Reference no: EM131109974

Problem 1-

1. Facts

Seller contracted to deliver 1,000 barrels of oil to buyer for £14,000. When the oil arrived, 975 barrels complied fully with the contract description and 25 were contaminated and unacceptable. Oil in comparable barrels was available in the local market for a price of £18 a barrel in 25-barrel lots. Seller offers not to charge the buyer for the barrels.

Apply the CISG to the above contract between Buyer and Seller.

Explain why the CISG will apply and resolve any potential disputes between the Buyer and the Seller.

Your analysis and decision need to include the following:

1. Validity of the contract (consideration, capacity of the parties, legality of the subject-matter, enforceability of the contract).

2. Was the contract written or oral?

3. Has there been an offer and an acceptance?

4. The applicable law and the jurisdiction if applicable;

5. The obligations of the seller and of the buyer;

6. Breaches;

7. Remedy for breaches (fundamental and non fundamental breaches, Nachfrist, price reduction, right of avoidance);

8. Money damages and consequential damages;

9. Events beyond the control of the parties and excuses for non-performance (force majeure, anticipatory breach, frustration of purpose, commercial impracticability).

Questions-

Please answer the following questions based on the material taught:

1. What are the Seller´s and Buyer´s responsibilities?

2. Is there a breach of contract under CISG?

3. If there is a breach of contractwhat remedies are available?

4. What payment is due to Seller?

Problem 2-

1. Facts

You are asked to draft an international commercial sale of goods contract between the Seller Co domiciled in Riyadh and the Buyer Co domiciled in Germany. The Seller Co undertakes to sell an amount of 1.500 kgs of dates, quality "A-premium", for the price of 10 US$/kg. The date of arrival of the goods in Germany is still to be agreed together with the way of payment. The parties agree to draft the contract inspired by the CISG.

Question-

Please answer the following questions based on the material taught:

1. What clauses will you insert in an international commercial sale of goods contract?

Problem 3-

1. Facts

Seller in San Francisco agreed to ship goods to Buyer in London under a CIF San Francisco contract. After the goods were loaded aboard the ship, but before it departed from San Francisco, Seller tendered the documents required by the contract to Buyer and asked to be paid. Buyer refused, asserting that it had a right to inspect the goods upon their arrival in London, and that it did not have to pay until it did so and was satisfied that the goods were in compliance with the contract. Seller sues for immediate payment. Will Seller win?

Apply the CISG as well as the INCOTERMS 2010 to the above contract between Buyer and Seller.

Questions-

1. Is there a breach of the INCOTERMS 2010?

2. What are the Seller´s and Buyer´s responsibilities?

3. Is there a breach of contract?

4. What are the remedies available? 

Problem 4-

1. Facts

Seller in Bombay sells 5,000 bales of cotton to Buyer, C & F (Incoterms 2010) Liverpool.  Seller transports the cotton to the Bombay harbour and to the ship designated by Buyer, the SS Allthumbs. Due to an error in counting, there are only 4,987 bales loaded. The ship's bill of lading, however, shows a quantity of 5,000 bales. Seller then signs over the bill of lading to Buyer in exchange for payment in full for the cotton. When the Allthumbs arrives in Liverpool, the quantity error is discovered, and Buyer sues the ship for the lost value of the missing bales.

Apply the CISG as well as the INCOTERMS 2010 and what you have studied about the bill of lading to the above contract between Buyer and Seller.

Questions-

Please answer the following questions based on the material taught:

1. What are the Seller´s and Buyer´s responsibilities?

2. Is the ship liable?

3. Is there a breach of contract under CISG?

3. If there is a breach of contractwhat remedies are available?

4. Would it matter if the Seller admitted that the error was not the ship's fault, but that of the Seller?

Problem 5-

Describe procedure and transactions involved in the creating of documentary credits.