Chapter 1 - IBC-2024 - SV

Chapter 1: Negotiating Delivery
1. What is an IBC?
2. What are the main points in an IBC?
3. What points should be mentioned in a clause of Delivery in an IBC ?
1. What is an IBC
An international business contract is a legal binding
agreement between two or more parties from different
countries who intend to do business with each other. These
contracts typically outline the terms and conditions of the
business arrangement, including the rights and
responsibilities of each party, the scope of work, the
payment terms, the delivery schedule, and other important
details.
2. The main points in an IBC
3. The main points should be mentioned in a Clause of Delivery in an IBC ?

-
Guessing skills
1. Ignsaerut tead
2. hte teda fo notiexuce
3. cginom iotn ecrfo
4. elyrveid etda
5. ffocut deta
6. deatliqidu esgdmaa
7. isaqu innmiytde
8. Ltypnae
9. Acegr iodpre
10. radaw fo aesgdam
11. atorycoensmp adgames
1. Signature date,
2. The date of execution: a date on which both parties sign a contract
3. Coming into force (contract is biding and effective)
4. Delivery date
5. Cut-off date ( if contract has not come into force by this date - no contract)
6. Liquidated damages (a sum of money that will fully and adequately compensate the
buyer for any measurable loss.
7. Quasi indemnity (A figure to relieve the exporter of liability for delay in delivery. It is
enforceable everywhere but open to challenge as unconscionable
8. Penalty: A figure to terrorize the exporter into punctual delivery. It is not enforceable in
English law or other common law systems
9. Grace period: a certain time after the agreed delivery date in which a seller is not
liable for making compensation to the buyer for the delay. It is used to facilitate early
delivery.
1. Compensatory damages: a sum of money that will fully and adequately compensate
the buyer for any measurable loss
2. Cut-off date: A date by which there is no contract if it hasn’t come into force
3. A date of execution: a date on which both parties sign a contract
1. xcuesed elady
2. acgre rioped
3. naltpey
4. erfoprm or ypa
5. warad of magdaes
6. credee of ecifispc formanperce
7. ivicl wla
8. rdeor rformanpece
9. oncomm awl
10. ctcorre uatiositn.
11. orcfe mreajeu visiopron
1. excused delay
2. A grace period
3. penalty
4. Perform or pay
5. award of damages
6. decree of specific performance
7. Civil law
8. order performance
9. Common law
10.correct situation.
11.force majeure provision
1. rectioinsurns,
2. ctas of abotasge
3. ilarsim rrencoccues
4. abolr nreust
5. ewlyn ioducentrd wsla
6. overnmegnt rationsegul
7. vernmegont nactio
8. avoidabunle ccideant
9. normaabl aturnal venet
10. medieres
11. achbre of ontracct
12. uasiq emniindty
13. aximumm ductioden
14. elayded odgos
1. insurrections,
2. acts of sabotage
3. similar occurrences
4. labor unrest
5. newly introduced laws
6. government regulations
7. government action
8. unavoidable accident
9. abnormal natural event
10. remedies
11. breach of Contract
12. Quasi-indemnity
13. maximum deduction
14. delayed goods
What are 5 steps in negotiating delivery?
1.1. Date of delivery, delay and result of delay
1.2. Place of delivery and alternatives
1.3. Mode of transportation to be used
1.4. Transfer of risk, ownership and insurance,
1.5. Incoterms to be used
1.1 When must delivery take place?
• The date of dispatch from the factory
• The date of loading onto ship
• The date when the goods arrive at the destination
1.2 What is the place of delivery ?
• Delivery is the point at which risk passes from the seller to the buyer.
• Delivery may take place at any agreed points along the transportation route
4. How to fix the date of delivery
5. Specimen clauses (Trans.)
Coming Into Force
5.1 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.
5.2 If the contract has not come into force within ninety days of execution, it
shall become null and void.
5.3 The date of delivery shall be twenty- eight days after the date of coming
into force of the contract.
5.4 Time is and shall be of the essence of this contract.
6. Excused Delay
- What is Excused delay and the grace Period?
- What is result of delay in delivering the goods from the Seller to the Buyer ?
- What should the seller do to relieve his duty of compensation?
Specimen Clause (Translation): Force majeure provision:
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.
7. Unexcused Delay and Remedies for Breach of Contract
-
Solutions to deal with the breach of Contract?
-
8. Liquidated Damages and Penalties
How many kinds of damages ?
-
-
9. Specimen clause:
Liquidated Damages (Tran.)
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 the delivered
price of the delayed Goods.
10. EX.
Gap-filling 1
• The date of delivery may be a simple ......... 1 date
• If approvals or certificates are required, the contract may have two starting dates: the
date of .......... 2 and the date of ............... 3 into ........ 4; delivery is ............5 for a
number of days after coming into force.
• If the contract has not come into force by a certain date - No ...............6
Key:
Gap-filling 2
• Delivery is the point at .......7 ..........8 passes from the seller to the buyer.
• Delivery may take place at any agreed...........9 along the transportation
route.
• Key:
Gap-filling 3: Incoterms allow the contract to
state the place of delivery simply:
• Delivery of the Goods shall be ............ 6 FOB (Mombasa).
• For F-terms and C-terms this is the place of.................8.
• A common ............9 allows the seller to deliver under an FOB contract even if the
importer's ship ..............10 to arrive. The seller delivers instead to a......... 11 warehouse
at the ............ 12.
• Key:
Gap-filling 4
• Failure to perform by one side allows the other side to seek a ...........1 remedy.
• Courts in Continental (civil) law countries order ............ 2 first, with .................. 3 if
performance is impossible (as in the case of late delivery).
• Courts in Anglo-American (common) law countries ................4 damages first with
specific ...............5 only if an award of ..............6 does not fully ............ 7 the situation.
Key:
Gap-filling 5
• Figure for compensatory damages may be ................1 before loss occurs,
or ................2. A pre-calculated sum fixed before loss occurs is payable
as ...............3...............4
Key:
Gap-filling 6
• If the parties must wait for the contract to become ............1, the delivery
date often ……….2 on the date of coming into force.
• Some contracts (especially fixed-price contracts) set a ................3 date after
which the contract cannot come into ……4.
• Key:
• A grace period is sometimes used to .......5 early delivery.
• Sometimes delay in delivery is caused by a .......6 ........7 event, i.e., an event
beyond the control of the exporter.
• A force majeure clause often.......8 the exporter of his ……. 9 to deliver until
the force majeure event is over.
• Key:
• If the force majeure event continues for too long, both parties should have
the right to.............. 10 the contract
• Late delivery causes loss to the buyer- loss that must be...........11. To avoid
the cost and ……………12 of legal ................13 , many contracts ……………..14
in advance the ............15 for late delivery.
Key:
• Many export contracts cannot "come into force" (become effective) until
certain .......16 (for example, government approvals) are met.
• Loss caused by late delivery is not easily quantified, so …………17
compensation is normal. The lump-sum may be set too high
(....................18), about right (liquidated damages), or too low (............19).
The motive behind the penalty is to..........20 one party into full performance.
Key:
11. Decide whether the following statements are true or false.
1. A penalty is not enforceable in Continental courts, though the quasi-indemnity is usually
enforced.
2. The place (and time) of delivery must be ambiguously agreed because many contract
events (including payment and transfer of risk and title) are tied to delivery.
3. The place of delivery should be confused with the destination of the goods.
4. Delivery of goods under most export contracts takes place in the country of the exporter,
at the docks in the case of sea transport, and when the goods are handed over to the
carrier in most other cases.
5. CIF and FOB contracts are especially confusing since they name the point of destination,
e.g., CIF (Lagos). Lagos, in this example, is the point up to which the exporter is
responsible for costs, not the place of delivery.
Voca. (Review)
1. estindation of eth oodsg.
2. cksdo
3. acepl fo elivedry
4. liveundered trap
5. ecombe ectiveffe
6. umpsulm
7. Lluf ormaperfnce
8. arlye elivedry
9. rtiapal elivedry
10. cuseunexd elady
11. eredym
12. rcfoe ajemure
12. Translation (V-E)
1. Nếu một bên bị ngăn cản hoặc trì hoãn việc thực hiện bất kì nghĩa vụ nào
của hợp đồng này thì bên đó sẽ phải thông báo ngay lập tức cho bên kia về
trường hợp bất khả kháng này, các nghĩa vụ có liên quan và thời gian diễn ra
sự kiện bất khả kháng.
2. Bên bán phải trả cho bên mua tiền bồi thường thiệt hại ước tính là 0,1% giá
trị của hợp đồng tính cho mỗi tuần giao hàng trễ, nhưng tối đa là 20% giá trị
của hợp đồng
3. Việc thanh toán sẽ phải được thực hiện trong vòng 20 ngày kể từ ngày nhận
được “Vận đơn sạch, hàng đã được giao lên tàu” của Bên A.
12. Translation (V-E)
4. Hàng sẽ được giao theo Incoterms 2000. Rủi ro và quyền sở hữu đối với
hàng hóa sẽ được chuyển từ người bán sang người mua tại thời điểm giao
hàng.
5. Nếu có bất kỳ sự kiện bất khả kháng nào ngăn cản hoặc trì hoãn việc thực
hiện bất kỳ nghĩa vụ nào kéo dài hơn 90 ngày thì mỗi bên có thể chấm dứt hợp
đồng ngay khi thông báo kịp thời cho bên kia
6. Nếu có bất kỳ sự kiện giao hàng trể nào nằm ngoài lý do bất khả kháng thì
người bán sẽ phải trả tiền bồi thường thiệt hại ước tính, chứ không phải là
tiền phạt trị giá 1% giá trị hợp đồng tính trên phần hàng chưa giao cho số ngày
giao hàng trể nhưng tối đa là 20% giá trị hợp đồng theo điều khoản số 9 dưới
đây.
E-V Translation
1. 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
2. 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 event prevents or delays performance of any duty
under this Contract for more than sixty days, then either party may on due
notification to the other party terminate this Contract.
2.
3. If Buyer fails to give such shipment instructions within a reasonable time
prior to shipment, Seller may, at its sole discretion and for Buyer's risk and
account, arrange for the vessel or the vessel's space and make shipment of the
Goods without prejudice and in addition to any other rights and remedies
Seller may have under this Contract or at law or otherwise.
3.
4. The BUYER may, at the BUYER’s option, inspect the Goods prior to shipment.
At least <FIGURE> 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
the purposes of inspection at a reasonable time agreed by the parties.
4.
5. Nothing herein contained shall be construed as transferring any patent
trademark, utility model, design, copyright or any other intellectual property
rights in the Goods, all such rights being expressly reserved to the true and
lawful owners thereof.
5.
6. The failure of Seller at any time to require full performance by Buyer of the
terms hereof shall not affect the right of Seller to enforce the same. The
waiver by Seller of any breach of any provision of this Contract shall not be
construed as a waiver of any succeeding breach of such provision or waiver of
the provision itself.
6.
7. In the event of late Delivery for reasons other than Force Majeure as
defined in Clause 17 below, the SELLER shall pay as liquidated damages and
not as a penalty the sum of 5% of the value of the undelivered part per Day of
late Delivery up to a maximum of 10% of the Contract Price.
7.
8. Payment of liquidated damages shall be due without the BUYER having to
furnish proof of any loss, damage or injury. Payment of liquidated damages
shall constitute full and complete satisfaction of any claim of the BUYER
against the SELLER arising from or in connection with late Delivery of any
Goods.
8.
9. This Contract shall not come into force under clause 16 below until the
SELLER has received advice that the Letter of Credit has been opened in his
favor and has ascertained that the terms are in accordance with those agreed
between by the Parties and the letter of Credit as issued shall be notified by
the SELLER to the BUYER immediately.
9.
10. If a material discrepancy in quantity exists and is duly notified to the SELLER, the BUYER
at his discretion and subject to Clause 8.2 above may either:
• a. Accept the delivered portion of the Goods and require the SELLER to deliver the
remaining portion forthwith; or
• b. Accept delivered portion of the Goods and terminate the remaining portion of the
Contract upon due notice given to the SELLER.
10.
1. Nếu một trong hai bên của hợp đồng bị gây cản trở hay làm chậm trễ trong việc thực hiện
bất kỳ nghĩa vụ nào theo hợp đồng này do một sự cố ngoài tầm kiểm soát hợp lý của mình,
thì sự cố trên sẽ được xem là bất khả kháng và bên liên quan sẽ không bị xem là không hoàn
thành nghĩa vụ . Sự cố bất khả kháng bao gồm nhưng không giới hạn ở: chiến tranh ( bất kể
là có tuyên chiến hay không), bạo động, khởi nghĩa, hành động phá hoại và những sự cố
tương tự khác;đình công hoặc những hình thức tụ tập người lao động kháca; luật hoặc quy
định mới ban hành của chính phủ; sự chậm trễ do có sự can thiệp của chính phủ hoặc do
chính phủ thiếu hợp tác; cháy, nổ, hoặc những tai nạn không thể tránh khỏi khác.
1.
2. Nghĩa vụ giao hàng của người bán được quy định cụ thể trên bề mặt của
hợp đồng trước thời điểm hoặc trong khoảng thời gian được nêu rõ trên bề
mặt của hợp đồng sẽ tùy thuộc vào tình trạng sẵn sàng của tàu hoặc khoang
tàu.
2.
3. Nếu, theo điều khoản của hợp đồng này, người mua sẽ phải giành được tàu
hoặc lưu được khoang tàu, thì người mua có nghĩa vụ phải giành hoặc thu xếp
được tàu hoặc khoang tàu cần thiết và gửi cho người bán hướng dẫn giao
hàng trong một khoảng thời gian phù hợp trước khi giao hàng, bao gồm nhưng
không giới hạn tên và lịch trình chi tiết của tàu.
3.
4. Trong trường hợp giao hàng từng phần, bất kì sự chậm trễ hay không hoàn
thành việc giao hàng một trong các chuyến sẽ không bị xem là vi phạm hợp
đông và không dẫn đến quyền hủy hơp đồng hoặc từ chối nhận các chuyến
hàng khác của người mua
4.
5. Việc thanh toán số tiền bồi thường thiệt hại ước tính phải đáp ứng hoàn
toàn và toàn bộ những yêu cầu mà người mua đòi hỏi từ người bán phát sinh
từ hoặc có liên quan đến việc giao hàng trễ. Cụ thể như, người bán không có
nghĩa vụ phải chịu trách nhiệm đối với những mất mát và thiệt hại có tinh gián
tiếp như đã nêu trong điều 2.7 ở trên, phát sinh từ hoặc có liên quan đến việc
giao hàng trễ.
5.
6. Tất cả các loại thuế, lệ phí khẩu, phí, phí ngân hàng và các loại phí khác phát
sinh từ hàng hóa, các con tơ nơ và/ hoặc bất kỳ chứng từ ( bao gồm nhưng
không giới hạn những giấy chứng nhận xuất xứ ở nước xuất khẩu) sẽ do người
bán thanh toán/chịu trách nhiệm.
6.
7. Nếu con tàu do người mua chỉ định không tới được vào đúng hoặc trước
ngày giao hàng thỏa thuận thì người bán có thể tự ý giao hàng vào một kho
ngoại quan ở cảng của Sài Gòn và sẽ được xem là đã hoàn thành nghĩa vụ giao
hàng của mình theo hợp đồng này.
7.
8. Các bên hiểu rằng việc nhập khẩu hàng hóa vào nước …đòi hỏi việc kiểm tra
hàng hóa bởi SGS trước khi giao hàng từ nước xuất khẩu. Người bán đồng ý
hợp tác chặt chẽ với SGS trong việc cho phép tiếp cận hàng hóa hoặc cung cấp
bất kỳ thông tin cần thiết nào về hàng hóa cho mục đích kiểm tra như vậy.
8.
9.Hàng hóa phải được đóng gói trong… và phải được bảo vệ tốt có chống ẩm,
va đập, gỉ sét hoặc xử lý hàng mạnh tay. Người bán có nghĩa vụ phải chịu trách
nhiệm cho bất kỳ hư hỏng, thất thoát của hàng hóa do việc đóng gói bị lỗi
hoặc không phù hợp.
9.
10. Giao hàng sớm hơn…ngày thì được cho phép; trong trường hợp này, việc
thanh toán phải được thực hiện như thể đó là ngày giao hàng thực tế đã được
thỏa thuận trong hợp đồng. Giao hàng từng phần thì được phép theo hợp
đồng này theo như thỏa thuận giữa 2 bên; tuy nhiên, bất kỳ chi phí nào phát
sinh từ việc giao hàng từng phần sẽ do <người mua,người bán> thanh toán.
10.
Find equivalence in English (review)
1. Phụ thuộc vào việc có sẵn khoang tàu .
2. Hợp đồng sẽ trở nên hết hiệu lực.
3. Người bán tự định đoạt
4. Không làm ảnh hưởng đền
5. Người Mua mời SGS giám định hàng hóa
6. Người Mua khiếu nại người Bán bằng telex
7. Theo HĐ này, theo luật hoặc theo các qui định khác
8. Chấm dứt HD ngay khi thông báo kịp thời cho bên kia
9. Cho phép tiếp cận hàng hóa vì mục đính giám định
10. Cung cấp bằng chứng về tổn thất, thiệt hại, hư hại của hàng hóa
11. Phát sinh từ hoặc có liên quan đến việc giao hàng trể
12. Trong trường hợp giao hàng trể nằm ngoài lí do bất khả kháng
13. Phần hàng chưa giao tính trên số ngày giao hàng trể
14. Bao gồm nhưng không giới hạn
Study the contract clause below, and then answer the questions.
• Fine Payable
• If the Seller fails to deliver the Goods at the fixed date, a fine shall be
imposed 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, or any part of it.
• 6% for the third week, or any part of it.
• 8% per week for the fourth week, or part of it, and for all succeeding weeks.
• The fine shall be calculated on the total contract value
1. The clause uses the word "fine." Does that tell you for certain what kind of
clause you are looking at? (Penalty clause or liquidated damages clause?)
2. After how long a delay does the exporter lose 100% of the contract
price? ..........WEEKS
3. Do you think this clause is a penalty clause or a liquidated damages clause?
4. If an English judge applying English law looks at this clause, will it be
enforceable? ⁪
CHAPTER 1: Q&A
1. Where is risk often passed from the exporter to the importer?
2. What are modes of transportation?
3. Where is risk often passed from the exporter to the importer?
4. Where does transfer of ownership take place?
5. What are kinds of delay in delivery?
6. What events does delivery date trigger?
7. Name types of Insurance policy?
8. Name some features of liquidated damages?
9. Name some features of penalties?
10. How to fix the delivery date in a contract?
CHAPTER 1: Q&A
11. When is a contract binding and effective?
12. What is the importance of a well-designed set of specifications?
13. What is excused delay?
14. What are the 3 outcomes of FM?
15. What are liquidated damages?
16. What are penalties?
17. Explain the differences between liquidated damages and penalties?
18. Name types of Insurance policy?
19. What are main functions of ocean BL?
20. What are requirement of BL when payment is made by LC?
Guess the following terms with the jumbled letters
1. Isurncena cpilyo
2. cetcaeiitf of usrainnce
3. eonp reovc
4. gnitlofa icyplo
5. noitreetn of eltit
6. kgapingac and ingrkmag
7. osls of sdoog
8. Tivefecde ckainagpg
9. Cusedla iBll fo dinlag
10.Sipngpih armk
11.gotineable umeinnstrt
12.tfuigioam
1. olithdinwhg
2. aimcterouncl ainagst the throe arpty
3. be tditleen to ferues
4. raceple ectiefdve oodgs
5. omce to ghtli
6. efedcts iaitybill eriopd
7. nnemar uuasl
8. pnessdam or ocshk
9. utabatbletri to opeimprr aginpkgac
10.etidiscron
11.tsoc fo orastge
13. ippishng dmentocus
14. Ssigans uraninsuce eemagrent
15. Ffseot gnaaist.
16. creov ionescrimisdpt
17. sencontequial sslo
18. at ish won sirk and ostc
19. mkea oogd teh tcedef
20. Cludiinng ubt otn itelimd ot
1. What is B/L?
2. State 3 functions of B/L?

1. Evidence of Contract of Carriage
2. RECEIPT of the cargo
3. Document of Title to the goods

Find out the contract terms
1. an agreement with an insurance company covering all their shipments over
a period of time.
2. An insurance document issued to the buyer covers an individual

consignment . It states in outline the cover offer and the details of the
individual shipment.
3. offers the exporter insurance cover on all shipments over a period of time.
It is open-ended and does not expire, although there are provisions for
cancellation on due notice
4. offers the exporter insurance cover on all shipments over a period of time.
It is set up for a particular time and automatically expires unless renewed..
5. The value can be established after a loss; naturally, the exporter must prove
his figures precisely. As long as the figure does not exceed the total cover
under the policy, the insurer will pay.
6. the value of the goods can be stated on the insurance document. Its stated
figure can include not only the cost of the goods but also the profit the
exporter hoped to make on them.
PART2
This Lecture is divided into 3 sections
1. Transport
2. Risk, Title and Insurance
3. Transport: Packaging and Marking

1. Transport
1.1 Packaging
• In terms of packing, in What conditions are goods considered to conform to
the contract ?
To avoid misunderstanding, the parties often regulate the matter:
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 improper or defective packaging.
Specimen Clause:
• The BUYER shall advise the SELLER of the name of the vessel not later than
<NUMBER> Days before the agreed Delivery date. If the vessel named by
the BUYER fails to arrive on or before <DATE>, then the SELLER may at his
discretion deliver the Goods to a bonded warehouse in the port of <PLACE
OF DELIVERY> and shall be deemed to have fulfilled his Delivery obligations
under this Contract.
• In this event, the SELLER must notify the BUYER of the full circumstances of
the Delivery to the warehouse. With Delivery to the warehouse, all costs,
including but not limited to cost of storage and insurance are to the
BUYER's account.
1.2. Are these statements true or false?
1- Packaging of dangerous goods is subject to special regulations in some
countries.
2- Most national laws require fumigation of all containers entering the country.
3- Agriculture-based economies may place severe restrictions on packaging
materials: hay, straw and rice husks are forbidden; wooden packaging must
be fumigated.
4- The importer shouldn’t inform the seller about all known regulations
1.3. Marking : What is marking concerned with? What will happen if
packaging or marking are incorrect ?
1.4 Specimen Clause:
On the surface of each package delivered under this Contract shall be marked:
the package number, the measurements 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
1.5 Transport: Waybills
1. What are the five main Waybills (or Bills of Lading?
2. When is a Marine Bill of Lading as Negotiable Instrument ?
3. What is difference between Clean and Claused Bills of Lading?
4. What will happen if a waybill bearing such clauses is not "clean' ?
4. Risk, Title and Insurance
• 4.1. Define Risk and Title?
1. Risk and transfer of risk ?
2. Title and transfer of title ?
Gap-filling 1
• 1. Property, legal or ..................1, in any goods supplied by the seller
shall ...............2 to the buyer only when the seller has received ...................3
payment for all .............4 then ................5 by the buyer to
the.......................6.
• 2. Goods in respect of which ...............7 has remained with the seller shall
be kept ................. 8 as those of the seller, and the buyer shall at
its ...................9 immediately return such goods to the seller, or ...................
10 the seller to enter into the buyer's .................. 11 to collect such
goods .............. 12 the seller so request.
4.3. Insurance :
 What are risks normally covered ?
 Name the main kinds of insurance policies ? Make the differences

among them?
 What is minimum coverage - Cargo Clause C ?
4.4. Gap-filling
1. Ownership of goods in a foreign country is often of no ......................... 1
value; therefore; many contracts stipulate: Title to the goods shall pass
with.............2.
2. The seller usually insures up to the point of ......................3; the
buyer ......................4
Key:
3. Under CIF and CIP contracts, the seller must pay insurance from the point of
delivery to an agreed .............................5. This insurance (under Incoterms) is
minimum ................6 -Cargo Clause C- unless the parties agree .......................
7.
Key:
4. Although the seller pays for insurance ; the risk is entirely the ................... 8.
5. Delivery of the Goods shall be made <INCOTERM>. The ....................... 9
date of Delivery shall be <DATE OF DELIVERY>. Risk and ................... 10 to
the Goods shall pass from the SELLER to the BUYER on ........................ 11
Key:
5. Are these statements true or false? Why?
1. The contract should specify the type of packaging and the shipping marks
agreed by the parties.
2. On delivery, the exporter receives from the importer the most important of
all the shipping documents, the bill of lading (or consignment note).
3. Each mode of transport has a characteristic shipping document: the marine
bill of lading, the air waybill, the rail consignment note, and the road
consignment note are the most common. Combined transport (container
transport) uses a combined transport bill of lading.
4. Under certain circumstances, a marine bill of lading can be made into a
negotiable document.
5. The marine bill of lading, to be acceptable as a shipping document under a letter
of credit, must bear the notation that the goods have been shipped on desk a
named vessel.
6. Payment under a letter of credit depends largely on the correctness of the
shipment documents.
7. Payment under a letter of credit may be promptly made if the letter of credit
repeats exactly the contractual packaging requirements but the exporter has
failed to meet them.
8. The carrier will note any defects in the packaging, weight or general appearance
of the goods on accepting them from the exporter.(The carrier does not inspect
the goods themselves, only the packaging.) To be acceptable under a letter of
credit, all shipping documents must be "clean," i.e., free of notes about defects.
9. In CIF and CIP contracts, the importer must pay for insurance from the point of
delivery to the named point of arrival.
10. Unless otherwise agreed, this insurance is "maximum cover"- Cargo Clause A.
11. In CIF and CIP contracts, the importer normally assigns the insurance
agreement to the seller.
the exporter, the seller
12. The insured can make three kinds of arrangement with the insurer: the
tailor-made policy, the floating policy, and the open cover.
13. Open cover is not a policy : the insurer will write a policy if required.
14. The normal insurance document under an open cover is the Insurance
Policy; the certificate is, in principle, the equivalent of a policy.
15. A marine insurance policy has three variant clauses: Cargo Clauses A, B
and C. Clause C covers anything not excluded; Clauses B and A exclude
anything not expressly covered
16. Even an "all risks" policy (Cargo Clause A) includes many risks.
17. Goods must be correctly and fully described on the insurance document or
cover may be withdrawn.
18. A "held covered" clause offers some protection against innocent
misdescription. The main principle of insurance is "utmost good faith."

Chapter 1 - IBC-2024 - SV

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Chapter 1 - IBC-2024 - SV

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Chapter 1: Negotiating Delivery

3. The main points should be mentioned in a Clause of Delivery in an IBC ?

2. State 3 functions of B/L?

2. RECEIPT of the cargo

3. Document of Title to the goods

2. An insurance document issued to the buyer covers an individual

2. Risk, Title and Insurance

3. Transport: Packaging and Marking

 Name the main kinds of insurance policies ? Make the differences

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