INCOTERMS And CISG, (CONTRACT FOR THE INTERNATIONAL SALE OF GOODS)
LAW8118-INTERNATIONAL BUSINESS LAW
Examines the impact of the law on the enterprises that conduct international business and on particular transactions entered into by such enterprises. The law concerning the formation and some other aspects of international sales contracts especially pursuant to the CISG as well as the law relating to the international transport of goods by sea and international payments (documentary credits) will be examined. The course will also explore selected legal aspects of one particular regional grouping (namely the European Union). In addition, a study will be made of the law concerning some of the methods by which private international legal disputes are resolved with the focus being on international commercial arbitration.
3. Latest Scenario
• No Economic Boundaries
• Remaining Will Continue To Diminish.
• Business Professionals
• International Influences.
• Progress In A Career In Business,
• Understanding The Managerial, Legal And Cultural
Intricacies Of Doing Business With Partners From
Other Countries In Or Outside.
• Need To Understand And Search Potential
International Business Partners
• The Culture, Tradition And Business Practices Of
Current Partners
4. 1.
INCOTERMS And CISG - governed Contracts For
The International Sale Of Goods
(In 1980 the United Nations Convention on Contracts for the International Sale of
Goods ('the CISG') was introduced to create international certainty and uniformity
in the law and to govern issues that arise in an international sale of goods
transaction. )
2. International Transport Of Goods By Sea.
3. International Payments (Documentary Credits)
4. Regional Groupings - The European Union
5. International Dispute Resolution
5. AREAS
Impact Of The Law On The Enterprises
Conducting International Business
Kind of Transactions Entered Into By Such Enterprises.
The Law Concerning The Formation And Some Other
Aspects Of International Sales Contracts
Examine The Law Relating To The International Transport
Of Goods By Sea And International Payments
(Documentary Credits).
Explore The Legal Aspects Of One Particular Regional
Grouping (The European Union).
Law Concerning Some Of The Methods By Which Private
International Legal Disputes Are Resolved With The Focus Being
On International Commercial Arbitration.
6. FOCUS
Applied Knowledge Of The Law Relating To The Common Forms Of Contracts Used In International
Sales Transactions
Applied Knowledge Of The Law And Legal Ramifications Associated With The International
Transportation Of Goods By Sea
Demonstrate Applied Knowledge Of How International Payments Are Effected By Documentary
Credits And Some Of The Relevant Legal Issues Associated Therewith
Demonstrate An Understanding Of The Changes Brought About By The European Union (EU) - And
Its Legal Order
Identify Complex Problems Regarding The Main Methods By Which Private International Legal
Disputes Are Resolved Especially Transnational Litigation And International Commercial
Arbitration Creatively And Practically
Problem-solving Skills Appropriate To International Business Law
Satisfactory Skills In Communication
Cultural Literacy Skills By Understanding The International Legal Context For Conducting Business.
7. Trade Terms -When Negotiating Sales
Contract
• Internationally Used
• Both Parties
• Seller/Buyer
• ICC
• No Official Status Or Automatic Legal Status
• Only Binding If Adapted By Reference(example: FOB
Brisbane, Australia ,Intercom2010
• Several Sets
• 1963-first
• 2010-lates
8. Example: FOB
• Free on Board» means that the seller delivers when the goods pass
the ship's rail at the named port of shipment.
• This means that the buyer has to bear all costs and risks of loss of
or damage to the goods from that point.
• The FOB term requires the seller to clear the goods for export. T
• his term can be used only for sea or inland waterway transport.
• If the parties do not intend to deliver the goods across the ship's
rail, the FCA term should be used.
10. Incoterms 2010 establish-EXAMPLE
A1 Provision of goods in conformity
with the contract
B1 Payment of the price
A2 Licenses, authorizations and
formalities
B2 Licenses, authorizations and
formalities
A3 Contracts of carriage and insurance B3 Contracts of carriage and insurance
A4 Delivery B4 Taking delivery
A5 Transfer of risks B5 Transfer of risks
A6 Division of costs B6 Division of costs
A7 Notice to the buyer B7 Notice to the seller
A8 Proof of delivery, transport
document or equivalent electronic
message
B8 Proof of delivery, transport
document or equivalent electronic
message
A9 Checking - packaging - marking B9 Inspection of goods
11. Division By Rules
• S makes goods available at own premisesE
• S deliver goods to a carrier appointed by
buyerF
• S contracts for carriage without
assuming risk of loss during shipmentC
• S bears all costs and risks needed to
bring goods to place of destinationD
14. Incoterms 2010
Rules-Two classes
Any mode of Transport
F2C3D3
• EXM
• FCA
• CPT
• CIP
• DAT
• DAP
• DDP
Sea/ Inland Water Way
Transport
F2C2
• FAS
• FOB
• CFR
• CIF
15. ANY Mode of Transport
• Ex worksEXW
• Free CarrierFCA
• Carriage Paid ToCPT
• Carriage And Insurance Paid ToCIP
• Delivered at TerminalDAT
• Delivered at PlaceDAP
• Delivered Duty PaidDDP
16. RULES FOR SEA AND INLAND
WATERWAY TRANSPORT
• Free Alongside ShipFAS
• Free On BoardFOB
• Cost and FreightCFR
• Cost Insurance and FreightCIF
17. but also
• Contract may not be governed by/solely by IC-2010
• IC-2010 don't take the place of a sales agreement or the term and
condition of same
• Don't supply all the terms for an international sale
• Trade terms generally for some general background and context!
(CHUAH)
(REED SMITH COMMENTARY)
(USQ- LIBRARY)
18. Common Terms
• CFR — Cost and
Freight
• CIF — Cost,
Insurance and
Freight
• CIP — Carriage and
Insurance Paid Тo
• CPT — Carriage Paid
To
• FCA — Free Carrier
• FOB — Free On
Board
• DDU — Delivered Duty
Unpaid
• DES — Delivered Ex Ship
• DEQ — Delivered Ex Quay
• DAF — Delivered At Frontier
• DAP — Delivered at Place
• DDP — Delivered Duty Paid
• DAT — Delivered at
Terminal
• EXW — EX Works
• FAS — Free Alongside Ship
