International Trade Regulation and Practices

Running head- INTERNATIONAL TRADE REGULATION AND PRACTICES
International Trade Regulation and Practices
Name of the Student
Name of the University
Author Note

International Trade Regulation and Practices1
Facts
 Ali started his clothing company in the name of Alhob Co in Hobart, Australia and
decided to sell Harajuku style clothing and established contact with Benji from
Hajima Co. in Yokohama, Japan.
 Ali agreed to purchase 2500 pieces of clothing and entered the contract on 14th
January 2019. The order value of Ali was 35,000 as for the reason he was
inexperienced Ali entirely relied upon the agents to arrange for the delivery.
 During the negotiations, Benji mentioned to Ali that the shipping would be done by
another company operating in Thailand that is a subsidiary of Hajima Co and it was
specified in the contract that the order would reach Hobart by 10th March 2019
 As soon as the order finished Benji informed Ali that he would soon receive the order
by 20th February 2019. The export formalities were clear, and all the goods left
Thailand with a caused bill stating that there were 20 damaged pieces that Benji
knew.
 Due to specific unexpected occurrences on the sea carriage water seeped into boxes
for the result, 1000 pieces of the goods became mouldy.
 Upon the arrival of the product on Port of Melbourne on the day of 7th March 2019 the
agent that Ali appointed failed to inspect the goods and further forward it to Hobart as
per Ali’s request.
 Due to another event, there was no ship available for the delivery before 9th March
2019.
 As per the negotiation, Ali will receive the order by 10th March 2019 and due to the
situations occurring the agent decided to hire an air service for the delivery of the
goods to Ali that costed an extra of AUD 5000.

International Trade Regulation and Practices2
 Upon the delivery of the goods to Ali, he found out that only 1480 pieces were in
good condition that was merchantable and among then 1000 pieces were mouldy, and
20 were defective, and the final bill that he received was of AUD 40,000.
 However, Ali refuses to accept the order and pay the bill and further sued Benji and
Hajima Co. for the damages incurred to him as he will not be able to sell the goods on
the right time.
Issues
The issue of the case is stated in the polling points:
1. Is there an obligation upon Ali to make the payment of AUD 40,000?
2. Will the claim of Ali be successful?
3. Which party will be liable to pay for the damages to Ali?
4. Will the agent be able to recover the money for the arrangement of the air service and
from whom?
Rule
The rules applicable in the cases include the following sections and articles of the Contracts
for the International Sale of Goods, 1980
1. Article 53 states the obligation of the buyer to take the delivery and make the payment
of the respective goods.
2. Article 57 states that when a buyer is not obligated to make the payment. This article
further states that the buyer will not be obligated to pay the amount at any other place
provided other than the given location. The buyer shall pay the amount to the seller at
the given location and against the goods or services or the documents that were stated
in the contract for sale.