International Trade Law: Assignment
Added on 2021-04-17
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Running head: INTERNATIONAL TRADE LAW 1INTERNATIONAL TRADE LAWNameDate
INTERNATIONAL TRADE LAW2FactsIn the Scenario, Cherry Cherries PL enters a contract for sale with fresh fruit importers who are based in Singapore. The contract provides that the goods will be shipped, and they willarrive in Singapore in less than two weeks. The cherries are loaded to the Keraisa by 30th of November. But keraisa agreed to ship mangoes for another company, who arrive late and it takes time to clear at the port. They hope to arrive at Singapore port by 15th of December and set sail on 3rd of December. One of the refrigeration units is powered off when the generators are blown by the storm. The main generators have been efficient, that no one has ever bothered to fix the backup generators. The keraisa finally limps the port of Singapore in the 19th of December with a quarter of the cherries having not been refrigerated for our days. Theyare below premium quality but still edible. It takes three days to clear at the port in Singapore; hence the cherries are not available until the 22nd of December. CCPL considers delay to be FFIL's fault for not making proper arrangement with the customs clearance.1. The Vienna convention International Sale of Goods Act 198 application in the contract forsale and Carriage.The Vienna Convention on International Sale of Goods 1980 In Article 1 of the convention provides the scope as parties contracting from different states. The convention applies to sale of goods contracts. The convention excludes sales services or sales to
INTERNATIONAL TRADE LAW3consumers'. The convention applies to contracts concluded after offer and acceptance. Just like the above agreement, both parties reach an agreement for sale1.Article 6 (1)2 asserts that risk passes to the buyer when they take control of the goods3or when they take possession of the goods. In the above scenario, the risk is passed when the goods are loaded to the Keraisa on 30th of November. The first risk passes as soon as the commodities are accepted. In a situation where the buyer does not take delivery on the accepted date but goods were delivered, risk passes to the buyer4. In the scenario above, as much as the goods are not shipped immediately due to the delays due to the mangoes' shipment, the risk already passed. Similarly, when the goods arrive at the port, the risk further passes to FFIL, because they were responsible for ensuring clearance was made as early as possible. FFIL did not make such arrangements, and delays further occurred. 6 (2) 5provides thatrisk is passed when it’s time for delivery. Most of the time risk passes when goods are the buyer's possession, in this case, FFIL.In the above scenario, CCPL wants to recover the $75000 it has lost from either of the parties. This loss can be attributed to the ¼ spoilt cherries. We see negligence largely on the part of the FAEE, one for delaying the shipment to 3rd of December and for not ensuring their refrigeration was properly maintained. The risk Passes to them when they take possession of 1Burnett, Robin, and Vivienne Bath.Law of international business in Australasia. Federation Press, 2009.2 The Vienna Convention on The International Sale of Goods 19803Malbon, Justin, and Bernard Bishop.Australian Export. Cambridge University Press, 2014.4Fawcett, James, Jonathan Harris, and Michael Bridge. "International sale of goods in the conflict of laws."OUP Catalogue(2005).5 The Vienna Convention on The International Sale of Goods
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