Legal Session 3

International Trade Process:

Consideration: the terms on which both parties making a tradeoff. Should be
lawful.
Promise:
Promise along with consideration is turned into agreement. Any
agreement with consideration is called as void.
Promise + consideration= agreement.
Agreement
Contract: Any agreement which got insights is called as contract. It should be
lawful.
Issues based on such trade will be handled by civil court.
International Contract law:
Same as domestic contract law. There are always risk in domestic risks. And
additional risk
Commercial sales and the law.
Business to business.
Supplier of legal rules.
Comprehensive international sale agreement + subsidiary agreement. ( with
insurance company, banker, Letter of credit)
Multi model transport law:
ATA Carnet system:
System which facilitate the business by taking goods to promote sales.

Questions:
How you reach to stage called promise?
How to make a contract lawful?
What is multi model transport law?
What is additional risk in international business?
Transport risk
Non Payment Risk: Documentary credits.

Quality risk. (Pre shipment inspection agencies. They issue certificate and
registered to respective government)
Exchange rate fluctuation (future contracts)
Legal risks.
Unforeseen events (Force majure clause)
Solution, Example of risk management for export and import

Misunderstanding sol, precautions

Nonpayment (UCP600 by ICC)
Quality
Performance
Importer risk of fraud (ICC investigates)

Distances
Cultural
Political
Exchange
Cash Liquidity
Trade policy
Legal regulation
Interstate economical risks.
E/I duties.
International sanctions.
Natural Calamities.
Licensing rules.
Level of chamber of Commerce.
Language.
Logistics.
Accounting Principle