Commercial Law: Advising Delta Ltd on its Legal Position of Beta Ltd

This article discusses the legal position of Delta Ltd on its contract of sales with Beta Ltd under CIF contract. It covers the Sale of Goods Act 1979, CIF contracts, transfer of risk, and relevant cases. The article provides advice to Delta Ltd on its legal position.

COMMERCIAL
LAW

INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Advise Delta Ltd on its legal position of Beta Ltd.................................................................5
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................11

INTRODUCTION
Commercial law is also known as mercantile laws or trade law which are body of law that
has been applied to the rights, relations and conduct of persons that are engaged in commerce,
merchandising, trade and sales. These law are branch of civil laws and deals with issues of both
private and public law. Further, these laws cover all aspects that is related to trade and
agreements formed in relation to it. Also commercial laws cover trade activities and contracts
which has taken place between parties. Contract law are those laws which is based upon forming
legal agreements between parties. In contract law various elements are used for making contract.
Both contract and commercial laws are used together to form sales agreements which makes
valid selling possible. Scope of contract and commercial laws are wider in nature as it impacts
transactions of trade. The file is based upon various aspects like contract of sales and various
aspects related to it.
MAIN BODY
Case scenario: The case is related to Beta Ltd and Delta Ltd over contract of sales that
has been formed in terms of CIF contract. Under the contract various kinds of terms has been
used which are quality, quantity, shipment, Liverpool governing laws, price. These terms
explained about various aspects which are based upon contract that has taken place within an
organization(Poff, 2020). The laws required to be applied within contract that has taken place
between Beta Ltd entering into charter party with Gamma Ltd. Further, the case is related over
making cargo to Hong Kong with the market value and in this Beta Ltd requires to decide that
the shipment is ti be send within Unicorn that has classed officially as second class vessel. On
20th April 2020 Beta Ltd has made the cargo named Unicorn to agents that has been done in
relation to boll of landing which has been provided over shipment which has to reach on 20th
April 2020. The bill that was formed in relation over goods has been described that the weight of
200000 tonnes and quality is not known. Two weeks later goods has been shipping to abroad
over the port of Manchester then on same day, Beta Ltd obtained with inspection certificate
indicating that percentage of moister is 10.05%. Then an tender has been formed through
shipping documents which includes bill of landing and inspection certificate to Delta payment.

Then in same day Delta Ltd has been paying for the documents and after delivery is done it was
found that moisture level is 20%. This should be evident to any surveyor and Delta Ltd the is
required for making cargo to be sold with significant lower rate.
Advise Delta Ltd on its legal position of Beta Ltd.
The Sale of Goods Act 1979: The act is based delivery of good and their quality. In this
goods delivered or sold must be satisfactory quality and fit for purpose. This act is fit for the
purpose that makes goods provide benefit to meet the purpose for which advertisement has been
formed by the seller. The act has used for marking out various conditions which is required to
meet by trade. These conditions are given as follows:
The goods must be: Described as advert or any verbal description which is made by
trader of the product. Another condition is satisfactory quality: In this minor and cosmetics
defects has been covered with sustainable problems. In this reason ability of product has been
covered. If the fault is genuine then no guarantee is taken at the point of sale. Fit for purpose:
This is another condition within which all kinds of queries in relation to product has been
covered with assurance provided by trader. In this right of rejected goods is only provided over
getting full refund only lasts for short time period making buyer deemed to “accepted” goods.
This does not mean that buyer has no legal redress against the seller, just that he/she isn't entitled
to a full refund. Instead a buyer is first and foremost entitled to have the goods repaired or
replaced. If these remedies are inappropriate, then buyer is entitled to a suitable price reduction,
or to return the goods and get a refund. The act has been covering about second hand
items(McGhee, 2020).
CIF contracts: The contract is based upon cost, insurance and freight that has been use
in international shipping agreement. In this agreement has charged over the paid made by the
seller in order to cover all aspect relate to particular contract which makes cargo transit to be
made. This is only applied over the goods which has to be transported through water ways, sea or
oceans. These goods are exported over buyer’s port that has been named within the contract of
sales. The good has been required for delivering port, the seller requires over bearing costs upon
any kind of loss or damage in relation to the product. In case additional customs duties are

required to be applied over the product with export paperwork inspection its cost is bear by the
seller and by kind of loss to the product becomes sellers responsibility.
According to the contract goods is required to reach over buyer's with there port
destination which has helped in making assumption done over responsibilities in relation to fees
that has been charged for making unloading and delivery of shipment done over final destination.
CIF has been covering about carriage and insurance that is paid over sea and shipments send that
can be used through any mode of transport like truck. In these contracts there are certain
important points which has been covered within the contract and has been explained as follows:
 Cost, insurance and freight which is used within international commerce term that has
been applied over goods shipped through sea or ant ocean.
 Also it covers about cost, insurance and freight seller through these all kinds of aspects
has been achieved.
 As the cargo is delivered over destined port. Then buyer has assumed responsibility upon
cost and goods to be delivered.
 In this risk makes transfer possible with sales and buying in relation when vessel if
loaded.
In this buyer has been taking ownership of goods till the time it has reached to cargo and
has been damaged while making transit done within an on going deal. Also buyer has required
for filing claim with seller's insurance organization(Iqbal and Mirakhor, 2017). CIF has been
making applicability possible in relation to transit of goods that has been send using waterway.
Also the sales has responsibility which makes paying cost and freight regarding shipping goods
over destination and major export is provided in relation to access over ship through CIF and
makes various kinds of responsibility required to be followed by buyer and seller which is given
as follows:
Seller's Responsibilities

 There is requirement for making purchase don upon product.
 Through making inspection done regarding product that has been made.
 In this different perspectives has been changing shipping with loaded goods over sellers
and port.
 In this package exporting of cargo is done.
 Fees regarding customs and exports should be paid by the person selling it.
 The cost has been shipped through sea and water ways making destination produced over
buyers report
 Also the cost of insurance makes should be done at seller's destination(Engebretson and
Harris, 2019).
 Seller are responsible for all kinds of damages and destruction of goods handled by seller.
 Seller has made delivery of goods making agreed with poor delivery required to be given.
Buyer's Responsibilities mentioned within CIF contact has been explained as
follows:
As the goods has been arriving with buyer's destination port and makes assumption which
makes responsibility costs making delivery done within no time.
 The product has been making unloading of port and terminal
 Transfer of product has made delivery done to its targeted destination.
 It makes custom duty charges over importing goods done in effective manner.
 Charge is based upon making goods reach at final destination.
Transfer of Risk
It is important for making analysis when shipping is required to be done for international
trade which has been differentiated over risk and cost upon transfer of point in relation upon

buyer and seller. These are based upon shipping agreement within the CIF contract making risk
transfer regarding cost of transfer. The exact detail upon contract make determination upon
liability which has been transferred through seller and buyer. Under it seller pays shipping,
freight and insurance costs till the time cargo arriving at buyer's destination port. In this risk has
been transferred from seller to buyer after goods has been loaded on the vessel within which
sellers are required to have insurance. If in any case damage is made then buyer is require to file
claim with seller insurance organization.
Special Considerations
Since the buyer has assumed risk only when the cargo has been loaded within the vessel
and in this conditions are there which cannot be suitable they are CIF agreement(Baker, 2020).
For example, the contained cargo shipment those goods are safe in containers for various days.
Before been loaded within the vessel and been send to seller port. In COF contracts buyer would
be at risk as the goods would not be insured while they are set within the container waiting to be
loaded in vessel.
The requirement of a bill of lading to be a good tender
In the CIF contracts denouements that has been tendered over vendor for making
purchase done within landing bill. Through this stipulation is made upon the delivery of goods
and provided various aspects to tender delivering goods. In order to understand this relevant case
law has been given that is Re Denbigh Cowan & Co and R Atcherley & Co in this there are
mere substitution upon delivering order in relation to bill of land within which the terms of
contract is not impart in relation to any obligation making delivery of actual goods in order to
prevent contract from being true CIF contract. Then comes another case which is of Julia in this
international contract of sale in relation to rye CIF Antwerp is given seller the option for
tendering bills of landing or making the order delivered. The seller has been shipped rye in bulk
and tenders bill of landing making order delivered. Also seller has been shipping rye in bulk and
tenders delivery order in relation to quality smaller than entire shipment. The order has been
directed to the seller's agent in Antwerp. It was held by the court that the contract was not a CIF
contract but one for the delivery of goods in Antwerp. As the goods were not so delivered there

are total failure of consideration. It can be said if the seller in Julia vase has chosen to tender bill
of lading and obligations has to be performed with obligation then it would be an CIF contract.
Relevant cases
J & H Ritchie Ltd v Lloyd Ltd
The case is based upon question that is related over rejecting various permissions which
has been mentioned within s 35(6)(a) of the Sale of Goods Act 1979. Also it has been provided
through making virtue of such sections which is required to be accepted regarding goods and
then buyer is having various perspectives making goods agreed upon making arrangement done
over sellers. In House of Lords provided the decision that Mr Ritchie has rejected those
equipment and has been facing repaired. In this case separate inspection and repair agreement
has been formed making wrong ti be conducted in more effective manner. This case has made
new perspective understood about wrong. Also the case has been dealing with lot of aspects that
makes rejection of goods done only when there is fault of buyer and all duties regarding the sales
has not been done on effective manner. This made right of rejection more valid in nature and
making choices to be done fully and more effectively. It made contract of sales become more
valid in nature(Alzola, 2017).
So, it has been observed that international sales of goods contract is an very effective
legislation which has helped in making contract in relation to international agreement formed in
effective way. In this above case international sales of goods contract has been applied as
international agreement has been formed between parties that are Beta Ltd and Delta Ltd. The
contract is based upon delivery of sunflower oil through a vessel name Unicorn. Thus the
delivery of goods exists which is an important part of international sales and goods act which
made the transfer to be done in valid manner. In this CIF contract are used in detail as cost,
insurance and frighit is involved within it. The agreement formed is involves selling cost and
insurance of the sunflower oil. Frighit means amount that has been given by seller. In the end
rejection of goods is applied which could have been done by Delta Ltd on realizing that freeze
point is 20% not 10%.

CONCLUSION
From the above discussion it can be concluded that business laws and ethics are those aspects
that is used by a business organization to develop solid framework in order to enhance business
performance in more impactful manner. As per the essay the concept of social responsibility has
been highlighted. Also responsibilities involved within it is explained with various examples and
initiative in relation to corporate social responsibility has been explained with the perspective of
workplace, marketplace, supply chain, community, and public policy realm. In the end the
concept through documentary has been explained.

REFRENCES
Books and Journals
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and Ethics in Accounting. Emerald Publishing Limited.
Engebretson, K. and Harris, H.L., 2019. Aspirational Ethics in Counseling: Expanding a
Paradigm. Handbook of Counseling and Counselor Education.
Iqbal, Z. and Mirakhor, A., 2017. Key Virtues of Business Ethics in Islam. In Ethical
Dimensions of Islamic Finance (pp. 61-80). Palgrave Macmillan, Cham.
Jansen, B., 2021. New materialism in business ethics: the juridical form as a disciplinary
apparatus. International Journal of Management Concepts and Philosophy, 14(1), pp.64-
80.
McGhee, P., 2020. Levinas and Business Ethics in the ‘War on Terror’. In War, Peace and
Organizational Ethics. Emerald Publishing Limited.
Poff, D.C., 2020. Business Ethics Research and Research Ethics in Business Research.
Handbook of Research Ethics and Scientific Integrity, pp.999-1011.
Rendtorff, J.D., 2020. Totalitarianism, Practical Reason, and Judgment: Philosophical
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Snezhko, S. and Coskun, A., 2019. Liability or Ethics?: The Real Value of Compliance. In The
Circular Economy and Its Implications on Sustainability and the Green Supply Chain
(pp. 198-212). IGI Global.