Contracts of Sale & Carriage: Supply Chain Security Analysis, S-CUS302

This assignment analyzes the role of contracts of sale and contracts of carriage in ensuring supply chain security. The solution explains how these contracts protect the interests of buyers by securing critical commercial terms, including quantity, delivery time, warranties, and remedies. It also highlights their importance for regulatory border agencies like the CBP, enabling them to monitor the legal and safe transportation of goods and services, as mandated by the SAFE Port Act. The contracts provide necessary cargo information, contributing to the smooth and secure completion of transportation processes. The solution references key academic sources to support its arguments.

0SUPPLY CHAIN MANAGEMENT
Supply Chain Management
Name of the Student
Name of the University
Author Note

1SUPPLY CHAIN MANAGEMENT
Explain how contracts of sale and contracts of carriage assist in supply chain security for a
buyer and for the regulatory border agencies?
In the supply chain, the contract of sale is the legal contract which is used for the
purchase of assets by a buyer from a seller for a value in money. Through this legal contract, the
seller transfers the property and there can be the contracts of sale between the one-part owner
and the other part owner (Christopher, 2016). On the other hand, the contract of carriage is
another type of contract that occurs between the consignor and the consignee. The contracts of
carriage usually define the rights, liabilities of the entities involved in the contract. For the
buyer, the contracts of sale and carriages help to secure the factors in the supply chain
(Fredendall & Hill,2016). The critical commercial terms, the quantity, the time duration of
reaching, the warranties and the disclaimer are secured along with the limitation of remedies and
damages. The buyer party can easily claim showing the statements of the contract if any
disruption takes place. These contracts in the supply chain also helps the regulatory border
agencies such as the CBP (Customs and Border protection) to monitor the legal and fare
transportation of goods or services. They can receive the correct cargo information for the
purpose of security. The SAFE Port Act requires all the importers to present 10 elements of data
to the CBP (Monczka et al., 2015). Hence, these contracts are necessary for the smooth
completion of transportation maintaining the security.

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Reference
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Fredendall, L. D., & Hill, E. (2016). Basics of supply chain management. CRC Press.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and
supply chain management. Cengage Learning.