TABLE OF CONTENTS

1. Welcoming ....................................................................................................................6
2. Module Objective ......................................................................................................... 6
3. Module Outcomes ........................................................................................................ 6
4. Learning Units .............................................................................................................. 7
5. Prerequisites ................................................................................................................ 7
6. Credits and Notional Learning Hours ......................................................................... 7
7. Study Material .............................................................................................................. 7
8. Assessment .................................................................................................................. 8
8.1. Assessment Breakdown ....................................................................................... 8
8.2. Assessment Calender .......................................................................................... 8
8.3. Calculation of the Final Mark ............................................................................... 8
8.4. Passing the Module .............................................................................................. 8
9. Updating of Module Information and Resources ....................................................... 9
10. Student Graduate Attributes ....................................................................................... 9
1. Learning Unit 1 .............................................................................................................. 14
1.1. Unit Overview ...................................................................................................... 14
1.2. Learning Outcomes ............................................................................................ 14
1.3. Unit-Specific Study Material ............................................................................... 14
1.3.1. Preparation Material ......................................................................................... 14
1.4. Learning and Assessment Activities ................................................................. 14
2. Learning Unit 2 .............................................................................................................. 15
2.1. Unit Overview ...................................................................................................... 15
2.2. Learning Outcomes ............................................................................................ 15
2.3. Unit-Specific Study Material ............................................................................... 15
2.3.1. Preparation Material ......................................................................................... 15
2.4. Learning and Assessment Activities and Questions to Consider in this Unit 16
3. Learning Unit 3 .............................................................................................................. 19
3.1. Unit Overview ...................................................................................................... 19
3.2. Learning Outcomes ............................................................................................ 19

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 3.3. Unit-Specific Study Material ............................................................................... 19
3.3.1. Preparation Material ......................................................................................... 19
3.4. Learning and Assessment Activities and Questions to Consider in this Unit 19
4. Learning Unit 4 .............................................................................................................. 23
4.1. Unit Overview ...................................................................................................... 23
4.2. Learning Outcomes ............................................................................................ 23
4.3. Unit-Specific Study Material ............................................................................... 23
4.3.1. Preparation Material ......................................................................................... 23
4.4. Learning and Assessment Activities ................................................................. 24

Table 1: Icon Library ........................................................................................................... 3

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Table 1: Icon Library
Icon Description

Welcoming message

Module objective

Module outcomes

Action words, terms and concepts that need to be understood

Activities and resources made available on Blackboard

Prerequisites of the module

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Credits and notional hours relevant to the module

Face-to-face contact sessions

Activities to be completed individually (preparation). You may still ask for

feedback from your tutor or lecturer when you encounter aspects that you have
difficulty with

A quiz – usually made available for self-assessment on Blackboard

Unit-specific content for the module

The resources to be consulted (such as the textbook, additional reading

material, etc.)

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The roadmap that contextualises (puts into perspective) the different pieces of
information in the module

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An important reminder/caution from your lecturer

Assessment questions and opportunities

Unit-specific assessment criteria

A learning unit

Learning unit outcomes for a specific unit

Purpose of the learning unit

Student graduate attribute

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 1. WELCOMING

Dear student,

Welcome to LIEL 4814. This module focuses on International Economic Law and is presented in the
Department of Mercantile Law.

It is the responsibility of all students to ensure that they obtain all the information in connection with
this module. This information will be made available during formal lectures; on Blackboard (please
check the announcements often!); and in the Faculty of Law Rulebook. Attendance of all formal
classes is compulsory.

2. MODULE OBJECTIVE
The module currently forms part of the LLB and is taken in the 4 th year of study. The purpose of
LIEL4814 is to introduce you to the international law of sale as a cardinal aspect of the International
Economic Law. International economic law is a multiform and complex area of law. It contains rules
and regulations that belong to both the private and public law system of individual states as well as
rules and regulations that originate from international legislation and that influence the international
law of sales and international investment law. 1 To achieve the purpose, use is made of formal lecturers,
audio-visual media, articles, self-study and tasks.

3. MODULE OUTCOMES

After successful completion of this module, you should be able to:

 Sketch the relationship of international economic law with South African law, international
law, and private international law.
 Critically discuss the various legal concepts that find application within international
economic law.
 Reflect on the relevance and importance of international financial and trade organisations in
the alleviation of poverty and the development of member countries.
 Contrast the purposes and functions of the various international financial and trade
organisations.
 Evaluate the importance and role that ethics and integrity play in international investment
and trade transactions.

1
Kunig, Lau and Meng p.i.
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  Discuss the importance and role of the international financial and trade organisations on the
global economy.
 Demonstrate research and persuasive writing skills required to formulate appropriate
responses to legal problems involving international economic law and multiple sources. •
Communicate effectively and persuasively on issues relating to international economic law
and develop oral presentations that reflect the ability to collaborate constructively and
critically within the classroom.
 Demonstrate ethical integrity in written and classroom endeavours, as well as in effective time
management and compliance with academic module expectations.
 Apply the concepts, principles and legal theory of economic and trade law to real-life
scenarios in identifying, analysing and solving complex problems in critical and practical
ways.
 Demonstrate knowledge of international contracts of sale;
 Discuss the importance and role of the international treaties pertaining to international sale
transactions;
 Communicate effectively and persuasively on issues relating to dispute resolution;
 Discuss the importance of international investment law in international economic law
 Demonstrate knowledge of the protection and promotion of international investments.

4. LEARNING UNITS

In addressing the module outcomes above, the following learning units will be covered in this module:
Learning unit 1: Background, Principles, and rules for International Economic Law
 Policies underlying international economic relations.
 International Law and International economic law.
 The legal structure of the World Trade Organisation.
 Dispute Settlement in the World Trade Organisation.
 Tariffs and Quantitative Restrictions and non-tariff barriers.
 Non-discrimination in WTO Law
 Regional or Preferential Trade Agreement
 Trade and Environment.
 Subsidies and Countervailing Duties.
 The regulation of dumping
 Safeguard Measures or Escape Clause
 Trade in Services
 The African Continental Free Trade Agreement (AfCTA).
 The Agreement on Trade-Related Aspects of Intellectual
Property Rights (TRIPS).
 Agreement on Agriculture (AoA).
Learning unit 2: International Sales Law

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 Learning unit 3: international treaties pertaining to international sale transactions

Learning unit 4: International Investment Law

5. PREREQUISITES

There are no prerequisites for LIEL4814.

6. CREDITS AND NOTIONAL LEARNING HOURS

‘Notional learning hours’ indicate the amount of learning time taken by the ‘average’ student to achieve
the specified learning outcomes of the course unit or programme. This includes all learning relevant
to achieving the learning outcomes, e.g., directed study, essential practical work, group work, private
study, preparation and assessment.

This module has 10 credits, which implies that 10 credits x 10 notional hours of learning are expected
from students.

7. STUDY MATERIAL
• The prescribed textbooks for this module are:

1. International Economic Law (Southern) African Perspectives and Priorities, Kruger K, and
Sucker F, 1st edition, Juta publishers, 2021.
2. The International Law on Foreign Direct Investment, Sornarajah M, 3 edition, Cambridge
publishers, Cape town, 2021.
3. The Law and Policy of the World Trade Organization: Text, Cases and Materials, P Van den
Bossche, 3 edition, Cambridge University Press (2013).

Recommended Readings

 World Trade Law: Text, Materials and Commentary, Simon Lester and Bryan Mercurio et al,
Hart Publishing, (2012).
 The Legal TEXTS: The Results of the Uruguay Round of Multilateral Trade Negotiations
(1994), WTO, Cambridge University Press, (1994).
 Understanding Trade Law, Michael J. Trebilcock, Edward Elgar Publishing (2016)
 International Economic Law , Andreas F. Lowenfeld, Oxford University Press (2008).
 The Political Economy of the World Trading System: The WTO and Beyond, Bernard M.
Hoekman and Michel M. Kostecki, Oxford University Press (2009).
 The World Trading System: Law and Policy of International Economic relations, John H.
Jackson, MIT Press (1997).

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  The World Trade Organisation: A Guide to the Framework on International Trade, Bhagirath
Lal Das, ZED Books (1999).
 Donald H Regan, ‘Further Thoughts on the Role of Regulatory Purposes under Article III of
the general Agreement on Tariffs and Trade’ (2003) 37 Journal of World Trade 737.
 Steve Charnovitz, ‘(Review Article): Like Products in International Trade Law: Towards a
Consistent GATT/WTO Jurisprudence by Won-Mog Choi’ (2004) 98 (3) American Journal
of International Law 610-614.
 ST Mota Makore et al, Re-theorising international agricultural trade to realise the human right
to food in developing countries, Journal for Juridical Science 2022:47(2):88-123.
 ST Mota Makore et al, Prospects and Challenges for the acquisition of the human right to
food in international agricultural trade regulation, Comparative and International Law
Journal of Southern Africa, 2022.
 ST Mota Makore et al, Re-configuring the South African patent laws in search of an
Afrocentric approach for expanding access to essential patented medicines in the Covid-19
Era, Journal Perspectives of law and public administration, 2022.

Students should note that specific study material will also be used as part of the teaching and learning
in this module. This material and activities will be made available on Blackboard throughout the
semester. It is students’ responsibility to ensure that they obtain and prepare all reading material for
this module in time.

8. ASSESSMENT

8.1. ASSESSMENT BREAKDOWN

Your module mark / final mark will be calculated as follows:

ASSESSMENT TYPE (E.G. TEST, QUIZ, ASSIGNMENT, ORAL, CONTRIBUTION TO

BLACKBOARD ACTIVITY) MODULE MARK

This module is based  Writing assignment, four weeks (50 Assignment will
on continuous marks, will include essay type questions, contribute 40%, test
assessment. The paragraph writing). one 10%, test two
assessment plan for  Assessment 1, online test. (50 marks 50% to the overall
this module consists consist of multiple-choice questions). calculation of the final
of Two tests and one  Assessment 2, written on blackboard, (100 marks.
assignment. marks consist of essay questions and
paragraph writing)

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 8.2. ASSESSMENT CALENDER

Please consult the assessment calendar of the Faculty of Law for the dates of assessments. The
assessment calendar will be available on Blackboard at the commencement of the semester.

Please refer to the Faculty of Law Undergraduate Assessment Rules and Regulations that is available
on Blackboard and ensure that you are familiar with the contents thereof.

8.3. CALCULATION OF THE FINAL MARK

This module is assessed by way of continuous assessment, the average mark of all the assessment
opportunities whilst taking into consideration the different weightings of the assessments.

8.4. PASSING THE MODULE

To pass, a student should have taken part in all the assessment opportunities and obtain an average of
50%.

9. UPDATING OF MODULE INFORMATION AND RESOURCES

The module schedule and learning unit content, either orally or in writing, can be updated or modified
at any time by the lecturer. It is the responsibility of students enrolled in this module to stay up to date
with the schedule and curriculum. An announcement of this type can be given in face-to-face class
sessions or communicated on Blackboard. It is recommended that students check Blackboard weekly
to keep up to date with the latest developments in this module. Any work discussed during contact
sessions can be used for assessment purposes.
10. STUDENT GRADUATE ATTRIBUTES

Graduate attributes may be broadly defined as the qualities, competencies and understandings of a
graduate which a university community agrees students should develop during their time at the
institution, both for their future professions and to contribute as ordinary citizens.

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 These attributes include but go beyond the disciplinary expertise or technical knowledge that has
traditionally formed the core of most university courses. They are qualities that also prepare graduates
as agents of social good and for personal development in light of an unknown future.

The eight student graduate attributes identified by the UFS that will be developed during the course of
a student’s undergraduate studies, are the following:

The 8 Graduate Attributes:

Academic competence is a graduate attribute embedded in all assessments and refers to the knowledge,
skills and attitudes that students develop through their interaction with discipline specific content.
Critical to academic competence is lifelong learning, which is an all purposeful learning activity,
undertaken on an ongoing basis with the aim of improving knowledge, skills and competence. Lifelong
learners are curios, take initiative, learn independently, transfer knowledge, and reflect on their
learning.

Academic competence for the LLB learner means that the learner has a comprehensive and sound
knowledge and understanding of the South African Constitution and basic areas or fields of law. This
relates to the body of South African law and the South African legal system, its values and historical
background. The learner can demonstrate an integrated understanding of legal principles, concepts,
theories and values, also in relation to societal issues. The graduate has knowledge and understanding
of:
(a) the dynamic nature of law and its relationship with relevant contexts such as political, economic,
commercial, social and cultural contexts;
(b) a discipline other than law and law’s relationship to other disciplines; and (c) select areas of the
law.

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 Critical thinking is a habit of mind characterized by the comprehensive exploration of issues, ideas,
artifacts, and events before accepting or formulating an opinion or conclusion.

Critical thinking for the LLB learner means that the learner can demonstrate the ability to research,
analyse and evaluate information from a legal perspective. The learner is able to:
(a) recognise and reflect on the role, place and limitations of law in South African society and beyond;
(b) analyse a text and/or scenario to find the key issues, i.e., distinguish between relevant and irrelevant
information and distinguish between legal and non-legal issues;
(c) identify and address the issues presented in a text or scenario; and
(d) make judgments on the merits of particular arguments and make and present reasoned choices
between alternative solutions.

Problem solving is the process of designing, evaluating and implementing a strategy to answer an
open-ended question or achieve a desired goal.

Problem solving for the LLB learner means that the learner is able to:
(a) find, select, organise, use, analyse, synthesise and evaluate a variety of relevant information
sources;
(b) determine the relative authority of relevant information sources;
(c) present and make a reasoned choice between alternative solutions;
(d) use techniques of legal reasoning, methodology and argumentation to reach a plausible conclusion;
and
(e) demonstrate academic integrity in research.

Communication comprises of oral as well as written communication.

Oral communication is a prepared, purposeful presentation designed to increase knowledge, to foster

understanding, оr to promote change in the listeners' attitudes, values, beliefs or behaviours.

Written communication is the development and expression of ideas in writing. Written communication
involves learning to work in many genres and styles. It can involve working with many different
writing technologies, and mixing texts, data, and images. Written communication abilities develop
through iterative experiences across the curriculum.

Communication as an attribute of the LLB learner means that the learner is proficient in reading,
writing, comprehension and speaking and is therefore able to:
(a) communicate effectively by choosing appropriate means of communication for a variety of
contexts;
(b) demonstrate effective oral, written, listening and non-verbal communication skills;

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 (c) apply communication skills to relevant situations and genres; and (d) engage with diverse
audiences.

Ethical reasoning is reasoning about right and wrong human conduct. It requires students to be able to
assess their own ethical values and the social context of problems, recognize ethical issues in a variety
of settings, think about how different ethical perspectives might be applied to ethical dilemmas and
consider the ramifications of alternative actions. Students’ ethical selfidentity evolves as they practice
ethical decision-making skills and learn how to describe and analyze positions on ethical issues.

Ethical reasoning as an attribute of the LLB learner means that the learner can solve complex and
diverse legal problems creatively, critically, ethically and innovatively.

The LLB learner has knowledge of relevant ethical considerations in law and is able to conduct
her/himself ethically and with integrity in her/his relations within the university and beyond, with
clients, the courts, other lawyers and members of the public.

Community engagement is continuous negotiated collaborations and partnerships between the UFS
and/or its members and the interest groups that it interacts with, aimed at building and exchanging the
knowledge, skills, expertise and resources required to develop and sustain society.

Community engagement as an attribute of the LLB learner means that the learner has skills and
knowledge to understand the responsibilities of the legal professional in service to the community. In
doing so, the learner is able to recognize, reflect and apply social justice imperatives in acknowledging
the capacity, agency and accountability of the legal professional in shaping and transforming the legal
system and promote social justice.

Entrepreneurial mindset is a set of attitudes, skills and behaviours that can be applied in all spheres of
life. This mindset enables citizens to nurture their personal development, to actively contribute to
social development, to enter the job market as employee or as self-employed, and to start-up or scaleup
ventures which may have a cultural, social or commercial motive.

Entrepreneurial mindset as an attribute of the LLB learner means that the learner is able to:
(a) function effectively in independent and collaborative settings;
(b) recognise opportunities, be creative and innovative, be future-orientated, comfortable with
risktaking, take initiative, be self-reliant, flexible and adaptable.

Assessment of Graduate Attributes

Academic competence will form the foundation of all assessments throughout the LLB programme in
terms of which one or more of the other attributes will also be assessed to establish the attainment
thereof. It is a priority of the Faculty of Law of the UFS to develop all eight of the identified student
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 graduate attributes in all the modules presented throughout the course. However, the assessment to
establish the attainment thereof might only be performed in specific identified modules on different
levels, depending on the moment within which it falls during the academic programme.

Graduate attribute developed Learning outcome

Critical thinking 1-2

Problem solving 3
Academic
competence Written communication Assignment

Oral communication Assignment

Ethical reasoning 4

_________________________________________________________________________

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 1.1. UNIT OVERVIEW

This unit serves to give you an introduction to International Economic Law and will give the
background against which international trade takes place.
1.2. LEARNING OUTCOMES

You must be able to:

Examine the role of treaties in international economic law.

Evaluate the role of international organisations in international economic law.

Briefly explain the historical development and importance of international trade.

Explain the factors influencing international trade.

1.3. UNIT-SPECIFIC STUDY MATERIAL

You must read the document under study material on Backboard titled Learning Unit 1 Study Material.

1.3.1. PREPARATION MATERIAL

Please listen to the pre-recording of Lecture 2 and 3 on Blackboard.

1.4. LEARNING AND ASSESSMENT ACTIVITIES

You will be assessed on the contents of this learning unit during online test 1. Refer to Blackboard for
more information and announcements on assessment opportunities.

2.1. UNIT OVERVIEW

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 Learning Unit 2 deals with the basic principles of the law regarding an international sales transaction.
2.2. LEARNING OUTCOMES

You must be able to:

Examine the basic principles underlying the law of the international sale of goods;

Explain and discuss the general international organisations, treaties, agreements and codes
dealing with the international sale of goods;

Identify the risks in an international sales transaction;

Determine the law applicable to international sales;

Explain the necessity of harmonisation or unification of the law of international sale of goods;
Appraise the problems and other shortcomings in in the law of international sale of goods.
2.3. UNIT-SPECIFIC STUDY MATERIAL

You must read the document under study material on Backboard titled Learning Unit 2 Study Material.

2.3.1. PREPARATION MATERIAL

Please listen to the pre-recording of Lecture 4 and 5 on Blackboard.

2.4. LEARNING AND ASSESSMENT ACTIVITIES AND QUESTIONS TO
CONSIDER IN THIS UNIT

Fill in the missing word/s.

1. The presence of ___________________________ is an ever present reality for contractants to

any legally binding agreement. The nature of the risk varies according to the
______________________, ________________________ and
_______________________ to each contract and international sale transactions have their
own particular _____________________________.in this regard.
2. Generally an exporter may either elect to sell goods ____________________ to the importer
abroad or he may create a sales organisation abroad and conduct business through
________________________________________,
_____________________________, or _____________________________.

3. Serious factors, ______________________, ________________________or otherwise may

dictate exactly how the exporter structures his business.

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 4. An international sales negotiation includes _____________________,
_______________________________, substance, ____________________ and culture.

5. The contract between the exporter and the

importer is of the utmost
________________________ and extensive ____________________ should be given to it.

6. Contracts may be in infinitely varied in their ________________________and

_______________________, yet in practice the exporter and importer in an international sale
transaction will usually adopt a _______________________ contract, the incidents of which
are known and understood by ____________ parties.

7. The seller is naturally reluctant to part with the control of goods without receiving
__________________________ for them unless he can retain an
_______________________ in the goods as some sort of _______________ for payment.

8. The buyer is equally reluctant to __________________ for goods before he has received them
unless he can be given some kind of _________________________ over them.

Explain the necessity of harmonisation or unification of the law of international sale of goods.

Name some of the international conventions used in the attempt of unification of international trade
law, especially international sales law.

In international trade law there have been many attempts at harmonising trade law and practice either
by treaty, conventions or model codes. Give exapmles of some of these model codes.

Match the organisations named column B to the abbreviations in column A.

COLUMN A COLUMN B

ICC Customs Co-operation Council

Unidroit Asian-African Legal Consultative

Committee

UNCITRAL General Agreement on Tariffs and Trade

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 AALCC United Nations Commission on
International Trade Law

CCC International Chamber of Commerce

IMO United Nations Conference on Trade and

Development

UNIDO United Nations Development Program

UNCTAD Center on Transnational Corporations

UNDP International Institute for the Unification of

Private Law

CTC United Nations Industrial Development

Organization

GATT International Maritime Organization

Indicate whether the following statements are true or false.

(i) A contract is first of all governed by the law chosen by the contracting parties. True/False

(ii) In countries that have signed neither of the Hague Conventions or the European Contracts
Convention, the Hague Convention 1955 or 1986 remains applicable to international sales
contracts. True/False

(iii) In terms of the Hague Conventions, the manner in which and the time within which purchased
goods must be examined and the notifications that have to be dispatched in this respect, are
not determined by the law of the place where the examination takes place. True/False
(iv) The Hague Convention 1955 includes a number of transactions: the sales of securities, the
sales registered aircraft or the sales upon judicial order or by way of execution. True/False

(v) The Hague Convention 1986 also excludes a number of transactions that are also excluded
from its scope in the Vienna Convention on the international sale of goods. True/False

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 You will be assessed on the contents of this learning unit during online test 1 and the assignment.
Refer to Blackboard for more information and announcements on assessment opportunities.

3.1. UNIT OVERVIEW

Learning Unit 3 focuses on the obligations of the buyer and the seller and especially on the CISG.
3.2. LEARNING OUTCOMES

You must be able to:

Determine the obligations of the buyer and seller in an international sales transaction;

Explain the application and scope of the CISG;

Argue whether South Africa should ratify the CISG.

3.3. UNIT-SPECIFIC STUDY MATERIAL

You must study the document under study material on Backboard titled Learning Unit 3 Study
Material.

3.3.1. PREPARATION MATERIAL

Please listen to the pre-recordings of Lecture 6 and 7 on Blackboard.

3.4. LEARNING AND ASSESSMENT ACTIVITIES AND QUESTIONS TO
CONSIDER IN THIS UNIT

Indicate whether the following statements are true or false:

1. The United Nations Convention on Contracts for the International Sale of Goods was approved
on 11 April 1990 in Vienna during a Diplomatic Conference. True/False

2. The Convention was drafted by UNCITRAL and seeks to provide a single set of rules for
international sale transactions to provide a degree of certainty in these transactions. True/False

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 3. The Vienna Convention has been ratified or accepted by less than 50 nations ranging from
developed world economies to developing nations but excluding economic powers. True/False

4. The Convention Relating to a Uniform Law on the International Sale of Goods (ULIS) and the
Convention Relating to a Uniform Law on the Formation of Contracts for the International
Sale of Goods or Hague Convention (ULF), are rapidly becoming one of the most successful
multilateral treaties ever in the field of agreements designed to unify rules traditionally
addressed only in domestic legal systems.

5. Once the Vienna Convention has been ratified, it is self executing and automatically forms
part of the laws of such countries.

6. The Vienna Convention is important in that once the contract falls within its sphere of
application it finds application unless the parties provide otherwise.

Match the obligation stated in column B to the statement in column A.

COLUMN A COLUMN B

Seller To pay the price for the goods.

Buyer To take delivery of them as required by the contract and the

Vienna Convention

Seller To transfer the property in the goods

Buyer To deliver the goods and hand over any documents relating
to them.

Match the section of the Vienna Convention named in column B to the quotation in column A.

COLUMN A COLUMN B

“If the seller has committed a fundamental breach of contract, articles 67, Section 68
68 and 69 do not impair the remedies available to the buyer on account of
the breach.“

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 “Loss of or damage to the goods after the risk has passed to the buyer does Section 69(2)
not discharge him from his obligation to pay the price, unless the loss or
damage is due to an act or omission of the seller.”

“The parties may exclude the application of this Convention or, subject to Section 69(3)
article 12, derogate from or vary the effect of any of its provisions.”

“This Convention governs only the formation of the contract of sale and Section 6
the rights and obligations of the buyer and the seller arising from such a
contract. In particular, except as otherwise expressly provided in this
Convention, it is not concerned with: (a) the validity of the contract or any
of its provisions or any usage; (b) the effect which the contract may have
on the property in the goods sold.”

“If the contract relates to goods not then identified, the goods considered Section 70
not to be placed at the disposal of the buyer until they are clearly identified
in the contract.”

“However, if the buyer is bound to take over the goods at a place other than Section 66
the place of business of the seller, the risk passes when delivery is due and
the buyer is aware of the fact that the goods are placed at his disposal at
that place.”

“In cases not within articles 67 and 68, the risk passes to the buyer when
he takes over the goods or, if he does not do so in due time, from the time
when the goods are placed at his disposal and he commits a breach of
contract by failing to take delivery.”

“The risk in respect of goods sold in transit passes to the buyer from the Section 69(1)
time of the conclusion of the contract. However, if the circumstances so
indicate, the risk is assumed by the buyer from the

time the goods were handed over to the carrier who issued the documents
embodying the contract of carriage…”

You will be assessed on the contents of this learning unit during online test 2 and the assignment.
Refer to Blackboard for more information and announcements on assessment opportunities.
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 4.1. UNIT OVERVIEW

In Unit 4 we will look at international investment law. We will look at general aspects of international
investment law in order to give you a broad overview of the most important aspects of international
investment law.
4.2. LEARNING OUTCOMES

You must be able to:

Determine the obligations of the buyer and seller in an international sales transaction;

Appreciate the basic principles underlying the law of the international investments;

Examine investment vehicles and the policies underlying investment;

Identify problems and other shortcomings in the law of international sale of goods;

Appraise the treatment and the protection of an international investment;

Identify and explain the aspects to be dealt with in an investment treaties and contracts.

4.3. UNIT-SPECIFIC STUDY MATERIAL

You must study the document under study material on Backboard titled Learning Unit 4 Study
Material.

4.3.1. PREPARATION MATERIAL

Please listen to the pre-recordings of Lecture 8 and 9 on Blackboard.

4.4. LEARNING AND ASSESSMENT ACTIVITIES AND QUESTIONS TO
CONSIDER IN THIS UNIT

1. Define investment.
2. Name the different types of investment.

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 3. Name the different vehicles for foreign investments.

Fill in the missing word/s.

1. The state where the investment takes place, the

______________________________, regulates the basis for the investment.

2. The investment laws of GATT members have to respect the GATT principle of
_________________________________________.

3. The Calvo Doctrine and the Calvo Clause are very _____________________ concepts.

4. The ________________________ of the world’s states did not recognise the

_________________________ of the Calvo Doctrine.

5. Although the Calvo Clause has not been __________________________ in international law,
certain international instruments have __________________ incorporated provisions
recognising and providing for ________________________ countries’ concerns.

6. The two concepts of ____________________________

and absolute
_____________________ of _____________________ with nationals are the essence of the
Calvo Doctrine.

Indicate whether the following statements are true or false.

1. A host country may change international investment laws. TRUE/FALSE

2. Any changes by a host country of its national laws cannot affect investments already made.
TRUE/FALSE

3. An investor who seeks protection against changes in the law may enter into an expressed
agreement with the host country in which the host country specifically commits itself to
treating the investment as indicated in the agreement. TRUE/FALSE

4. If subject to international law, an investment agreement is largely immune from the national
law of the host country. TRUE/FALSE

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 5. Investment contracts regularly contain an explicit stabilsation clause in which the foreign
investor promises not to introduce future national legislation conflicting with the agreement.
TRUE/FALSE

Fill in the missing words.

1. Foreign investors can also be _______________________ by

investment ____________________________.

2. Investment treaties, intended to __________________ investments, dictate

____________________ the host country must ________________ such investments.

3. If the host country _____________________ an investment treaty, it can be held

____________________ under _____________________ law and may risk international law
_______________________________.

4. Binational treaties regulate investments in both directions, i.e. when both contracting states
either ___________________ or ______________ capital.

5. Bilateral investment treaties set out in detail the _________________________ nationals of

one contracting state will enjoy in the other contracting state.

Name and briefly explain the two most important factors underlying an investment policy.

Explain why it may be of importance to a government to promote foreign investment.

You are counsel to the South African government and must draft an investment promotion and
protection treaty between South Africa and Ghana. Indicate the most important aspects to be dealt with
in such a treaty and see whether you will be able to draft such a treaty.

You will be assessed on the contents of this learning unit during online test 2. Refer to Blackboard for
more information and announcements on assessment opportunities.

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