International Trade Law: Legal Analysis of Contractual Obligations

This report provides a comprehensive analysis of an international trade contract, focusing on key clauses and their legal implications. It examines the applicability of Incoterms 2010, specifically FCA, and the relevant laws of the People’s Republic of China, including the Chinese Code of 1999 and the United Nations Convention on the International Sale of Goods (CISG). The report assesses the protection offered to both buyer and seller regarding defective goods, shipment instructions, and compliance with export/import laws. It further evaluates the fairness of the contract's terms and the dispute resolution mechanism through arbitration in Beijing, governed by the Chinese International Economic and Trade Arbitration Commission rules. This analysis offers a clear understanding of the contractual obligations and rights within the context of international trade law. Desklib provides access to similar solved assignments and study resources for students.

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International Trade Law

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Table of Contents
Answer to Question 1.................................................................................................................3
Answer to Question 2.................................................................................................................3
Answer to Question 3.................................................................................................................3
Answer to Question 4.................................................................................................................3
Answer to Question 5.................................................................................................................4
Answer to Question 6.................................................................................................................4
Answer to Question 7.................................................................................................................4
Answer to Question 8.................................................................................................................4
Reference List............................................................................................................................5

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Answer to Question 1
The Incoterms of 2010 in accordance with the standards of the International Chamber of
Commerce are enshrined and envisaged into the contract as implied by the terms and
conditions of the contract accordingly. The Incoterm which can be observed form the contract
is the FCA which means Free Carrier accordingly thereby implying that the place of delivery
would be Melbourne (Papa and Elliott, 2016). It is imperative that the seller would be
responsible for the carriage and insurance taking account of the fact that the bill of lading is
issued in his name accordingly. The term FCA serves as a replacement of the term FOB
which implies Free On Board accordingly in which the seller is liable for all the costs related
to insurance accordingly.
Answer to Question 2
The law pertaining to the municipality of Beijing and the People’s Republic of China are
applicable to the contract of sale in question accordingly as far as Clause 2 of the contract is
concerned accordingly. As a result, the jurisdiction of the contract would be the law of the
People’s Republic of China accordingly as far as the enforceability of the contract is
concerned. It is imperative that the Chinese Code of 1999 would be taken into consideration
accordingly as far as the legality of the contract is concerned accordingly. The principles of
the jurisdiction of civil law would be applicable to the contract accordingly as China is under
the jurisdiction of civil law. As a result, the contract would be executed as per the Chinese
Code of 1999.
Answer to Question 3
The connection of the contract is to be seen and determined accordingly as far as the
application of the law is concerned where there is absence of jurisdiction with reference to
the clauses incorporated in the contract accordingly. The principles pertaining to private
international law is to be taken into account accordingly as far as the execution of the contract
in a proper and appropriate manner is concerned (Svantesson, 2016). The benefits of the
parties in the interest of fairness would be the key thing accordingly as far as Principle XIV
of the Translex Principles of contract is concerned. The aspect pertaining to the conflict of
laws has to be taken into consideration and addressed in a proper and appropriate manner
accordingly.

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Answer to Question 4
The United Nations Convention on the International Sale of Goods is applicable to the
contract as far as the legalities involved in the contract are concerned accordingly. Mo 1.100
of the Chinese Code of Contract Law of 1999 implies that it is applicable to international
sales and is a supplement to the United Nations Convention on the International Sale of
Goods (Lookofsky, 2017). Additionally, if there is a dichotomy between the United Nations
Convention on the International Sale of Goods and Chinese Code of Contract Law of 1999,
then the preference would be over the United Nations Convention on the International Sale of
Goods accordingly as far as international transactions are concerned.
Answer to Question 5
The Clause 5 of the contract is intended to offer protection to the buyer as far as defective
goods are concerned accordingly. It is the duty of the seller to provide goods of the quality
which is acceptable and not sub-standard accordingly as far as Clause 5 of the contract is
concerned. The defective goods must be removed by the seller at the earliest prior to their
delivery to the buyer accordingly. If the goods upon receipt by the buyer are found to be
abysmal and unfit for utilization, the buyer is entitled to recover the amount for the damages
caused form the buyer as far as the concept pertaining to claim of compensation is concerned
accordingly. As a result, the rights of the buyer are justified accordingly.
Answer to Question 6
The Clauses 6, 7 and 8 of the contract imply the protection for both the buyer and seller as far
as the delivery of the goods are concerned with regard to shipment accordingly. Clause 6
implies that the seller has to follow the instructions of the shipment for delivery unless
anything is specified by the purchaser accordingly in writing. Clause 7 implies that the buyer
does have the right to take sample of the goods along with its agents or servants accordingly
provided that the limit is capped at one percent unless the goods are not are accordance with
the specifications. Clause 8 of the contract states that the laws of the country form where the
goods are being exported have to be complied with accordingly along with the laws of the
country where the goods will be received by the purchaser.

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Answer to Question 7
The contract seems to be drafted by the one who is favouring the buyer since it is implied
from the terms of the contract that the buyer has rights and entitlements to as huge level
whereas the seller has indemnities and liabilities to a massive extent accordingly. As a result,
the aspect pertaining to the unfair terms in a contract may be applicable in this matter
accordingly (Mo, 2016). As a result, it is to be seen to what extent the aspect pertaining to
fairness applies with reference to the clauses of the contract accordingly thereby maintaining
a proper and appropriate balance between the vendor and the purchaser as far as the terms
and conditions of the contract are concerned accordingly.
Answer to Question 8
As the jurisdiction implies that the law by which the contract would be governed is the law
of the Beijing municipality and the law of the People’s Republic of China, the resolution
would be at China by the virtue of arbitration in order to avoid litigation in courts
accordingly. The Rules of the Conduct of Commercial Arbitrations of the Chinese
International Economic and Trade Arbitration Commission of Beijing would be applicable as
inferred by Clause 9 of the contract. As a result, the place of jurisdiction with regard to the
settlement of the disputes between the parties is discussed accordingly.

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Reference List
Lookofsky, J., 2017. Understanding the CISG:(Worldwide) Edition. 6th ed. Alphen aan den
Rijn, Netherlands: Kluwer Law International BV.
Mo, J., 2016. International Commercial Law. 6th ed. Chatswood, Australia: LexisNexis
Butterworths.
Papa, D.G. and Elliott, L., 2016. International trade and the successful intermediary. 4th ed.
Abingdon: Routledge.
Svantesson, D.J.B., 2016. Private international law and the internet. 6th ed. Alphen aan den
Rijn, Netherlands: Kluwer Law International BV.