1. What are 5 steps in negotiating delivery?

- Timing (Date of delivery, delay, results of delay)

- Location (Place of delivery and alternatives)

- Transport (modes of transport to be used)

- Risk, title and insurance (transfer of risk, ownership and insurance? )

- Terms of trade (Incoterms to be used)

2. When must delivery take place?

Time of delivery is decided according to the delivery terms which might be

- The date of dispatch from the factory

- The date of loading onto a ship

- The date when the goods should arrive in destination

3. What is the place of delivery?

Place of delivery is the point at which the exporter passes responsibility for the Goods to
the Buyer. Delivery can take place at a number of places between manufacturer’s factory
and the Buyer’s warehouse

4. Why is location important?

Because the date of payment depends on place of delivery.

5. Why is transportation important?

Because It specifies cost and appropriate type of transportation is important for

transporting goods.

6. What are modes of transportation?

Sea transport, air transport and Inland transport (by road, by rail, by barge, by mail or by
mixture).

7. Where is the risk often passed from the exporter to the importer?

At the point of delivery

 8. Where does transfer of ownership take place?

At any point between the signature of the contract an the final payment for the goods.

9. How many kinds of delay in delivery? - Excusable delay, Non- excusable delay

10. What is excused delay? - It is caused by an Force Majeure event.

11. What events does delivery date trigger?

- Exporter fulfills duties under the contract

- Payment may become due
- Risk and title pass to the buyer

12. How to fix delivery date?

To use a straightforward calendar date or interval times

13. When does the contract come into force?

The date of contract come into force is not usually a calendar date but the date on which
the last precondition is met Precondition for the sale include:

- Receipt of import and/or export approval

- Receipt of foreign exchance approval from a central bank

- Issuance of a letter of credit or bank guarantee

- Making of a down-payment by the buyer

- Issuance of an insurance policy

- Issuance of a Cetificate of Origin

- Delivery by buyer of plans, drawings or other documentation

14. When is a contract binding? - After the signature date.

15. When is a contract binding and effective? - After the date of coming into force .

16. In what kind of contract is a cut-off date set?

If the contract has not come into force within a certain time.

17. How does the date of coming into force affect the delivery date?
The delivery date is normally fixed for a certain days after the date of coming into force.

18. What is the grace period?

It is the period between the delivery date and the day of the begining penalty period.

19. What is the grace period used for? - It use for faciliating early delivery.

20. What can parties do if the force majuere events continue too long?

The duties under the contract can be suspended or terminated altogether.

21. What are the 3 outcomes of FM?

- Resumption of delivery
- Termination of contract
- Unclear and dangerous situation

22. What are the two remedies given to the Buyer for any unexcused delay?

- Requiring the exporter to make delivery as agreed

- Fully and adequately compensation.

23. Which law prefers to award damages? - It is subject to some national law.

24. Which law enforces performance? - Common law.

25. What questions do the courts ask in setting a figure for compensatory
damages for late delivery?

- Did the loss provably follow from the breach?

- Was the loss reasonably close to the breach in the chain of events?
- Did the buyer take reasonable steps to keep the loss as small as possible.

26. What are liquidated damages?

A fair figure, a lump sum to be paid per day ( week or month) of late delivery, agree by
both parties.

27. What are penalties? - Damages are paid to compensate one party for a loss

28. Explain the differences between liquidated damages and penalties

The difference is that the motive behind them. Liquidated damages is a fair pre estimate
and a penalties is an attempt to terrorize.
 29. What is quasi-indemnity?

It is a compensation figure so low that it relieves the the seller's responsiblity for late
delivery.

30. What notation must a Marine Bill of Lading bear? - Loaded on board.

31. How can a marine bill of lading be made into a negotiable document?

Typing the word "Order" in the consignee box.

32. What are clean shipping documents?

Shipping doccuments are free of notes about defects.

33. What aspects of the goods does the carrier ( the transportation company)
inspect? - The packaging only

34. What defects does the carrier note on the face of the bill of lading or other
shipping documents? - Packaging, weight or general appearance of the goods.

35. Which player (exporter or buyer) is responsible for arranging insurance

cover?

There are two schools of thought.

- The first sees the point of delivery as decisive, up to delivery the exporter insures, after
the delivery the buyer.
- The second approach lies behind C term, the exporter arrange insurance.

36. Name types of insurance policy - Floating Policy and Open cover.

37. What does a Marine Insurance policy cover?

It contains clause A, B and C. Clause A covers anything not excluded; clause B and C
exclude anything not expressly covered.

38. What are 3 variables taken into account when setting up the 13 terms?
Point of delivery, transport and Costs after delivery.

39. Identify 4 categories in which the 13 terms are grouped

40. What are main functions of ocean BL? - It uses for payment by an LC.
41. What are requirement of BL when payment is made by LC? - Clean BL.