Assignment on Law of International Trade
Added on 2021-02-19
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International trade Law
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11. Memo stating the comparison between FOB and CIF contract of carriage.............................12. Case of Hamzeh Malas and Sons V. British Imex Industries Limited [1958].........................5CONCLUSION................................................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONInternational trade laws are those set of provisions, rules and regulations that provideguidelines to those business organisations that are performing their business activities atinternational market. World trade organisation is a corporation that has been formed for thepurpose of formation of a range of laws to be followed by the companies in order to trade atglobal lavel. These laws are being formulated in order to maintain competency and fair tradeamong companies trading beyond their geographical boundaries. The international trade lawscontain a range of rules that a global company needs to comply with. Further, non compliance ofany provisions mentioned in the international law may lead in attracting penal provisions overthe defaulter company. In other words, it can be said that international laws are nothing but a setof rules that are being made for the purpose of governing commerce between countries atworldwide. The present assignment contains a memo prepared by a legal advisor showing descriptionof difference between CIF contract and FOB contract made for the international trading purpose.It also advise the best contract to be made by the company in order to enter into an agreement ofconsignment. Further, the study provides information regarding arrangement of payment viadocumentary letter on credit. The description about it is being provided on the basis of a predecided case i.e. a common law. MAIN BODY1. Memo stating the comparison between FOB and CIF contract of carriage.1
To, - The English Biscuit ManufacturersSubject - A memo showing difference between two methods of shipping the goods i.e. FOBand CIF.his is to improve your understanding of the client regarding the two major methods ofthe company. In order to make international transactions, it is required to ship the goods so thatthe goods could be transported to international clients. As the English Biscuit Manufacturershave entered into the contract with Marriott Hotel, Lagos, Nigeria, regarding consignment ofcomprising 100 carton of biscuits, the company would be needed to ship its biscuits so that theycould be transported to Marriott Hotel safely. As per the provisions of international trade law,there are two different methods for entering into contract namely FOB and CIF contract. Bothmethods are different from each other. Further, contains different legal requirements to befulfilled while entering into contract 1. The difference between these types of contracts can beanalysed as under: You must know that CIF contracts are cost insurance and freight contracts that makesseller to be liable to bear the cost of goods, insurance charges and freight charges as well 2. Onthe other hand, FOB contracts refers to free on board contracts. In this type of contracts, theprice of product or goods delivered to customer includes each and every expenses made by theseller until they have been loaded to the board and delivered to customers. Thus it can be saidthat the FOB contract makes the product inclusive of all the costs such as transportationcharges, packing, documentation charges, loading cost, etc. On the other hand, under CIFcontracts make the product inclusive of free on board charges and amount paid by the seller formarine insurance. Also, be aware that CIF contracts are more commonly and commonly used contract forinternational trading purpose. Generally parties entered into CIF contracts when they enters intoa sea borne business contract. When parties to the contract enters into a CIF contract, the selleris deemed to be responsible for making arrangement regarding carriage and insurance of thegoods transacted. In addition, as per the provisions of CIF contracts mentioned in the1Alavi, H., 2018. Delivery terms in transport process of export trade and their effect on therisk of discrepancy in documentary letters of credit; evidence from Estonia.2FOB vs CIF | Difference between FOB and CIF. 2019. [Online]. Available through :<https://accountlearning.com/fob-vs-cif-difference-between-fob-and-cif/>.2
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