputs, Tegan’s account payables played a major role where tegan received discounts on most of its payables in prior payments as per the agreement.
http://www.wto.org. 2013. WTO | Regional Trade Agreements gateway. [ONLINE] Available at: http://www.wto.org/english/tratop_e/region_e/region_e.htm. [Accessed 02 December 2013].
Suppliers must maintain good relations with the companies in the industry. This is low because there are multiyear service contracts and the delivery industry uses items such as vehicles, employee benefits, general goods and airline contracts associated with overhead of running business, but all contracts are rewarded through an RFP process. There are enough players in the market and had high fixed cost and thus have substantial buying power.
ICI’s Legal Department supported the research and investigated all aspects of international law as pertinent to this business proposal.
The goods must also be paid for by various methods of payment to facilitate international trade. This essay aims to analyse the possible claims from our advising buyer G arising from other parties to the contracts involved in this transaction. The essay will also analyse the legal relationships of all parties created that their respective rights and duties may have in the transaction. In doing so, it will discuss sale of contracts on c.i.f.
In the competitive environment, it is necessary for moving products involves reception of products at an intermediate location, store, repackage, clear customs and transport to final destination. The other factor in the supply chain logistics is speed given information flows fast in the internet era. The customer expects everything quick accustomed to the instant status access to the information. With the real time inventory, customer expects the location of the product, it is next scheduled movement and the final delivery schedule.
The basic law of a contract is an agreement between two parties or more, to deliver a service or a product. And reach a consensus about the terms and conditions that is enforced by law and a contract can be only valid if it is lawful other than that there can’t be a contract. For a contract to exist the parties must have serious intentions, agreement, contractual capacity meaning a party must be able to carry a responsibility, lawful, possibility of performance and formalities. Any duress, false statements, undue influence or unconscionable dealings could make a contract unlawful and voidable.
the state is bound as a bailee in such cases even in the absence of contract for such a purpose. In case where the authorities have acted on mere suspicion and have seized the goods according to the procedure established under criminal procedure code. Then until the final decision of the court is declared the authorities have to act as a bailee of goods and the burden of proof is upon bailee to show that he has exercised reasonable care.
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).
A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke,
The following provisions with their terms and conditions shall become an integral part of the purchase order to the extent specified in the purchase order and shall become a supplement to the presently existing terms and conditions of the purchase order. All specifications and standards referenced in thi...
For the tangible products such like complementary meals, pillow and blanket, AirAsia credit card. For the intangible goods that includes AirAsia