NGUYỄN MAI THU – 1701015815 – K56G/A17

CONTRACT Q& A- CHAPTER 1

1. What are 5 steps in negotiating delivery?

There are:

 Timing: when must delivery take place?

 Location: What is the place of delivery?
 Transport
 Transfer of Risk, Transfer of Ownership, Insurance
 Term of Trade
2. Why is location important?
Because there is a fair principle in business: the exporter should have no
liability for the goods when thay are beyond his control. Moreover, the place
of delivery is doubly important to the exporter because the date of payment
normally depends on the place and time delivery
3. Why is transportation important?
Because we have to find th approriate cost and type of transport, have to
think of freight, try to minimize the freight and the best mode of transport
4. What are modes of transportation?
They are:
 Sea transport
 Air transport
 Inland transport ( by rail, road, mail, barge and ny mixture)
5. Where is the risk often passed from the exporter to the importer?
It is often passed at the point of delivery
6. Where does transfer of ownership take place?
It can take place at any point between the signature of the contract and final
payment for the goods
7. How many kinds of delay in delivery?
There are two kinds of delay in delivery: excusable delay, non – excusable
delay
8. What events does delivery date trigger?
The delivery date triggers many contract events:
 - Exporter fulfills duties under the contract.
- Payment may become due
- Risk of the good and the title of the good pass to the buyer.
9. How to fix delivery date?
To fix delivery date, we can:
- Use a straightforward calendar date
- The certain date after the date of coming into force of the contract
10.When is a contract binding?
After the signature date (date of execution)
11.. When is a contract binding and effective?
After the date of coming into force (effective date)
12.How does the date of coming into effect the delivery date?
The delivery date is normally fixed for a certain number of days after the
date of coming into force
13.What is excused delay?
Excused delay is in the grace period and due to force majeure
14.What are the 3 outcomes of FM?
They are:
- Resumption of delivery
- Termination of contract
- Unclear and dangerous situation

15. What are liquidated damages?

They are a fair figure, a lump sum to be paid per day of late delivery. The
compensation fixed in advance is called liquidated damages

16. What are penalties?

They are the damages to be paid to compensate one party for the loss
17.Explain the differences between liquidated damages and penalties
 Liquidated damages:
 Motive: Compensate the buyer fairly for any delay in the delivery
 Enforecable everywhere but subject to increase or decrease in some
legal systems
 Penalties:
 Motive: Terrorize the exporter into punctual delivery
  Not enforecable in English law or other common law systems
18.Name types of Insurance policy?
There are 6 types of insurance policy:
 Floating policy and open policy
 Valued policy and Unvalued policy
 Time policy and Voyage Policy
19.What are main functions of ocean BL?
They are:
 A contract for delivery of the goods
 A document of title to the goods
 A receipt for the goods

20. What are requirement of BL when payment is made by LC?

- 3 original BL and 3 copy non-negotiable BL