CHAPTER 1: NEGOTIATING DELIVERY

A. Five steps in negotiating delivery

I. Timing
When must delivery take place?
- The date of dispatch from the factory
- The date of loading onto a ship
- The date when the goods should arrive in destination
1. What factors do exporters consider in choosing the right date of delivery? ( 4
factors) => The Exporters must know how long it takes to :
- Obtain supplies
- Manufacture the goods
- Package the goods
- Arrange pre-shipment inspection
2. What might be the consequences of miscalculating the date of delivery?
- Two early:
+ Exporter: pay a heavy penalty
+ Buyer: Have his money tied up in unused goods
- Too late: => Buyer: result in big financial losses.
3. How important is the date of delivery ?
The delivery date triggers many contract events:
- The exporter must complete primary duties under the contract
- Payment becomes due
- Risk and title pass to the buyer.
- Exporters must pay compensation to the buyer in case of late delivery.
4. How to fix the date of delivery? ( Ấn định ngày giao hàng)
- Date of delivery is fixed for a number of days after the date of contract coming into
force.
- Date of delivery can be any calendar date.
5. What does the contract come into force?
- Date of contract come into force( có hiệu lực) is not usually a calendar date but the
date on which the last precondition is meet
- Preconditions for the sale include:
+ Receipt of import and/or export approval
+ Receipt of foreign exchange approval (phê duyệt ngoại hối) from a central banks
+ Issuance of a LC or bank guarantee
+ Making of down - payment by the buyer
+ Issuance of an insurance policy
+ Issuance of a Certificate of Origin
+ Delivery by buyer of plans, drawings or other documentation.
NOTE: documentation: tài liệu nói chung # documents (PHẢI CÓ S): chứng từ
(nhiều)
6. Cut-off date ( rút ngắn ngày)

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 Negotiation often agrees a cut-off date: if the contract has not come into force within
a certain time, for example three months from signature, then it becomes null and
void( vô hiệu )

● Ví dụ về điều khoản Coming into Force

“This Agreement shall come into force after execution by both parties on the date of
the last necessary approval by the competent authorities in the country of the seller
and the buyer. If the contract has not come into force within ninety days of
execution,it shall become null and void. The date of delivery shall be twenty - eight
days after the date of coming into force of the contract.”
=> Sau khi các bên ký kết hợp đồng, HĐ sẽ có hiệu lực vào ngày các cơ quan có thẩm
quyền tại nước người mua và người bán hoàn tất phê duyệt cuối cùng. Nếu HĐ không
có hiệu lực trong vòng 90 ngày kể từ khi ký kết , hđ sẽ bị vô hiệu. Hàng hóa được
giao vào ngày thứ 28 kể từ khi hđ có hiệu lực.
NOTE: date of delivery => DỊCH LÀ HÀNG HÓA ĐƯỢC GIAO (chứ không phải ngày
giao hàng)
7. “ Time is of the Essence” (thời gian là thiết yếu) clause( điều khoản)
- If punctual delivery is essential, the contract will include the following clause: “ Time
is and shall be of essence of this contract”
- If the time is not kept, the buyer has the right to send back the goods and refuse
payment.
8. Delivery goods with and without Grace Period ( thời gian ân hạn )
- Grace Period: A grace period is a period after the delivery date during which a late
fee, or other action that would have been taken as a result of failing to meet the
delivery date, is waived (bỏ) provided that the obligation is satisfied within the period.
(Là quãng thời gian sau ngày giao hàng mà trong khoảng tgian đó, tiền phạt nộp
chậm hay các hành động khác là hậu quả của việc giao hang ko đúng hạn, sẽ được
bỏ qua nếu hoàn thành nghĩa vụ trong giai đoạn đó) => Should be stated in the
contract
+ Without Grace period: “ For each week of late delivery the seller shall pay the buyer
0.1% of the contract price”
+ Grace period: “ If delivery is not effected within one month of the agreed delivery
date, then the seller shall pay the buyer 0.1% of the contract price”
? If you were the seller => Grace period
+ Because of advantages to both sides if early delivery is possible
+ Buyer gets the goods and exporter receives payment up to a month earlier than
planned
+ These advantages are achieved without additional risks.
9. Excused delay (Trì hoãn miễn trách) and Force Majeure
- Force Majeure( a French expression) means a superior power
- Other synonyms( từ đồng nghĩa):
+ Act of God ( law): an event caused by natural forces beyond human control

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 + Contingency/contingencies ( dự phòng ) : A future event or circumstance that is
possible but can not be predicted with certainty or an event that may or may not
happen.
?What is Force Majeure?
“ Unexpected and unavoidable events such as a warm crime, or an earthquake which
prevent people from doing something that is required in a legal agreement”
Ex: A Force Majeure clause:
“ If either party is prevented from, or delayed in performing any duty under this contract by
an event beyond his reasonable control, then this event shall be deemed force majeure, and
this party shall not be considered in default and no remedy, be it under this contract or
otherwise, shall be available to the other party.
Force Majeure events include , but are not limited to : war ( whether war is declared or not),
riots, insurrections, acts of sabotage, or similar occurrences; strikes, or other labor unrest;
newly introduced laws or government regulations; delay due to government action or
inaction; fire, explosion, or other unavoidable accident; flood, storm, earthquake, or other
abnormal natural event.”
=> Dịch:
“ Nếu mỗi bên trong hợp đồng bị cản trở hoặc chậm trễ trong việc thực hiện bất kỳ nghĩa vụ
nào của hợp đồng bởi 1 sự kiện nằm ngoài tầm kiểm soát hợp lý của mình thì sự kiện này
được coi là bất khả kháng và bên đó không được coi là vi phạm nghĩa vụ hợp đồng và không
phải bồi thường cho bên còn lại cho dù hợp đồng có quy định hay không .
Các sự kiện bất khả kháng bao gồm nhưng không giới hạn : chiến tranh( cho dù chiến tranh
có được tuyên bố hay không), bạo loạn, các cuộc nổi dậy, hành động phá hoại và các sự kiện
tương tự, đình công hoặc sự bạo loạn của người lao động, những luật lệ và quy định mới ban
hành của chính phủ; trì hoãn do hành động của chính phủ hoặc không hành động, hỏa hoạn,
cháy nổ hoặc các sự kiện không thể tránh khỏi khác; lũ lụt, bão, động đất, hoặc các hiện
tượng thiên nhiên bất thường khác.”
? Should the parties wait for the Force majeure event to last forever?
A party might choose to terminate the contract if the force majeure continues for months with
the following clause:
“ If either party is prevented from, or delayed in performing any duty under this contract ,
then this party shall immediately notify the other party of the event, of the duty affected, and
of the expected duration of the event. If any force majeure prevents or delays performance of
any duty under this contract for more than sixty days, then either party may on(sau
khi=after) due notification to the other party terminate this contract”
=> Dịch:
“ Nếu một trong hai bên bị cản trở hoặc bị trì hoãn trong việc thực hiện bất cứ nghĩa vụ nào
theo hợp đồng này, bên đó cần phải ngay lập tức thông báo cho bên còn lại về sự kiện, nghĩa
vụ bị ảnh hưởng và thời giạn dự kiến kéo dài của sự kiện. Nếu sự kiện bất khả kháng cản trợ
hoặc trì hoãn sự thực hiện của bất cứ nghĩa vụ nào theo hợp đồng này trong khoảng thời
gian vượt quá 60 ngày, một trong hai phía có thể thông báo cho bên còn lại về việc chấm dứt
hợp đồng này.

BT DỊCH 12/8/2022:

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Người bán/nhà cung cấp phải đảm bảo một giấy báo vận chuyển đi kèm với mỗi chuyến vận
chuyển hàng hóa. Phiếu giao hàng nêu rõ (shows) mã (number) đặt hàng, mã giao hàng,
miêu tả hàng hóa, số lượng kiện hàng và tổng trọng lượng. Bất chấp điều khoản (clause) 4.1,
người bán không có nghĩa vụ/khước từ trách nhiệm (cụ thể là người bán từ chối trả tiền
phạt) khi chứng từ giao hàng bị sai sót hoặc bị thất lạc.
Quantity piece: kiện hàng
 Quantity: tổng các kiện hàng
Have no liability: khước từ trách nhiêm
For the avoidance of doubt: tránh hiềm nghi, nghi ngờ => cụ thể là

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4.2. Người mua không được hủy hoặc sửa đổi đơn hàng trong vòng 48 tiếng trước ngày giao
hàng. Người mua phải gửi thông báo bằng văn bản cho người bán nếu hủy hoặc sửa đổi đơn
hàng.

? Three outcomes of Force Majeure ( 3 hậu quả của bất khả kháng)( regulated in the
contract)
- End soon: Resumption of delivery
- Too long: Termination of contract ( by the buyer)
- Too long: Unclear and risky situations for both sides
10. Unexcused delay ( trì hoãn không miễn trách) and buyer’s remedies
When Unexcused delay occurs, there are two remedies for Buyer:
- Civil Law: The court issues a “decree of specific performance”( Sắc lệnh yêu cầu thi
hành nghĩa vụ hợp đồng ) requiring the exporter to make delivery as agreed
- Common Law:The court requires the exporter to pay the buyer compensatory
damages
? What are the damages ? : Sums of money paid to compensate the injured party.
?The amount of damages is decided after 3 questions are answered:
+ Did the loss probably follow from the breach (thiệt hại có phải do lỗi của vi phạm
không)
+ Was the loss reasonably close to the breach in the chain of events? ( Thiệt hại có liên
quan đến việc giao hàng muộn không )
+ Was the loss mitigated ( làm giảm nhẹ) or did the buyer take reasonable steps to keep
the loss as small as possible? ( Có cố gắng làm giảm thiệt hại không )
? What might be a better solution to late delivery?
- A: Liquidated Damages ( tiền bồi thường định trước)
+ The lump sum ( tổng số tiền ) to be paid per day ( week or month) of late delivery.
+ The court might increase the figure or decrease the figure for damages , depending on
country’ law. ( fair amount to real loss)
- B: Penalties ( Tiền phạt vi phạm )
+ A type of punishment given for a party for not performing its duty
+ The amount of penalty is usually very high ( higher than the real loss)
- C: Quasi - indemnity ( tiền tương đương bồi thường )
+ An amount of compensation fixed by exporter to relieve his responsibility for late
delivery
+ The compensation is usually very low.( Lower than the real loss)

Liquidated damages Penalty Quasi - Indemnity

Motive ( Mục đích) To compensate the To terrorize ( răn đe) To relieve the
buyer fairly for any the exporter into exporter of liability
delay punctual(đúng for delay in delivery
hạn )delivery

Enforceable ( tính áp Everywhere but To terrorize ( răn đe) Everywhere but open

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 dụng ) subject to increase or the exporter into to challenge as “
decrease in some punctual(đúng unconscionable”
legal systems hạn )delivery (Không có lương
tâm )

Ex1 Liquidated damages clause:

“ If the seller fails to supply any of the goods within the time period specified in the contract ,
the buyer shall notify the seller that a breach of contract has occurred and shall deduct from
the contract price per week of delay, as liquidated damages, a sum equivalent to one half
percent of the delivered price of the delayed goods until actual delivery up to a maximum
deduction of 10% of delivered price of the delay goods”

=> Dịch : Nếu người bán không giao bất cứ phần hàng nào trong thời gian quy định của hợp
đồng , người mua sẽ thông báo với người bán rằng đã có sự vi phạm hợp đồng và sẽ khấu trừ
vào giá trị của hợp đồng theo từng tuần tuần trì hoãn , khoản này sẽ được xem là khoản bồi
thường định trước . Cứ mỗi tuần giao hàng chậm , người bán phải trả 0,5% giá trị hàng hóa
bị giao chậm cho đến khi giao hàng xong .
“ If the seller fails to delivery the goods at the fixed date, a fine shall be imposed( áp đặt )
upon him for the period of delay until delivery is completed. The fine shall be as follows:
- 2% for the first week, or any part of it
- 4% for the second week,....
- 6% for the third week,...
- 8% per week for the fourth week, or part of it , and for all the succeeding weeks
The fine shall be calculated as the total contract value.”
=> Dịch : Nếu người bán không giao hàng , người bán phải trả một khoản tiền phạt cho đến
khi hoàn tất giao hàng. Khoản tiền phạt sẽ được xác định như sau:
- 2% giá trị trong tuần đầu , hoặc bất kỳ ngày nào trong tuần đầu
- 4%...
- 6%....
II. Place of delivery
? Why is place of delivery important?
- Control and Responsibility go together
- Date of payment depends on the place and time delivery
- Risk and ownership often pass at the place of delivery
1. Definition
- Delivery is normally supposed to be arrival of goods at destination but this is not
accepted in contract language
- The parties have to clarify what they mean by place of delivery
=> Place of delivery is point of which exporter passes responsibility for the goods to buyer
- Place of delivery may vary depending on the terms of trade chosen by both parties
EX:
- FOB : Delivery takes place when the goods cross the rail of a ship(lan can tàu)
nominated by the buyer “ If the vessel named by the buyer fails to arrive on or before

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 the agreed delivery date, then the seller may at his discretion delivery the goods to a
bonded warehouse ( kho ngoại quan) in the port of Hai Phong, and shall be deemed
to have fulfilled( hoàn thành) his delivery obligations under this contract”
=> Nếu tàu được chỉ định bởi người mua không đến vào hoặc trước ngày thỏa thuận, người
bán có toàn quyền giao hàng tại kho ngoại quan ở cảng...và được coi là hoàn thành nghĩa vụ
giao hàng theo hợp đồng.
- CIF: “ Delivery of the goods shall be made CIF ( Haiphong). The scheduled date of
delivery shall be 1 December 2018. Risk and title to the Goods shall pass from the
seller to the buyer on delivery . The place of delivery under this contract is ( Osaka )”

III. Transport
? What mode ( phương thức) of transport is most appropriate?
The choice of transport is subject to the nature of goods, customer’s wishes, speed, cost,
safety, terms of export sales contract…
- Inland transport : by road, rail, barge ( xà lan), mail, or by mixture
- Overseas transport: air, sea,..
Transportation of goods requires proper( thích hợp ) packaging, shipping marks, and
documentation ( Chứng từ )
? Why is transportation important?
- Appropriate cost ( including freight) and type of transport
? Three aspects of transportation
Physical safety of the goods which means:
- Appropriate packaging ( Đóng gói đúng quy cách)
- Correct making ( Ký mã hiệu phù hợp)
- Correct documentation ( Chứng từ phù hợp)
1.1. Packaging
- Clause : “ Goods are to be packed in new, strong, wooden cases suitable for long-
distance ocean transport and are to be well protected against dampness , shock, rust
or rough handling. The seller shall be liable for any damage to or loss of the goods
attributable to ( do) improper( không phù hợp, sai) or defective ( khuyết
tật)packaging”.
=> Hàng hóa phải được đóng gói trong thùng gỗ mới, chắc chắn, phù hợp với vận chuyển
đường biển đường dài và phải được bảo vệ tốt khỏi ẩm ướt, va đập, rỉ sét và bốc dỡ mạnh tay.
Người bán phải chịu trách nhiệm cho bất cứ tổn thất nào của hàng hóa do đóng gói sai quy
cách hoặc bao bì có khuyết tật”
- Common types of packaging: Drum( thùng phi), Wooden crate( thùng gỗ), pallet...
- 3 common packaging problems:
+ Packaging of dangerous goods is subject to special regulations in all countries
+ Some national laws require fumigation ( khử trùng) all containers
+ Some packaging materials are strictly ( nghiêm ngặt) forbidden( ngăn cấm) in
agriculture-based countries such as hay( cỏ khô), straw (Rơm), and rice husks (
trấu)
1.2. Shipping mark( Ký mã hiệu)

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 - Handling mark,Gross weight, net weight
- Clause: “ On the surface of each package delivered under this contract shall be mark:
the package number, the measurement( kích cỡ ) of the package, gross weight, net
weight, the lifting position, the letter of credit number, the words right side up,
handle with care, keep dry, and the mark : DNP/36/Q” => “ Trên bề mặt mỗi kiện
hàng được giao theo hợp đồng sẽ được kí hiệu : số lượng hàng, kích thước, trọng
lượng gộp, khối lượng tịnh, vị trí nhấc hàng, số thư tín dụng , thêm dòng chữ : dựng
thẳng, nhẹ tay, giữ khô và kí hiệu…”
1.3. Shipping document
- The most important document is the Bill of Lading ( BL): is a Legal document issued
by a carrier ( người chuyên chở) to a shipper that details the type , quantity, and
destination of the goods being carried.
? 3 Function of BL:
- Contract of carriage( hợp đồng chuyên chở) entered into between the “ Carrier” and
the “ Shipper or Cargo Owner” in order to carry out the transportation of the cargo
- Receipt of Goods( biên lai nhận hàng) issued by the carrier or their agent to the
shipper or their agent as a proof of receipt of the cargo
- Document of Title to the Goods ( Chứng từ sở hữu hàng hóa)
? Negotiable or not? (A marine BL)
- Must indicate that the goods have been loaded on a named vessel ( Vận đơn nêu rõ
hàng được chất lên tàu chỉ định)
- The consignor ( the person or business shipping the goods- người gửi hàng) must
stamp and sign the bill ( Để có thể chuyển nhượng, người chủ hàng phải đóng dấu và
ký hậu vận đơn)
- Clean BL( là vận đơn hoàn hảo)
- A negotiable BL must be written to the order of consignee.
+ To order bill( vận đơn theo lệnh): Thường thì tên trên bill gốc không thể hiện tên
consignee mà chỉ để chữ “ to order” tại mục consignee. Vận đơn này miễn người nào
cầm vận đơn gốc và được xác nhận ký hậu của shipper là có thể nhận hàng => BL is
negotiable: vận đơn chuyển nhượng được( vận đơn đích danh)
+ Named endorsed B/L (vận đơn đích danh) is not negotiable.
? Different type of BL:
+ A marine BL
+ Ab airway bill ( vận đơn hàng không)
+ A rail consignment note( chứng từ vận tải đường sắt )
+ A road consignment note( chứng từ vận tải đường bộ)
+ A combined transport BL ( Vận đơn vận tải liên hợp )
? Unclean/clean shipping document:Have common notes( phê chú) including :
+ Contents leaking ( ruột hàng rò rỉ)
+ Packaging spoiled( bẩn) by contents
+ Packaging broken/holed/torn( rách)/damaged
+ Packaging contaminated ( bị ô nhiễm)
+ Goods damaged/scratched
+ Chafe( trầy xước)/deformed( biến dạng)/torn

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 + Packaging badly dented( lõm)
+ Packaging damaged - contents exposed( lòi ra ngoài)
+ Insufficient( không đủ) packaging
=> Not all notes are considered to be “ claused”
Ex:
+ Second-hand/reconditioned packaging materials used( vật liệu đóng gói hàng được tái
sử dụng)
+ Packaging repaired/mended/resewn/coopered( được đóng lại vào thùng)
+ Unprotected
+ Unboxed
IV. Transfer of risk, ownership and insurance
? When risk is transferred from exporter to importer?
- At the point of delivery
- Risk and insurance go hand in hand , the party facing a risk shall arrange insurance.
? Transfer of ownership/title: can take place at any point btw signature of contract and final
payment for the goods.
? Terms of Trade: The international Chamber of Commerce ( ICC) in Paris first issued 13
Incoterms ( International commercial incoterms) in 1990
1. Definitions
- Insurer/Underwriter/Insurance company( Người/công ty bảo hiểm)
- Insured/Assured( Người được bảo hiểm)
- Subject matter insured ( đối tượng bảo hiểm)
- Risk insured against ( Rủi ro được bảo hiểm)
- Insurance premium ( Phí bảo hiểm)
- Insured value ( Giá trị bảo hiểm)
- Insured amount ( Số tiền bảo hiểm)
2. Two risks involved in the sale of goods
- Risk of the goods injuring a third party
- Risk of loss or damage ( more significant)
3. Transfer of title
- National laws do not agree on the point of passing ownership of goods=> Passing
ownership of goods is dispositive ( không phân biệt)
- Many exporters expect to keep legal ownership until the full payment is made but this
ownership is of little value. Why?
=> It’s too complicated and costly to bring the goods home.
4. Insurance
? Who is responsible for arranging insurance cover? Exporter or Buyer?
There are 2 schools of thoughts on this matter.
- Point of delivery is decisive ( Điểm giao hàng mang tính quyết định)
=> Up to the delivery, the exporter insures, after the delivery the buyer insures
- Exporter should insure:
+ They have standing arrangement with an insurance company
+ They can declare the details of their products
4.1 Important notes:

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 - It’s up to the two sides to reach an agreement on the terms that best meets their needs
- Insurance cover under CIF and CIP contracts is for the value of the goods plus 10%
( the expected profit of the buyer)
- Cover is in the currency of the contract
- By endorsing( Chứng thực) the certificate of insurance, the exporter can
assign/transfer the full right to the buyer. This can be done after goods are lost
4.2. Policy, Certificate or Letter of Insurance
- Insurance policy ( Hợp đồng bảo hiểm): a contract between the insurer and the
insured
+ It is time-consuming to prepare an insurance policy, especially when a number of
underwriters ( Người bảo lãnh) are involved.
=> Uncommon and impracticable to take out an Insurance policy
- Certificate of Insurance:( Giấy chứng nhận bảo hiểm): a document covers each
individual shipment.
Many exporters have an agreement with an insurance company covering all their
shipments over a period of time.Each individual shipment is covered by a Certificate
of Insurance, not by a full policy:
+ States in outline the cover offered
+ Gives the details of the individual shipment.
- Letter of Insurance
+ This is simply a letter from exporter to buyer stating that the goods are insured
+ It has no legal force except as evidence in a lawsuit against the exporter.
4.3. Type of Insurance Policy
Based on the description of insured ship, goods or insured subject matter
- Floating Policy( Hợp đồng bảo hiểm thả nổi)
- Open cover ( Hợp đồng bảo hiểm bao nhiều chuyến)
Based on the value of the insured subject matter
- Valued policy ( Hợp đồng bảo hiểm định giá)
- Unvalued Policy ( Hợp đồng bảo hiểm không định giá)
Based on time period
- Voyage Policy ( Hợp đồng bảo hiểm chuyến)
- Time Policy ( Hợp đồng bảo hiểm thời hạn)

In common Difference

Floating Policy -Both offer exporter insurance cover on -Floating Policy:

vs Open Cover all shipments over time period
-A ceiling is set on the overall figue-for
example,$1 milion
-As each individual shipment is made,
exporter declares the value of the
shipment and the ceiling is automatically
reduced by that amount and that
+Set up for a particular time and
automatically expire unless being
renewed.
+Each delivery is covered by a policy
-Open cover is open-ended. It does not
expire although there are provisions for
cancellation on due notice=> Open

10
 shipment is covered by a Certificate of
Insurance. Exporter has a pad of these
certificates and simply fills out a new
one for each shipment
cover is more convenient
+ Open Cover is not an insurance
policy at all. It is an agreement by an
insurance company to issue an
insurance policy if the insured asks for
one. Normally, he only creates a
Certificate of Insurance with the
knowledge that if he wants a policy, he
can get one at any time, even after a
loss=> Open cover is less formal, less
time-consuming but extremely
reliable.

Valued Policy -Valued Policy: is the policy in which the exporter states the value of the goods on
vs Unvalued the insurance document
Policy -Unvalued policy is the case where the exporter did not state the value of the
goods being insured with the insurer. Then the value of the goods can be
established after a loss. The exporter must prove his figures precisely.As long as
the figure is less the the total cover under the policy , the insurer shall pay

Valued policy is preferred today because the pre-stated figure can include not
only the cost of the goods but also the profit the exporter hoped to make them.

? Insurers have various ways of limiting claims under such cumulative agreements( hợp đồng
tích lũy). General claims are kept down by:
- A limit per bottom( a “ bottom” is a ship)
- A limit per locality. ( The exporter’s warehouse is a “ locality”. A warehouse may
contain several consignments awaiting shipment. If they are all destroyed, the locality
limit will probably bite)
Insurance companies also generally add the institute Maintenance of Class Clause( Điều kiện
bảo hiểm), this requires that all ships used by the exporter are in certain class in the shipping
register.
=> 7 common types of insurance policy
4.4. Cargo clause A,B, or C
Developed by the ICC as a means of Insurance for cargo transit from original location to
its final location
- Institute Cargo Clause A is considered the widest Insurance Coverage=> The insured
pays the highest premium for total coverage,
- Institute Cargo Clause B is considered a more restrictive coverage=> the insured
expects to pay moderate premium because only the more valuable items in the cargo
is covered or only partial cargo coverage
- Institute Cargo Clause C is considered the most restrictive coverage=> The insured
pays the lowest premium ( not including weather risks)
● Cargo Clause B vs Cargo Clause C
Only difference between Institute Cargo Clause B and C is the additional risks
covered under ICC (B) cargo insurance policies: ( Cargo C does not include these)

11
 - Loss of or damage to the subject-matter insured reasonably attributable to earthquake
volcanic eruption or lightning
- Loss of or damage to the subject-matter insured caused by entry of sea lake or river
into vessel craft hold conveyance container or place of storage
- Total loss of any package lost overboard or dropped whilst loading on to, or
unloading from, vessel or craft
● Cargo Clause A vs C
- C covers very limited risks as a result it is called as a minimum cover insurance
policy
- A covers wide range of risks as a result it is call as a “ All risk” cargo insurance
policy
- Insurance premium would be substantially different between these two policy types
- C is the cargo insurance policy type which is requested by the Incoterms 2010 rules
- A is the cargo insurance policy type which is requested by the issuing banks under
letter of credit transactions.
V. Terms of trade
- The Incoterms( abbreviation of International commercial terms) rules developed by
the ICC was created as an industry standard of facilitate international trade and for the
interpretation of the trade terms that the parties to the contract of sale could agree to
apply
- There have been 8 revisions to the set of Incoterms rules first introduced in 1936. As
global trade developed and evolved, the Incoterm rules were revised in
1957,1967,1976,1980,1990,2000,2010 and 2020 to accommodate changes in global
trade
- The ICC publication, INCOTERMS 1990, gives full and clear information about the
rights and duties of buyer and exporter in the Incoterms contract.
Incoterms 1990 of ICC includes 13 terms on the basis of 3 variables:
+ Where along the transportation route delivery takes place, ( Địa điểm giao hàng
ở đâu)
+ What means of transport is used ( Phương tiện giao hàng sử dụng)
+ What costs the exporter might pay after the point of delivery ( Người bán chịu
những chi phí gì)
13 terms are grouped in 4 categories:
+ E-term
+ F-terms
+ C-terms
+ D-terms
● Conflict between Incoterms and Contract
Example of a careful contract:
“ Incoterms 2010” as used in this contract means the publication “ Incoterms 2010” is
being the international rules for the interpretation of their terms published by the ICC.
When a term from”Incoterms 2010” is used in this contract, the rules and definitions
applicable to that term in “Incoterms 2010” shall be deemed to have been incorporated

12
in the contract except insofar as they may conflict with any other provision of the
contract, in which case the contract provision shall be prevail.
=> Incoterms 2010 sử dụng trong hợp đồng này là phiên bản incoterms 2010, bộ quy tắc
quốc tế do phòng thương mại quốc tế ban hành để diễn giải các điều khoản thương mại. Khi
một điều khoản trong incoterms 2010 được áp dụng cho hợp đồng này, các quy tắc và định
nghĩa áp dụng cho điều khoản đó sẽ được áp dụng trong hợp đồng. Trong trường hợp các
quy tắc và định nghĩa đó có xung đột với các điều khoản của hợp đồng thì các điều khoản
của hợp đồng sẽ được ưu tiên áp dụng.

CHAPTER 2: NEGOTIATING PRICE AND MAKING PAYMENT

I. 5 steps of payment
1. Modes of payment
- Comparison: Least secure -> Most secure
+ Exporter: Open account-> Documentary Collections-> L/C-> Cash in advance
+ Importer: Cash-in-advance-> L/C->Documentary Collects-> Open account
- 4 common approaches to payment: ( đã lâu)
+ Payment on open account with no security
+ Payment on open account secured by export credit insurance
+ Payment on open account secured by a payment guarantee
+ Payment by L/C.

2. Timing
- To speed up payment, most exporters offer a discount for early payment.
Eg: 1% discount if payment is made within 30 days of the date of invoice.
=> Buyer saves on the invoice price, Seller improves his cash flow.
- Parties must negotiate a chain of date if delivery involves partial shipment,
periodic shipments, or spare parts ( phụ tùng) supply contract.
- This step determines where money must be when payment is to be completed. Several
risks might occur if the two parties don’t specify this condition:
+ It is very easy to be mistaken
+ It could cause disputes if not make clearly
+ Delay payment often triggers compensation with a lot of money
- Point at which money is deemed to be paid
When the buyer instructs the bank to pay=> When the buyer pays the money into his
bank=> When the buyer’s bank transfers funds( tiền trong tài khoản)=> When funds reach
the seller bank’s account.
- Both parties must work out the place of payment carefully because late payment is
subject to payment of interests and the cost of any delay along the payment route(lộ
trình) properly belongs to the buyer
3. Place of payment
- To avoid the danger of slow payment, exporters try to protect themselves with the
following clause:
“ Payment shall be deemed to have been made only when the contract sum is
paid into the seller’s bank account and is at the seller’s full disposal” => Thanh

13
 toán chỉ được coi là hoàn tất chỉ khi tổng số tiền hợp đồng được chuyển vào tài
khoản của người bán và thuộc toàn quyền định đoạt của người bán.
4. Delay
- Delay in payment might be excused during a grace period or when force majeure
event occurs
- In principle, any payment made after the agreed date of payment is in delay
- When delay in payment happens the exporter is usually compensated for loss due to
late payment
- The exporter may ask for a payment guarantee which make sure payment is made on
time
- The best solution to get rid of delay is to create a payment article in the sale contract
which makes late payment imposible
5. Results of delay
- A typical contract clause is as follows:
“ If payment of any sum payable is delayed, the seller shall be entitled to receive
interest on ( lợi nhuận đối với) the amount unpaid during the period of delay. The
interest shall be at an annual rate three percentage points above( cộng thêm) the
discount rate( lãi suất chiết khấu) of the central bank in the seller’s country”
=> Nếu việc thanh toán bất kỳ khoản tiền phải trả nào bị chậm, người bán được
hưởng lãi suất đối với khoản tiền chưa được trả trong thời gian chậm trễ. Lãi suất
được tính bằng tỷ lệ lãi suất chiết khấu của ngân hàng trung ương tại nước của
người bán cộng thêm 3% một năm.
II. Third party security for payment ( bảo lãnh thanh toán từ bên thứ 3)
- 2 form of third party security
+ Export credit insurance ( Bảo hiểm tín dụng xuất khẩu): allows the exporter to
recover the major part of the contract price if the buyer fails to due date => Cho phép
người bán nhận được phần lớn số tiền của hợp đồng trong trường hợp người mua
không thanh toán đúng hạn
+ The buyer may also approach a bank and ask for a bank guarantee( Bảo lãnh ngân
hàng). The bank will pay the contract price if the buyer fails to do so.=> Giúp người
bán thu được số tiền mà người mua phải trả nếu người mua không thanh toán( ngân
hàng là người trả)
● Differences
Insurance: The seller=> Insurance company => Insure its contract
+ Người bán nhờ công ty bảo hiểm, chỉ thanh toán được 1 phần hợp đồng
Guarantee: The buyer=> The banks=> Guarantee its payment obligation
+ Người mua yêu cầu ngân hàng đứng ra bảo lãnh, trả tiền nếu người mua không
trả được
+ Được thanh toán 100% giá trị hợp đồng
1. Export credit Insurance
- Offered by insurance companies
- Government export credit agencies
- The exporter has to pay insurance premium( phí bảo hiểm)

14
 - Protects the exporters from the risk of non-payment, including Commercial risks and
Political risks( người bán được bảo vệ bởi các rủi ro liên quan đến thương mại vè
chính trị)
1.1 Export credit insurance varies to ( Câu hỏi thường gặp)
- The type of goods exported(loại hàng hóa)
- The creditworthiness of the buyer( khả năng thanh toán/trả nợ của người mua)
- The political stability of the buyer’s country( sự ổn định chính trị)
- Normally between 0,5% and 1% of the invoice price
? How it work?

Explain situation
Insuranc
Exporte Send quotation e
r Compan
Accept
y
Compensate
( credit risk
happenstance)
Evaluate credit
rating
Importer

1.2. Advantages and disadvantages:

- The disadvantages:
+ Long wait to be compensated by insurance company( 6 month)
+ Compensate is unlikely to cover 100% of the original invoice price
- The advantages:
+ Protection against unfamiliar customers ( Bảo vệ trước những khách hàng lạ)
+ Protection for high-stake transactions(Hợp đồng giao dịch có rủi ro cao)
+ Give exporter a competitive edge(lợi thế cạnh tranh) when buyers are reluctant to
spend money on payment guarantee or tie up money in a L/C ( tạo ltct nếu người mua
không muốn bỏ tiền ra để bảo lãnh trong thanh toán bằng L/C)
2. Payment Guarantee

15
 Principal Beneficiary
buyer Promise seller
The Principle makes a
The
promise to pay the contract
principle
price
asks the
Guarantor y
o pa e
t
tee omise ary if e
to issue a th
n
ara tor pr nefici romis
Guarantee
u
G ran e Be its p
ua th s
he g y to reak
Guarantor T ne e b
bank mo ncipl
Pri

2.1. Four business situation risks

Risk Purpose Value of

guarantee(giá trị
bảo lãnh)

Payment Non-payment( không The bank pays if the 100% of the

guarantee( bảo thanh toán) buyer defaults( ngân contract price
lãnh thanh toán) hàng trả nếu người
mua không thanh toán)

Tender Revocation( sự rút Protect a company 1-5% and 5% of

Guarantee(Bảo lui) against the risk of a the contract price
lãnh dự thầu) project falling behind
because a tender is
withdraw

Performance Non- Pay the costs if the 5% and 10% of

guarantee( Bảo performance( không Contractor fails to the contract price
lãnh thực hiện thực hiện hợp đồng) perform
HĐ)

Prepayment Losing prepayment Ensure prepayment to 100% prepayment,

Guarantee( Bảo the Importer of an agreed decreasing as
lãnh trả trước) percentage of the deliveries are
contract amount made

- Demand guarantee ( Bảo lãnh theo yêu cầu)

No serious, objective conditions the beneficiary must meet before claiming payment
of the guarantee ( điều kiện bảo lãnh linh hoạt, người thụ hưởng chỉ cần yêu cầu là
được ngân hàng bồi thường=> dễ bị người thụ hưởng lạm dụng)
=> Subject to abuse

16
 - Conditional Guarantee (Bảo lãnh có điều kiện)
The bank pays if the claim is supported by :
+ A decision of the court of first instance( a decision by a judge)( Quyết định của tòa
sơ thẩm/Quyết định của thẩm phán)
+ An arbitral award ( a decision by a court of a arbitration) ( Phán quyết của trọng tài)
+ The approval of the Principle in writing to the claim. ( sự phê duyệt của người mua
bằng văn bản)

III. Modes of payment

1. Cash in advance/Prepayments( Trả trước)
Methods of payment in advance
- Wire Transfer ( chuyển khoản)
- Credit Cards
- Check
1.1. Overview:
- The exporter can avoid the risk of bad debt or late payment because payment is
received before the ownership is transferred.
- The least attractive option for buyer
- Foreign buyers are also concerned that the goods may not be sent if payment is made
in advance
- The exports who insist on this payment may lose to competitors who offers more
attractive payment terms
1.2. When to use cash in advance terms?
- The importer is a new customer and/or has a less-established operating history
- The importer’s creditworthiness is doubtful, unsatisfactory, or unverifiable
- The political and commercial risks of importer’s home country are very high
- The exporter’s product is unique, not available elsewhere, or in heavy demand
- The exporter operates an Internet-based business where the acceptance of credit card
payments is a must to remain competitive ( Nhà xuất khẩu hoạt động kinh doanh dựa
trên Internet nơi việc chấp nhận thanh toán bằng thẻ tín dụng là điều bắt buộc để duy
trì tính cạnh tranh)
2. Documentary Collection( Tín dụng chứng từ)
? How does a documentary Collection work?

17
 1.Agreement on terms of sale and
payment. Seller ships goods and
Seller prepares documents Buyer

2.Seller 7.Remitting bank 4.Collecting 5.Buyer accepts

presents advises seller of bank presents or pays on
documents to acceptance or documents to presentation of
remitting bank remits buyer documents to
payment collecting bank

Seller’s Bank 3.Remitting bank forwards

documents to collecting bank
Buyer’s Bank
or Remitting or Collecting
bank bank
6.Collecting bank advises
remitting bank of acceptance or
remits payment

?. How does the Documentary Collection work?

- The exporter ships the goods to the importer and receives the documents in exchange(
Người bán giao hàng hóa cho người mua và trao đổi lấy chứng từ)
- The exporter presents the documents with instructions for obtaining payment to his
bank ( người bán xuất trình chứng từ theo chỉ dẫn để lấy tiền)
- The exporter’s remitting bank sends the documents to the importer’s collecting bank(
ngân hàng nhờ thu trao chứng từ cho ngân hàng thu hộ của người bán)
- The collecting bank releases the documents to the importer on receipt of payment or
acceptance of the draft(Ngân hàng thu hộ trao chứng từ cho người mua sau khi người
mua thanh toán hoặc chấp nhận hối phiếu)
- The importer uses the documents to obtain the goods and to clear them at customs(
Người mua sử dụng chứng từ nhận hàng hóa và thông quan)
- Once the collecting bank receives payment, it forwards the proceeds to the remitting
bank ( Ngân hàng thu hộ khi nhận được tiền sẽ chuyển tiếp cho ngân hàng nhờ thu)
- The remitting bank then credits the exporter’s account
3. Open Account ( Ghi sổ)
3.1. Overview
- Goods are shipped and delivered before the payment is due, which is usually in 30 or
120 days ( hàng sẽ được giao trước khi thanh toán và được trả sau trong vào 30-120
ngày)
- Most advantageous to the importer in terms of cash flow and cost, but it is highest
risk option for an exporter ( có lợi cho người mua, nhưng rủi ro cho người bán)=> (
often between parent and subsidiary companies- hiếm khi sử dụng giữa 2 công ty
độc lập không liên quan đến nhau, chỉ sử dụng giữa công ty mẹ và công ty con)
- Often used to increase sales by assisting foreign contributors to start new or expand
existing product line ( Thường được sử dụng để tăng doanh số bán hàng bằng cách

18
 hỗ trợ các nhà phân phối nước ngoài bắt đầu mới hoặc mở rộng dòng sản phẩm hiện
có)
- Used when a seller wants to test-market a new product or try a new market in a
different country
? How to minimize the risk of an open account? ( 3 cách giảm rủi ro khi sử dụng ghi sổ)
- Verify the integrity of the buyer through a credit investigation ( điều tra khả năng
thanh toán của người bán)
- Consider the political and economic conditions of the importer’s country ( xem xét
tình hình chính trị, kinh tế)
- Third party security for payment ( bảo lãnh thanh toán)
4. Letter of Credit ( Thư tín dụng) ( quan trọng)
- One of the most secure instruments available to international traders
- A L/C is a commitment by a bank on behalf of the buyer that payment will be made to
the exporter, provided that the terms and conditions stated in the L/C have been met,
as verified through the presentation of all required documents
- A L/C protects both the buyer and the seller
4.1. Parties involved
- Applicant( người yêu cầu mở L/C): The importer , the party on whose request the
credit is issued
- Beneficiary( người thụ hưởng): The exporter, the party in whose favour( được
hưởng lợi) a credit is issued
- Issuing bank ( Ngân hàng phát hành): The importer’s bank, the bank that issues a
credit at the request of an applicant
- Advising bank ( Ngân hàng thông báo) : The bank that advises the credit at the
request of the issuing bank
E.g: Typical contract provision:
“ The Buyer, on receipt of the confirmation of order from the seller, shall at least 20
days prior to the date of delivery open a confirmed, irrevocable letter of credit. This
credit shall be subject to Uniform Customs and Practice for Documentary Credits, 1993
Revision, ICC Publication No.500. 20% of the credit shall be available against the
seller’s draft accompanied by invoice, the remaining 80% shall be available against the
seller’s draft accompanied by the shipping documents”
=> Sau khi nhận được xác nhận đặt hàng từ phía người bán, Người mua phải mở một thư tín
dụng không hủy ngang và có xác nhận ít nhất 20 ngày trước khi giao hàng. Thư tín dụng sẽ
chịu sự điều chỉnh bởi quy tắc và thực hành thống nhất tín dụng chứng từ phiên bản 1993 do
phòng thương mại quốc tế phát hành, số 500. 20% của thư tín dụng sẽ được thanh toán sau
khi người bán xuất trình hối phiếu kèm hóa đơn, 80% giá trị thư tín dụng còn lại sẽ được
thanh toán khi người bán xuất trình hối phiếu kèm chứng từ vận tải.
4.2. Four steps of issuing a L/C
- Buyer and seller sign a contract
- The buyer ask a local bank( issuing bank- ngân hàng phát hành) to open a L/C in
favour of the seller
- The issuing bank open a L/C and asks a bank in the seller’s country( Advising bank-
ngân hàng thông báo) to advise the exporter that the L/C has been opened

19
 - The advising bank advises the exporter that the L/C has been opened
4.3. The presentation of a credit letter ( 6 steps)
B1: Seller ships the goods
B2: The seller gets shipping documents ( by the carrier)
B3: The exporter presents the shipping documents to the advising bank
B4: The advising bank checks the document and( if appropriate- nếu phù hợp) pay the
exporter
B5: The advising bank notifies the issuing bank that the L/C has been presented and forwards
shipping documents
B6: The issuing bank transfers the necessary funds to the advising bank
4.4. Two important principles of L/C
- Autonomy ( Độc lập)
+ L/C is an agreement by a bank to pay money against documents
=> It is a separate agreement from the sales contract and unrelated to it
=> The bank is obliged to pay whatever disputes( tranh chấp) between the buyer and
the seller
- Strict compliance ( Tuân thủ chặt chẽ)
+ Bank will only pay if the shipping documents are exactly in the line with the buyer
instructions
+ When a bank refuses to pay under a L/C, it will cite a discrepancy( trích dẫn/chỉ ra
sự khác biệt/sai khác) that is not inline with the terms of the credit
?What can be done by the exporter when the bank refuses to pay under L/C?
- Provide the missing paperwork or correct errors ( bổ sung giấy tờ còn thiếu hoặc khắc
phục sai sót)
- Ask the buyer to instruct the bank to change the terms of the L/C( = issue an
amendment( bản sửa đổi/tu chỉnh)) ( yêu cầu người mua chỉ thị ngân hàng sửa đổi
điều khoản thư tín dụng)
- Ask the bank to process the letter of credit with the discrepancies but to pay only
when the issuing bank permits payment ( Yêu cầu ngân hàng tiến hành thanh toán bất
chấp sai khác , chỉ khi ngân hàng cho phép thanh toán)
4.5. Common Discrepancies reported by banks
- Problems with the L/C:
+ Documents required by the credit are missing
+ Documents required to be signed are not signed
+ The credit amount is exceeded ( tiền bị nhiều hơn)
+ The credit has expired
+ Shipping documents are not presented within the required time
+ Shipment was short ( giao hàng thiếu)
+ Shipment was late
- Problems with the Bill of Lading:
+ The B/L is “ unclean” - it has comments( phê chú) on it relating to damage to or other
deficiencies in the goods

20
 + A marine B/L is required, but the bill does not state that the goods were “ shipping on
board” a named vessel ( không có cụm từ “ hàng đã được chất lên tàu” trong vận
đơn)
+ The bill of lading shows shipment between ports other than those specified in the
credit (vận đơn cho thấy hàng được vận chuyển qua các cảng không phải cảng trong
vận đơn)
+ The bill of lading shows that the goods were shipped on deck ( boong tàu). This is
normally forbidden unless the credit expressly allows it
+ The bill of lading offers no evidence that freight was paid by the exporter( if this was
required)
+ There is no endorsement ( if endorsement is necessary) ( Thiếu chữ ký hậu)
- Problems with insurance:
+ The insurance document is not of the type specified in the credit( e.g: a certificate of
insurance is produced while the credit calls for a policy)
+ The insurance risks are not those specified in the credit
+ Insurance cover is expressed in a currency other than that of the credit. This is
forbidden unless the credit expressly allows it ( Hợp đồng bảo hiểm không sử dụng
tiền trùng với tiền trong L/C)
+ The sum insured is below the figure required
+ Insurance cover does not begin on or before the date of transport document.
- Inconsistencies ( không nhất quán) among the documents
+ Description of the goods on the invoice and in the credit are different
+ Weights differ between two documents
+ Marks and numbers differ between two documents
? What can be done by the exporter when the L/C is nearly its expiry date?
- Exporter must contact the buyer ask the buyer to instruct the issuing bank to extend
the date of credit
- Extra bank costs are at the exporter’s expense
=> The exporter should exercise scrupulous ( chu đáo) care in providing the documentation
required by the L/C
4.6 Type of L/C
- Revocable L/C and Irrevocable L/C
+ Revocable L/C can be amended, cancelled by the issuing bank or the buyer without
prior notice to the beneficiary
+ Irrevocable L/C can not be amended(sửa chữa) or cancelled without a agreement of
all parties
=> More popular, widely used in international trade
- Confirmed L/C and Unconfirmed L/C
+ When the buyer arranges a letter of credit they usually do so with their own bank,
known as the issuing bank. The seller will usually want a bank in their country to
check that the letter of credit valid
+ For extra security, the seller may require the L/C to be confirmed by the bank that
checks it. By confirming the L/C, the second bank agrees to guarantee payment even
if the issuing bank fails to make it.

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 => A confirmed L/C provides more security than an unconfirmed L/C
+ In case of unconfirmed L/C, the advising bank forwards the unconfirmed L/C directly
to the exporter without adding its own undertaking(bảo lãnh) to make payment or
accept responsibility for payment at a future date, but confirming authenticity(tính
xác thực)
- The At-sight L/C( thanh toán ngay)/ Settlement by sight payment
Payment effected immediately after the presentation of conforming documents
+ The seller presents the documents to the paying bank
+ The paying bank immediately pays the seller
- Settlement by deferred payment/Deferred LC ( Thanh toán trả chậm)
Payment made at some specified time after the presentation of conforming
documents
+ The seller presents the documents to the paying bank
+ The paying bank agrees to pay the seller the face value of the credit when it matures
+ If the seller needs money immediately, he can exchange the letter of credit for cash(at
a discount) with any agreeable banks. ( Nếu cần tiền ngay, người bán có thể tìm đến 1
ngân hàng khác để lấy tiền nhưng sẽ ít hơn giá trị của L/C-chiết khấu)
- Settlement by Acceptance ( Thư tín dụng chấp nhận)
When bill of exchange is used, it is usually a time draft( collected after a certain
time)=> a danger for exporter
The accepting bank will accept the bill of exchange and agree to pay it at a full face
value when it falls due
+ The seller presents to the accepting bank the documents and bill of exchange( time
draft) drawn usually by the buyer
+ The accepting bank agrees to pay the bill when it matures
+ If the seller needs money immediately, he can change the L/C for cash( at a discount)
with any agreeable bank
- Settlement by Negotiation ( Thư tín dụng chiết khấu/ chuyển nhượng)
Bill of exchange which is accepted can be negotiated( sold at a discount to any bank if
the exporter needs ready money)
=> This kind of settlement is the least satisfactory for the exporter.
4.7. L/C and its Associated Documentation
- Commercial Invoice
- Transport Document
- Insurance Document
- Other documents such as certificate origin, packing list, certificate of inspection,
specification, certificate of quality, certificate of weight, veterinary certificate( kiểm
dịch động vật), phytosanitary certificate( kiểm dịch thực vật), sanitary certificate(
giấy chứng nhận vệ sinh)
- Prompt payment of L/C depends on the presentation of correct documentation by
exporter
Unfortunately, up to 90% of first applications for payment are rejected because of
discrepancies. ( 90% những lần xuất trình đầu tiên bị ngân hàng từ chối do sai
khác trong chứng từ)

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4.8. Negotiating of term of a L/C ( Quy trình đàm phán điều khoản trong L/C)( 4 steps)
● Step 1: Agreement
Both parties agree on what documentation is required ( Thỏa thuận các loại chứng từ
cần chuẩn bị)
- The two parties may have to talk the Chambers of Commerce, their bank, and
the carrier to establish the complete list.( Tham khảo phòng thương mại, ngân
hàng, người chuyên chở để liệt kê danh sách chứng từ cần chuẩn bị)
● Step 2: Incorporation of the list into the contract ( Bổ sung danh sách chứng từ
vào hợp đồng)
The ICC publishes a form( tờ khai) for both parties to fill in and attach into their
contract ( ICC phát hành tờ khai cho 2 bên điền và đính kèm vào hợp đồng)
- The form is then passed to the bank as specification of the required L/C( đóng
vai trò như quy định về chứng từ của L/C)
● Step 3: Verification ( Xác thực)
When exporter is informed that L/C has been opened, he should check that it complies
with( phù hợp) the agreement negotiated with the buyer ( kiểm tra xem thư tín dụng
có trùng khớp với thỏa thuận không)
Exporter should be aware that bank, might list documents or make requirements that
he does not understand or agree to
● Step 4: Compliance ( Tuân thủ)
Timely payment is subject to the exact compliance by the exporter with the terms of
credit

CHAPTER 3: NEGOTIATING INSPECTION AND DEFECTS LIABILITY(KIỂM

ĐỊNH VÀ BẢO HÀNH)

I. Exporting and the Problem of Quality

?What is quality?
- Oxford English Dictionary: “ The standard of something measured against the other
things of a similar kind, the degree of excellence of something”
- Cambridge Business Dictionary: “ A measure of excellence, or state of being free
from defects, deficiencies, and significant variations, brought about by the strict and
consistent adherence to measurable and verifiable standards to achieve uniformity of
output that satisfies specific customer or user requirements”
=> Chất lượng là sự đo lượng hoàn hảo hoặc trạng thái không có các khuyết tật, sai
khác đáng kể, được đảm bảo tuân thủ nhất quán và chặt chẽ đối với các tiêu chuẩn có
thể đo lường và xác định được để đạt được sự đồng bộ về sản phẩm đầu ra và thỏa
mãn các yêu cầu của người mua hoặc người sử dụng cụ thể.
?The principle
Exporter should make sure that:
- Exported goods meet or exceed the quality specified
- Marking and packaging are correct

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 - Delivery is on time
- Agreement should contain specific qualifications
1. Specification ( Quy cách phẩm chất)
- Specification is a set of documented requirements to be satisfied by a
material, design, product, or service. A specification is often a type of
technical standard ( Các quy định được đảm bảo về mặt thiết kế, chất liệu, sản
phẩm, hoặc dịch vụ. Một dạng tiêu chuẩn kỹ thuật).A well-designed set of
specifications offers vital protection the both sides
- The importer is protected against inferior products( hàng kém chất lượng). It
can reject any equipment that fails to meet specification
- If the products are fully specified and the consignment meet the specifications,
the buyer will unable to find any excuse for rejection or for
exaggerated(phóng đại)defects liability( trách nhiệm khuyết tật)
Eg: 5% Broken White Long Grain Rice
- Moisture: Độ ẩm
- Damaged Kernels: Hạt gãy
- Yellow Kernels: Hạt vàng
- Foreign Matters: Tạp chất
- Paddy Kernels: Hạt thóc( lẫn thóc)
- Chalky Kernels: hạt trắng bạc
- Immature Kernels: Hạt non
- Red Kernels: Hạt đỏ
- Milling Degree: Mức xay xát
2. Pre-delivery inspection
?Who inspected the goods?
+ Inspection by buyer during manufacture
+ Inspection by buyer or buyer agent before delivery
+ Inspection by Inspection Service ( e.g SGS)
+ Inspection by carrier on dispatch
+ Open package inspection on arrival at destination
+ Seller’s liability for defects after sale
?Which kind of goods needs pre-delivery inspection?
- Sophisticated items ( mặt hàng tinh vi)
- Capital equipment ( máy móc/thiết bị quan trọng)
? What are the functions of independent inspection?
- Prevent exporter and importer from agreeing an unrealistically low invoice
price to avoid customs duties ( Ngăn chặn 2 bên thông đồng trốn thuế)
- Prevent shipment of patently defective goods ( ngăn chặn hàng giả, kém chất
lượng)
? What is the purpose of customs inspection?
- Customs inspection reveal(phát hiện) discrepancies in weight, size, and
description
E.g: Inspection before delivery

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“ The buyer may, at the buyer’s option, inspect the goods prior to shipment. At least fourteen
days before the actual delivery date, the seller shall give notice to the buyer, or to any agent
nominated by the buyer, that the goods are available for inspection. The seller shall permit
access to the goods for purposes of inspection at a reasonable time agreed by the parties”
=> Tùy theo sự lựa chọn/ý của người mua, người mua có thể kiểm định hàng hóa trước khi
giao hàng. Ít nhất 14 ngày trước khi giao hàng, người bán phải thông báo cho người mua
hoặc bất kỳ đại lý nào được chỉ định bởi người mua rằng hàng đã sẵn sàng để kiểm định.
Người bán sẽ cho phép tiếp cận hàng hóa để kiểm tra tại 1 địa điểm hợp lý như thỏa thuận
giữa 2 bên.
3. Principle of inspection acceptance
- The buyer can inspect goods and they can reject them if the goods do not conform
with the contract
- At this point, exact specification is of great value to the exporter if the goods
conform to specification, the buyer is obligated to accept them.
? Inspection is the right or duty?
- Inspection is subject to National Law
- In Germany, inspection is a duty
- In the USA, inspection is a right
4. What is Defects Liability Period (Warranty Period) - Giai đoạn chịu trách nhiệm
khuyết tật/bảo hành
- It is the period during which the seller/Supplier/Contractor is liable for dealing with
any defects found in the goods sold to the buyer. Defects Liability Period is also
known as a rectification period ( Giai đoạn sửa chữa khuyết tật)
- Any defects or faults which arise during this period ( for example - due to defective
materials or workmanship- có lỗi về vật liệu hoặc tay nghề gia công) must be put
right(sửa lỗi/khắc phục lỗi) by the seller at its own expense.
? How long is the defect liability period?
- Defects Liability period is negotiable
- The period is likely to be six months from the date of delivery or the date of arrival
II. Negotiating the Defects Liability Period ( 5 Step)
1. Inspection,Acceptance and Rejection (What are the goods inspected?And when
the buyer can reject them?
1.1. Inspection
- Patent defects: Khuyết tật hiện rõ
+ A fault in product that could be noticed/discovered by careful examination and is
usually noticed before a sale
- Latent defects: Khuyết tật ẩn tỳ
+ A defect a problem with a product that is hard to notice and may not be noticed before
it be bought
+ Hidden defects in material and/or workmanship of an item which may cause failure or
malfunction( sự cố), but is not discoverable through general inspection. Also called
hidden defects.
1.2. Implied warranties ( bảo hành mặc định)
An unwritten guarantee that a product or service works as expected

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 Assumptions( giả định) a buyer can make about goods even if the exporter/seller
gives no express warranty.
- Implied warranty of conformity with contract:
Goods meets specifications in the contract
? What is wrong if goods do not conform with(phù hợp với) the contract?
+ Most laws have a way of “ grading”(phân loại) non-conformity: Major discrepancies
allow the buyer the right to reject the goods and cancel the contract;minor
discrepancies do not.
- Implied Warranty of Merchantable quality( Bảo hành mặc định về phẩm chất
tiêu thụ)
+ To be “ Merchantable”, the goods must reasonably conform to an ordinary buyer’s
expectation, i.e, they are what they say they are
+ For example, a fruit that looks and smells good but has hidden defects would violate
the implied warranty of merchantability if its quality does not meet the standards for
such fruit “ as passes ordinary in the trade”
- Implied warranty of Fitness for Intended Purpose ( Bảo hành mặc định về phù
hợp với mục đích sử dụng)
+ This implied warranty means that the buyer has approached the seller with the need
for a product that performs a certain function, and by providing a product in response
to the need, the seller is implying that the product is fit for that specific use
1.3.Acceptance and Rejection
? Acceptance/ Rejection of inspection’s result / of the goods
- If the goods are up to standard, the Buyer shall accept the goods.
- Rejection can be done in whole or in part (Partial rejection). Rejection in whole means if a
proportion of the goods are defective, the Buyer has the right to reject all the shipment.
Partial rejection means the Buyer only reject the defective part of the goods and shall have
to accept the up-to-standard part.
?Notes:
- English law requires rejection of all the contract goods unless contract expressly
allows part rejection
- German law and the Vienna Sales Convention both allow rejection of only defective
or non-conforming goods
- UCC ( Uniform Commercial Code) offers buyers some choice:
+ reject the whole or
+ accept the whole or
+ accept any commercial unit or units and reject the rest
- Parties are free to decide the degree of rejection and under what condition( Các bên
có quyền xác định mức độ từ chối hàng hóa…)
- If rejection could be a problem, the parties must clarify the position of the contract(
nêu rõ quan điểm của mình trong hợp đồng)
- Buyer must notify the exporter that the goods have been rejected within a reasonable
period
1.4. The exporter’s right to cure

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 - If the exporter wants the right to cure, the contract should contain the necessary
provision
“ ...the seller may, even after the date of delivery, remedy at his own expense any
failure to perform his obligations, if he can do so without unreasonable delay and
without causing the buyer unreasonable inconvenience or uncertainty of
reimbursement by the seller of expenses advanced by the buyer” - Vienna Sales
Convention
=> Người bán có thể khắc phục khuyết bất kỳ hậu quả nào của việc không thực hiện
nghĩa vụ, kể cả sau ngày giao hàng, và chịu chi phí nếu người bán có thể làm vậy
ngay lập tức và không gây cho người mua những phiền toán không đáng có hoặc
không chắc chắn trong việc hoàn trả những chi phí mà người mua đã ứng trước”
2. Guarantee or warranty ( hay thi)
- A guarantee is a promise about somebody else’s performance
- A warranty is a promise about your own

Warranty
Seller The seller promises Buyer
to make goods defects

Promise
Principal Beneficiary
The principal makes a
Seller or buyer promise Buyer or seller

The principal asks the

Guarantee
Guarantee to issue a The Guarantor promises to pay
Guarantee money to the beneficiary if the
principal breaks its promise

Guarantee
Bank or insurance
company
3.What is defect?
- Types of defect:
+ Defective Workmanship: A product with defective workmanship is incorrectly built
+ Defective Material: Defective materials are materials or parts of a product that are
inferior or somehow incorrect
+ Fair Wear and Tear: The result of normal use. E.g: The plastic handle on an electric
drill is scratched after six months use
+ Misuse: seriously incorrect handling by the buyer
E.g: The use of acetone to clean plastic components is misuse
+ Faults not present on delivery
“ In the event of inappropriate or improper use, incorrect storage, erroneous
assembly or start up by the buyer or third parties, natural wear and tear,
erroneous or negligent handling, improper maintenance, use of inappropriate

27
 operating resources, defective construction work, or chemical, or electrical
influences for which Manufacturer is not responsible, the buyer is not entitled to
claim against Manufacturer under Warranty”
=> “ Người mua không có quyền đòi nhà sản xuất bảo hành nếu người mua hoặc bên
thứ 3 sử dụng hàng hóa không đúng cách, bảo quản không đúng cách, mắc lỗi bị hao
mòn thông thường, vận hành không đúng cách hoặc bất cẩn, bảo trì không đúng
cách, sử dụng nguyên vật liệu vận hành không phù hợp, mắc lỗi thực hành công trình,
sử dụng hóa chất hoặc dòng điện không phù hợp”
E.g 2: Disclaimer of Warranty( Khước từ bảo hành)
A. The software provided under this agreement is furnished “ as is” and without
support of any kind whatsoever. ( Phần mềm được cung ứng theo hợp đồng
này sẽ được cài đặt như hiện trạng và không được hưởng bất cứ sự hỗ trợ nào
khác)
B. The supplier disclaims all warranties with regard to any software licensed to
the purchaser under this agreement, including all implied warranties of
merchantability and fitness for a particular purpose. In no event shall the
supplier be liable for any special, indirect or consequential damages
whatsoever resulting from loss of use, data or profits, whether in an action,
arising out or in connection with use or performance of any software licensed
under this agreement ( Nhà sx từ chối tất cả các bảo hành liên quan đến phần
mềm cấp phép cho người mua theo hợp đồng, bao gồm bảo hành mặc định
khả năng tiêu thụ và phù hợp với mục đích cụ thể. Nhà sx không chịu trách
nhiệm bồi thường trực tiếp, gián tiếp hay đặc biệt liên quan tới việc không sử
dụng được, mất dữ liệu,mất lợi nhuận cho dù có liên quan đến hợp đồng hoặc
do các hành động sai sót hoặc bất cẩn phát sinh hoặc có liên quan đến việc sử
dụng hoặc vận hành phần mềm được cấp phép theo hợp đồng này)
C. The supplier’s prices are based in material part upon this limitation of the
supplier’s liability ( Giá của nhà sản xuất đưa ra trong hợp đồng đã tính tới
giới hạn trách nhiệm của nsx)
4. Timing of the defects liability period
The principle: The length of the defects liability period must be agreed by the parties
including:
- The starting point of the period
- The time allowed to the buyer to notify the exporter of a defect
- The time the exporter has to correct the defect
- The period during which the buyer can begin a legal action ( Thời gian nào người mua
có quyền khởi kiện)
4 period:
- The defect liability period ( Giai đoạn trách nhiệm khuyết tật)
- The notification period ( Giai đoạn thông báo)
- The rectification period (Giai đoạn khắc phục)
- The legal action period ( Giai đoạn khiếu kiện)
4.1. The defect liability period

28
 Performance of the
contract

Completion
Arrival Final
Delivery of
and Acceptance
( E.g. FOB) performance
Inspection by the buyer
tests

Seller prefers Buyer prefers

Starting point of the defects liability

period
=> Giai đoạn bảo hành có thể được bắt đầu từ: ngày hàng được giao, ngày hàng đến và được
kiểm định, tính từ ngày hoàn tất kiểm định, hoặc từ ngày người mua chấp nhận hàng hóa
=> Người bán mong giai đoạn bảo hành càng sớm càng tốt, người mua mong giai đoạn bảo
hành càng muộn càng tốt
- Originals defects liability period ( 2 years): Correct operation ( 9 months)->
Interruption ( 6 months) -> Correct operation ( 9 months) + Extension of defects
liability ( 6 months) ( Trong giai đoạn bảo hành sẽ có lúc hàng không sử dụng được,
thông thường sẽ được cộng 1 khoảng thời gian để người bán khắc phục)
+ The defects liability period shall be extended by a period equal to the period during
which the goods cannot be used by reason of any defect, but not so as to extend the
defect liability period for more than twenty-four months from the date of first delivery
of the goods repaired or replaced under this provision.
- The “ Eternals warranty”: An endless renewed liability for defects. The exporter
can not break the chains of warranty and is involved in endless responsibility for the
goods
+ The problems can be avoided with a cut-off clause such as: the total warranty period
shall in no case exceed three years : “ Any parts replaced under this warranty shall be
subject to the provisions of this clause for a full further period of warranty period
shall be in no case exceed three years”
4.2. The rectification period
- The seller shall make good the defect or damage as soon as practicable and at his own
cost.
4.3. The legal action period
- Tùy theo luật quốc gia
+ German Civil Law: Giai đoạn khiếu kiện có thể bắt đầu trùng với giai đoạn bảo hành
=> Thiệt hại cho người tiêu dùng
+ Some continental Law( luật lục địa): nên bắt đầu từ lúc hàng hóa có lỗi.
5. Corrective action
- Repair
- Allow the buyer to repair at the exporter’s cost
- Replace
- Reduce the price

29
 - Return the goods and refund the price
5.1. Repair
“ When a manufacturer sells in his own country, the option to repair a defective item is often
cheapest. Some products can not be repaired - photograph records, for example. But for
complex items, a tractor for instance, repair is the obvious choice. For the exporter, repair
can be costly- often a mechanic must travel to the buyer’s country with the tools and spare
parts. The exporter must clearly take such costs into account when setting his export price”
=> Không phải mặt hàng nào cũng có thể sửa được. Đối với người xuất khẩu thì chi phí sửa
có thể rất đắt đỏ vì ở xa, thường thì các kỹ thuật viên phải đến nước người mua và cầm theo
các dụng cụ để sửa chữa, chi phí sẽ tăng vọt lên và người bán sẽ phải tính đến chi phí này khi
tính đến giá thành của sản phẩm.
5.2. Allow the buyer to repair the goods at the exporter’s cost
- To save the cost of sending a mechanic to repair a machine aboard, some contracts
allow the buyer to repair the equipment at the exporter’s cost. The danger for the
exporter is obvious: an expensive repair bill and no way to be sure the repair is
properly carried out.
- Further, the “ repair” may cause new problems which the exporter must fix under the
warranty. Most exporters try to resist pressure from the buyer to include a “ repair by
the buyer provision”. If it is included, the exporter protects himself by allowing “
repair by the buyer” only in exceptional cases and then only with the exporter’s
express approval.
5.3. Replace ( Part or whole item)
- Replacing a defective product has one important advantage: it helps to keep the
goodwill of the customer.
- Replacement is, however, expensive for the exporter, especially as it is often
uneconomic to ask for return of the defective item. With heavy equipment, of course,
it is unusual to replace the whole product - usually just the defective part ( a
generator, a filter, or whatever) is replaced.
- Unfortunately, replacing a part for a foreign buyer causes similar problems to repair:
the replacement part must pass two sets of customs; further, air mail or air freight is
normally required. If replacement parts are to be installed, a competent technician
must be at hand. As always, the costs are much higher for the exporter than for local
traders.
5.4. Reduce the price
- If the goods are paid on delivery by L/C, such a reduction must take the form of a
direct payment by the exporter to the buyer. This can be difficult in country where
foreign exchange is scare
- If payment is on open account, and the invoice has not yet been settled, the payment
due is simply reduced.
- Some contracts, especially contracts for complicated equipment, include provision for
an “ retainer” . A retainer is a part of the payment due for the goods ( normally 5%)
kept back ( or retained) by the buyer till the end of the defects liability period. This
5% is used to negotiate price reductions ( or to settle defects liability claims) => Một

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 số hợp đồng cho phép người mua giữ lại 5% giá trị hợp đồng đến khi hết giai đoạn
bảo hành, và trừ luôn 5% này coi như giảm giá.
5.5. Return the goods and refund the price
- From the exporter’s viewpoint, the last option is least desirable- take back the
money. This amounts, in effect, to cancellation of the contract.
- Often defective goods are not worth the cost of returning shipment to the exporter’s
country. That means, the deal is a total loss for the exporter. If the buyer insists on
including a “ return and refund” clause in the contract, the exporter must protect
himself by allowing this only in exceptional cases and with his express agreement
5.6. Liquidated damages ( Tiền bồi thường định trước)
- Damages whose amount the parties designate during the formation of the contract for
the injured party to collect as compensation upon a specific breach( e.g., late
performance)
- When damages are not predetermined/assessed in advance, then the amount
recoverable is said to be “ at large” ( to be agreed or determined by a court or tribunal
in the event of breach)
Tổng kết chương 3: Học 5 biện pháp khắc phục, biện pháp nào người bán không mong
muốn nhất

CHAPTER 4: THE LEGAL FRAMEWORK

Six steps of legal framework:
A contract is not only a lists of ideas agreed by the exporter and the buyer but also an
enforceable legal instrument:
- Step1: The applicable law
- Step2: Contract or no Contract?
- Step3: Entire agreement
- Step4: The parties
- Step5: Status of the contract
- Step6: Settlement of dispute
I. Step1- The Applicable law
- Most laws belong to one of two families ( 2 trường phái luật): Anglo-American or
Continental( luật lục địa)
+ Anglo-American is based on case-law (English Common Law- thông luật)
+ Continental Law is based on legal code (Roman/ Civil Law- luật La Mã/luật
dân sự)
- Contract -> Applicable law -> Public Law
Continental Law = Civil Law ( luật dân sự)
- Civil Law is derived from a code (có nguồn gốc từ bộ luật )developed by Roman
Emperor Justinian 1500 years ago
- Many differents laws in the Empire and was compiled and made into a Code
=> Known as Roman Law or Civil Law
- The Code states what is legal and what is not
- China, Japan, Germany, France and Spain are countries that introduce Continental
Law

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1. 1 Goal
- Consistency and uniformity of enforcement ( Tính thống nhất và nhất quán của việc
thực thi)
1.2 Predictability and consistency of court decision
- Decisions in almost all cases are predictable with some accuracy(Có thể dự đoán được
với mức độ chính xác nhất định)
1.3 Length and detail of contract
- Contracts can be short and lacking in detail(Hợp đồng có thể ngắn và không chi tiết)
1.4 International acceptance
- Continental laws do not have the prestige ( không có uy tín)of Anglo- American laws
in international practice. They tend to focus on national rather than international
issues.
2. Anglo- American law
- The goal of this law was to achieve justice in the individual case by taking all
circumstances into account (Đạt được công lý trong từng trường hợp cụ thể, tính đến
tất cả các trường hợp)
- The King tried to decide each case inline with earlier decisions, or precedents ( phù
hợp với các quyết định hoặc tiền lệ trước đó)
=> Anglo- American law is known as Case Law or Common Law
- Case-law systems avoid strict codification(mã hóa chặt chẽ) because rigid laws(luật
cứng nhắc) limit the judges to find a just solution in the individual case
- Anglo- American legal thinking influences international contract practice( Tư duy
pháp lý Anh - Mỹ ảnh hưởng đến hợp đồng quốc tế)
- Popular in the USA, England and ex-colonies of England
2.1 Goal
- Justice in the individual case
2.2. Predictability and consistency of courts decisions:
- Unless matters are carefully regulated in the contract, the decision of the judge is not
fully predictable. Different judges may give widely different judgments.
2.3 Length and detail of contract
- To be clear, contracts must regulate many issues, so they tend to be long and detail
International acceptance
- English and American law have been revised(được sửa đổi)over the centuries to cope
with( đối phó với) issues of international trade. The principles are widely understood
and respected.
3. Vienna Sales Convention( Công ước Viên)
- The UN promulgated UN Conventions on Contracts for the international Sales of
Goods in 1980
- Approved by USA, China, Germany and other important trading nations
- If there is any contradiction between the national law and the Convention, then the
Convention rules.
II. Step 2- Contract or no contract
1. The principle: A contract is enforceable only:

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 - If the parties achieve a “ meeting of minds” through a process of offer and
acceptance( Các bên đạt được đồng thuận về ý chí)
- If both sides are capable of entering a contract ( Cả 2 bên có năng lực ký kết hợp
đồng)
- If the purpose of the contract is legal
- Anglo-American Law requires that the contract must give both sides the rights and
duties => one-sided contract is no contract ( Hợp đồng đối ứng về quyền và nghĩa vụ)
2. Meeting of minds (Thống nhất ý chí)
- Duress( Ép buộc)
+ Contract must established under no pressure
+ Unconscionable agreement is no contract
- Mistake and Fraud:
+ A mistake about the goods or deliberate fraud can mean that there was no meeting of
minds
3. The rules of offer and acceptance
- Inquiry or request for tender → offer
+ Revocation → Offer dies
+ No revocation → Counter Offer ( Hoàn giá) → Original offer dies
↘ No counter offer → Acceptance → Contract
↘ No Acceptance → Offer dies
4. The power to sign a contract
- Some people are unable to sign a contract including children, the feeble
minded(người thiểu năng) and the drunks. Why?
- => They are lack of capacity ( Không có năng lực)
- Some companies lack power to enter contracts
=> Ultra Vires Rule ( Quy định về ngoài thẩm quyền) ( Ultra Vires = Beyond power)
+ The company’s action in entering into a contract were Ultra vires, and therefore the
contract was void ( Các công ty mà không có chức năng thực hiện hợp đồng theo
đăng ký kinh doanh => Hợp đồng vô hiệu)
+ In countries that enforce Ultra Vires Rules, The exporters should check carefully the
powers of the buyer's company by consulting the Commercial Attache or the
Chamber of Commerce ( tham vấn tùy viên thương mại hoặc phòng thương mại)
5. Legality of purpose ( Tính hợp pháp của hợp đồng)
- If the the purpose or effect of an agreement is illegal, the agreement is unenforceable
E.g. The trade in elephant ivory is illegal
=> The contract is unenforceable
- What might happen if a part of an agreement is illegal?
Most international contracts includes a Partial Invalidity provision ( điều khoản vô
hiệu một phần), saying that the invalidity of one part of the contract does not
invalidate the rest( Nếu một phần của hợp đồng bị vô hiệu không ảnh hưởng đến phần
còn lại)
- Partial Invalidity: “ If any provision or provisions of this Contract are invalid or
become invalid, then this shall have no effect on the remaining provisions. Further,

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 the parties agree to replace any invalid provision with a new, valid provision having,
as far as possible, the same intent as the provision replaced”
=> Nếu bất cứ điều khoản nào trong hợp đồng này vô hiệu hoặc bị tuyên bố vô hiệu, điều này
không ảnh hưởng gì đến các điều khoản còn lại. Hơn nữa, các bên đồng ý thay thế bất cứ
điều khoản vô hiệu nào bằng một điều khoản mới có hiệu lực càng có cùng nội dung với điều
khoản cũ càng tốt.
6. The exchange of Consideration ( Sự đối ứng)
6.1. Under Anglo-American systems, Agreements fall into types:
- Agreements in which one side has only rights and the other side has only the duty
=> One- sided agreement is not a contract, which is not governed by Contract Law
- Agreements in which both sides have rights and duties
=> Two-sided agreement is a contract
6.2. Continental Legal Systems do not observe this distinction ( Luật Châu Âu không quan
tâm đến sự phân biệt này)
=> An one-sided contract is enforceable in just the same way as a two-sided contract
III. Step 3 - The contract as the entire agreement ( Tính toàn vẹn của hợp đồng)
1. The principle:
- Most international contract includes an “ entire agreement provision”
- The background of the contract must be established ( nêu cơ sở của hợp đồng)
- Important letters and memoranda( bản ghi nhớ) must be considered as contract
documents
- Definition is an important part of contract drafting
2. The Entire Agreement Clause:
- Anglo- American laws states that the final written version of the contract replaces
previous agreement between the parties:
“ This contract constitutes (cấu thành) the entire agreement and understanding
between the parties: There are no agreements, understandings, conditions,
reservations or representations, oral or written, that are not embodied (đưa vào) in
this contract or have not been superseded by this contract”
=> Hợp đồng này là toàn bộ thỏa thuận và giao ước giữa các bên. Tất cả thỏa thuận,
giao ước, điều kiện, bảo lưu và đại diện, bằng văn bản hay lời nói sẽ được đưa vào
hoặc được thay thế bởi hợp đồng này.
3. Whereas Recital
- When the contract is the “ entire agreement”, the lawyers include the background of
the contract( cơ sở của hợp đồng) into it through the whereas-recital
- The recital allows the court to discover the meaning of the contract through an
understanding of the expectations of the parties
- A recital or preamble is not essential in a continental law
Ex: “ Whereas the parties have successfully cooperated in the number of projects in the
Republic of Verbena during the last ten years; => Xét thấy các bên đã hợp tác thành công
trong một số dự án ở Cộng hòa Verbena trong 10 năm trở lại đây
Whereas the supplier has wide experience in the supply of electronic products for use in
tropical conditions; => Xét thấy nhà cung cấp có kinh nghiệm trong việc cung cấp các sản
phẩm điện tử sử dụng trong điều kiện khí hậu nhiệt đới

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Whereas the parties concluded on 28 May 1995 a Memorandum of Understanding and
intend to develop products for Verbena;=> Xét thấy các bên đã ký kết Biên bản ghi nhớ vào
ngày 28 tháng 5 năm 1995 và dự định phát triển các sản phẩm cho Verbena
Whereas the supplier has developed and patented an electronic relay under the registered
trade-name “ Hair Trigger”=> Xét thấy bên cung cấp đã phát triển và có bằng sáng chế rơ
le điện tử theo tên đăng ký là..
Whereas both parties are interested in introducing this new technology into East Asia
Region;=> Xét thấy các bên quan tâm đến việc giới thiệu sản phẩm này vào thị trường Đông
Nam Á.
Whereas the purchaser wishes to incorporate the latest relay- manufacturing technology in
its own products=> Xét thấy người mua có nguyện vọng tích hợp công nghệ rơ le này vào
trong sản phẩm của mình
And Whereas the government of the Republic Verbena actively supports the introduction of
pioneer technology => Xét thấy chính phủ Verbena tích cực ủng hộ việc giới thiệu công nghệ
tiên phong này
It is hereby agreed that… => Thông qua hợp đồng này, chúng tôi thỏa thuận.
4. Contract documents
In international practice, the parties often wish to “ incorporate” outside material ( tài liệu)
into the contract: letters, general conditions, the Incoterms,etc. To achieve this, the contract
lists such items as Contract Documents( Tài liệu hợp đồng)
EX:
- Contract documents: “ All contract documents and the clause of this contract shall
be read, if possible, so as to be consistent. In the event of conflict, the order of
precedence for the provisions and documents which constitute this agreement is as
follows:
+ Any alterations typed on the face of the printed purchase agreement
+ The printed text of the purchase agreement itself
+ Specifications
+ Statement of Work
+ Manufacturing drawings
+ The buyer’s special conditions of purchase
+ The buyer’s general conditions of purchase”
=> Tất cả các tài liệu và điều khoản trong hợp đồng sẽ được diễn giải, nếu có thể, một cách
nhất quán. Trong trường hợp có xung đột, thứ tự ưu tiên của các tài liệu và điều khoản cấu
thành thành hợp đồng như sau:
+ Bất cứ thay đổi nào được đánh trên hợp đồng
+ Bản in ra của hợp đồng
+ Quy cách phẩm chất
+ Bản kê công việc
+ Bản vẽ kỹ thuật
+ ….
- Definition:

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“ In this contract the words below have the meaning ascribed to ( gán cho) them unless the
context otherwise clearly dictates: (Trong bản hợp đồng này, các từ sau đây được hiểu theo
nghĩa sau, trừ khi văn cảnh ghi rõ nghĩa khác)
+ Unless expressly modified( sửa đổi) by the parties, “ FOB,CIF” and other trade terms
have the meanings and obligations ascribed to them in Incoterms 1990, Publication
460 of the International Chamber of Commerce , Paris
+ “ Contract” means this contract, its preamble and appendices ( phần mở đầu và
phần phụ lục), as well as all documents expressly listed as Contract documents or
otherwise expressly mentioned in this contract.
IV. Step 4 - Provisions Concerning the parties ( Các điều khoản liên quan đến các bên)
1. The principle
- The exporter must know the exact name and address of the buyer - otherwise it may
be impossible to resolve any payment problems that arise
- It is also important that the identity of the buyer does not change during the course of
contract performance
Ex: The names in contract : “ The Amaryllis Docklands and Harbor Supply Company Ltd.,
a company organized and existing under the laws ( hoạt động theo Luật) of the Republic of
Verbena, having offices in Port Mary, Verbena, hereinafter( sau đây gọi là) called “
AMARYLLIS.
The Amaryllis Docklands and Harbor Supply Company Ltd., a company organized and
existing under the laws of the Republic of Verbena, having offices in Port Mary, Verbena,
hereinafter called”
2. Notices
- The official mailing address of the parties are not usually given in the opening section
of a contract but in a separate provision call “ notices”
- The Notices provision usually stipulates( quy định) how notices must be delivered,
for example by registered email
“ Notices served by one party to the other under the contract are valid only if sent by
registered mail and signed( thư đảm bảo và có chữ ký).
Such notices are to be sent to the following addresses:...”
3. Assignment of rights and delegation of duties ( Uỷ nhiệm quyền và chuyển giao
nghĩa vụ)
- Under a contract, each side has rights and duties. A right has some commercial value -
so it is possible to sell it, trade it, or give it away
- Clause sample: “ Assignment of rights, delegation of duties. The right under this
contract may not be assigned nor the duties delegated by either party without the
prior written consent of the other party”
V. Step 5 - Provisions Concerning the Status of the Contract
1. The principle
- The lift of a contract normally ends the last duty under the contract is performed
- One side may have the right to end it
- One party may breach the contract allowing the other to cancel ( một bên được hủy
hợp đồng nếu bên kia vi phạm)

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 - The parties may simply agree to end their contractual relationship; or the whole
purpose of the contract may simply disappear
2. The lifetime of a Contract
2.1 Discharge by Performance( thực hiện xomg/giải kết hợp đồng) : Both parties perform
their duties exactly according to the contract, the contractual relationship ends when the last
duty is fully performed
2.2 Termination:
+ Termination occurs when either parties pursuant to the power created by agreement or
law puts an end to the contract otherwise than for its breach
+ There are two kinds of termination: Termination for Convenience and Termination
for Default
● Termination for convenience( Chấm dứt hợp đồng tùy ý) occurs when one party
( usually the buyer) simply decides to drop the contract. No reason is required. The
buyer must pay for all work performed or partly performed
● Termination for default ( Chấm dứt hợp đồng khi có vi phạm) occurs when the
contract names certain defaults which allow one side ( usually the buyer ) to
terminate. The seller shall be entitled to receive full payment for all goods and
services delivered by the seller at the date of termination
Ex:
“ Termination for convenience: The delivery of goods under this contract may be terminated
by the buyer in accordance with this clause in whole, or in part, whenever the buyer shall
determine that such termination is in his best interest( vì lợi ích của ai đó). Any such
termination shall be effected by delivery to the seller of a Notice of termination specifying the
extent to which supply of goods under the contract is terminated, and the date upon which
such termination becomes effective.”
=>Theo như điều khoản này, việc giao hàng hóa theo hợp đồng này có thể được chấm dứt
toàn bộ hoặc từng phần bởi người mua,bất cứ khi nào người mua cảm thấy việc chấm dứt hợp
đồng mang lại lợi ích tốt nhất cho mình. Mọi sự chấm dứt nào sẽ có hiệu lực sau khi người
bán nhận được thông báo về việc chấm dứt, nêu rõ lượng hàng theo hợp đồng bị dừng và
ngày chấm dứt hợp đồng có hiệu lực…”
“ Termination for default: The buyer may by written notice of default to the seller, terminate
the whole or any part of this contract in any one of of the following circumstances:
- If the seller fails to make the delivery of the goods within the time specified herein
- If the seller fails to perform any of the other provisions of this contract or so fails to
make progress as to endanger performance of this contract in accordance with its
terms, and in either of these two circumstances does not cure such failure within a
period of 10 days.”
=> Người mua có thể chấm dứt toàn bộ hoặc 1 phần hợp đồng sau khi gửi thông báo bằng
văn bản về vi phạm cho người bán, nếu một trong những trường hợp sau xảy ra:
- Người bán không giao hàng trong khoảng thời gian quy định của hợp đồng
- Người bán không thực hiện bất cứ điều khoản nào của hợp đồng…..
2.3. Cancellation ( Hủy hợp đồng)
- Cancellation occurs when either party puts an end to the contracts for breach

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 - Not any breach allows cancellation by the other party. Only fundamental breach( vi
phạm cơ bản) leads to the contract cancellation.
2.4. Rescission ( Từ bỏ hợp đồng)
- Recession occurs when two parties agree to end a contract. In legal theory, they enter
a new contract to annul (hủy bỏ) the old contract.
=> Quy trình tình trạng của hợp đồng:
A contract ends its life with Discharge
↓
Were all duties performed? →Yes: Performance
↓No
Did the contract allow one side to end it? →Yes: Termination: Was a defaults by one side
↓No Termination for default :Yes← necessary?
↓No
Termination for convenience
Did one side breach the contract? →Yes: Cancellation
↓No
Did the parties agree to end the contract? →Yes: Rescission
=> Chấm dứt hợp đồng và hủy hợp đồng là quyết định đơn phương, rút khỏi hợp đồng là
quyết định song phương.
3. Language of the contract
- When the parties agree on the language of the contract, making it clear that translation
do not have the same authority(không có thẩm quyền như bản gốc) as the original
version on the contract -language and no translation is ever perfect.
“ This agreement is written in English and in Swahili. In the event of a discrepancy, the
English -language version shall prevail”
“ This agreement is made in both Swahili and English. The Swahili and English version have
equal status”( giá trị pháp lý như nhau)
“ This contract and the contract documents are written in English. Any translation into
another language is for information only and has no legal status.
Correspondence between the parties shall be conducted exclusively in English.(Tất cả các
thư tín giữa các bên sẽ được thực hiện bằng tiếng Anh)
The language of all designs, drawings, plans, specifications, and all other documentation
provided by the seller under this contract shall be in English; however, the training materials
and maintenance manuals specified in Article 11 shall be supplied in both an English-
language version and an Arabic version. In the event of a discrepancy between the two
versions, the English-language version shall prevail.” ( Ngôn ngữ của các bản thiết kế, bản
vẽ, bản kế hoạch, quy cách phẩm chất và tất cả các tài liệu người bán cung cấp theo hợp
đồng là tiếng Anh; tuy nhiên, các tài liệu đào tạo, cách sách hướng dẫn về bảo trì nêu
trong quy định của điều 11 sẽ được soạn thảo bằng tiếng anh và tiếng ả rập. Trong trường
hợp có sai khác giữa 2 bản thì bản tiếng anh sẽ được ưu tiên áp dụng.)
V. Step 6 - Settlement of dispute
1. The principle

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 - Most negotiators prefer to take disputes to arbitration before specialist court rather
than litigation before a judge ( Các bên đều muốn giải quyết tranh chấp thông qua tố
tụng trọng tài hơn là tranh tụng trước tòa)
- To avoid lengthy and expensive proceedings, a well drafted contract specifies an
acceptable arbitration procedure ( Một đồng được soạn thảo kỹ lưỡng chỉ rõ thủ tục
trọng tài )
2. Litigation( Kiện tụng)
- Litigation before the court is internationally the least attractive: it is public, expensive
and time- consuming. The results are often legalistic rather than business-like ( kết
quả thường mang tính pháp lý hơn là kinh doanh)
=> Many contracts foresee a two-step process for dispute resolution:
- Amicable settlement( Hòa giải)
- Arbitration ( Trọng tài)
2.1 Amicable Settlement and Conciliation
An amicable settlement calls for the friendly settlement of disagreements before they turn
into disputes.
“ The buyer and the seller shall make every effort(nỗ lực hết sức đề hòa giải) to resolve
amicably by direct, informal, negotiation of any disagreement or dispute arising between
them under or in connection with the contract”
- Typical procedure for amicable settlement as follows:
+ The parties shall agree a date and place for an amicable settlement meeting
+ Attending the meeting shall be one executive representing each party and one lawyer
representing each party
+ The lawyer shall not allowed to speak at the meeting
+ The meeting shall take place in three sessions( 3 phiên). In the first session, each
party states its position( nêu quan điểm) on the subject of the disagreement. In the
second session the parties shall suggest ways of resolving the disagreement. In the
third session the parties shall attempt to resolve (cố gắng giải quyết)this disagreement
- Conciliator:( Người hòa giải)
+ An alternative non-binding procedure involves using an outsider, a conciliator trusted
by both sides
+ The conciliator suggests a fair solution but has no power to enforce his solution or to
bind the parties in any way.
2.2 Arbitration( tố tụng trọng tài)
- If two sides cannot reach agreement between themselves, the resolution of their
dispute requires a forum that is a court of law unless the parties specify otherwise
- In practice, most contracts do specify otherwise, calling for arbitration.
- The two main advantages of arbitration are:
+ Its tendency to be quicker than litigation
+ The foreseeability of the costs.

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