Term Paper: International Sales Contract Ross T

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[. . .] The preparation of an invoice is very important as well as the procurement of any other possible documents to legally affect a shipment as well as the complying with the contract and other governing laws.

All documents relating to the shipment should be immediately "forwarded and tendered in "due form" and with any "endorsement that may be required for protection of the rights of the buyer.

Unless agreed to otherwise the term C. & F. Or the equivalent has the same effect and imposes upon the seller the same obligations and risks as a C.IF term except the obligation as to insurance. Also unless otherwise agreed upon between the seller and the buyer there must be a payment made or the seller shall not deliver the documents to the buyer.

VI. Section 20

Section 20 is in relation to the third and considered most important rule as it contains the framework for the unconditional contract for the sale of goods in a condition that is deemed to be "deliverable." The contract being made is simultaneous to that of the other. According to this Section it does not matter when the payment is made or of the price which is paid. The conditions are that this contract must be an unconditional one and secondly, the sale must be comprised of that which is deemed to be "specific goods. Specific goods are those that are deliverable according to the terms of the contract." When goods arrive in a "deliverable" state then, at that time, the individual should take delivery.

VII. International Sales Contracts:

The buyer and seller originate from different countries in what is termed "international sales." There is a presumption in this aspect of the law that the buyer does not intend to pay for the property until it has been delivered into the possession of the buyer. Many times the situation arises where there are conflicts or contradictions within the scope of the contract. Such was the case when Lord Wright made his well-remembered statement. The statement of Lord Wright set a precedence in contract law that has great staying power in the very logic that is presented within that statement.

VIII. Prima Facie:

Prima facie within the scope of the law means "as it appears to be," "the facts as they appear to be" or in actuality "the logical conclusion" of what seems to be the agreement between the buyer and seller. For example, if the bill of lading names the seller or the seller's agent the property will not transfer just on the fact of the shipment of the goods. There is no "unconditional appropriation" of the goods of the part of the seller or the seller's agent just because the goods have been shipped to the buyer. On the other hand, if the goods had been shipped with the buyer's name on the bill of lading, then this creates a prima facie case of the property having been legally transferred to the possession and ownership of the buyer, unless, there is other contradicting evidence within the scope of the contract. Also, billing a buyer at the same time as delivery is another way of establishing that no transfer of ownership was intended until payment was made on the goods.

IX. The Issues of Risk in International sale contracts:

The risks associated with international sales contracts are varied. For instance the buyer who has paid for and is in receipt of company goods and those goods appear to be in conformance guidelines according to prima facie evidence. However the buyer discovers that there are problems with the goods and rejects the said goods stating his rejection to the seller.

On a general basis the risk associated with non-deliverable items will pass along with the property. Therefore the seller holds the risk until the goods are carried to the carrier for shipment. Considering that the seller has delivered the goods back to the carrier, then at this time the seller and buyer are in agreement that the seller's obligations are released.

States that the buyer assumes the risk at the moment of the handing over of the goods to the carrier. Usually the determination of the exact point that the goods were moved is unknown. In the F.O.B. cases as well as the C.F.I. cases the only possible "deterioration of goods" are those that are "governed by the rule of risk." Also, if the seller ships the goods and request a higher price at a later date the buyer may reject the contract. Article 69 of CISG makes as a provision the failure of the buyer on taking of the goods, as deeming the buyer risk of loss. Just exactly as has been mentioned in previous programs

Further Examination of Lord Wright's Statement:

The rulings and laws within the realm of contract law are very common sense based and very logical. As this paper has demonstrated the agreement between two parties, the buyer and seller which is referred to as the "course of dealing," very sensibly encompasses any agreement or bargain, between the two at present, in the past concerning this same contract and is inclusive of "usage and trade" or that which is common to the trade which the contract at hand is related in practice or custom or in that particular trade is held as the "model."

Further investigation has shown that the four elements in the Code [2-208(2)] adopts the following beginning rule of measures:

Express terms

Course of performance

Course of dealing

Usage of trade (Corley, 1984)

It is clearly seen that common sense and logic have been allowed to flourish in the formation of what is known as contract law. International Law is an arena that is expanding in terms of knowledge and new business ventures at an amazing rate and unheard of in years past. A question that must be asked of the business and legal community is: "What direction is this global society taking in the business arena and what can make the transition smoother?'

The Uniform Commercial Code, which is law that originated in the United States but has been adapted by some degree by many countries of the globe. The Uniform Commercial Code is an attempt to streamline business laws and processes on the global level. Relating to commercial transactions in the area, or pertaining to personal property.


contract that names a method, place, or time of the transfer of property, or the risk or indeed if the contract names both, the contract will generally and normally upheld by the court even though there is a difference due to the provisions of the Sale of Goods Act or that which is referred to as the Uniform Commercial Code or "standard commercial practice." Unless the case involving the contract is judged to be illegal under the contract law general principles, or causes adverse or uncalled for prejudice to either the buyer or seller, or is against public policy, then the contract will be found valid.

The statutes as well as other judicial precedents of caselaw as well as local more's of expected protocol should be used as guidelines by the parties forming the contract. Contracts are made to be rewritten and modified is the theme of many practicing attonreys due to the fact that no contract is infallible to the point that it will remain forever what is needed by the parties to protect their personal and/or business interests. can very easily be Bibliography

In the Supreme Court of Africa (1999) Highveld 7 Properties et al. v. Timothy Luke Bailes [Online] available at http://kiewiet.uovs.ac.za/facultieslaw appeals/31998.htm

Federal Court of Australia (1999) Westpac Banking Corp v. Stone Gemini [1999] FCA 434 [Online] available at http://jusgments.fedcourt.gov.au/1999/j990434.yes.htm

Smyth Ross T. & Co. Vs. T.D. Bailey & Co. (1940) All ER 60 (HL)

Online] available at http://ourworld.compuserve.com/homepages/pntodd/cases/cases_s/smyth_t.htm

The Contract of Sale (nd) available at [Online] http://outworld.compuserve.com/homepages/pntodd/intr/refs/sale.htm

Corley, Robert M. et al. (1984) Principles of Business Law 12th Ed.

Prentice-Hall, Inc.

Dhuaime (nd) Interpretation of Contracts [Online] available at http://www.duhaime.org/contract/ca-con7.aspx

Lord Wright

Corley, Robert N. (1984) "Principles of Business Law" 12th ed

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