Unit 1

1) Explain the relevance of Article 96 of CISG

CISG considers written and oral contracts valid. If however, a country has adopted Article 96
of CISG, then that country will only consider written contracts as valid, and not oral
contracts.

2) What is the Mirror Rule. Is it applicable to contracts under the CISG?

Mirror Rule states that a contract is only valid if the offer and acceptance are identical. CISG
does not require this. Any moderation made by one party to the terms of the offer are
considered automatically accepted by the other party, unless the other party explicitly
repudiates it. This is the ‘Last Shot’ Rule.

3) What are the three element of non-conformity under the CISG?

Article 35 of the CISG delineates the elements of non-conformity as quantity, quality, and
description.

4) Explain Anticipatory Breach with the relevant article under CISG

Article 72 deals with anticipatory breach and allows the buyer to avoid the contract if he has a
reasonable basis for believing that the seller will fundamentally breach the contract. Under
Article 72(2) the Buyer must give Reasonable Notice and allow the seller time to reassure the
buyer that he will perform the contract, before the buyer can avoid the contract.

5) Explain Open Price Contracts under the CISG

Article 55 of the CISG allows the buyer and seller to conclude a contract without fixing the
consideration. The consideration is then assumed to be the market value/ordinary value of
those goods at the time and place of the delivery.

6) Explain the concept of Restitution under CISG

Per Article 81, if a contract is avoided, the buyer or seller, who has performed his part under
the contract, is entitled to receive either the goods back, or an amount equivalent to what has
been paid/supplied.

7) What is the Dispatch Theory?

The Dispatch Theory, incorporated under Article 16, states that an offer, even an irrevocable
one, may be revoked until the acceptance is dispatched.

8) What are the Obligations of the Seller under Article 30, CISG?
⮚ Actual Delivery of Goods

⮚ Delivery of Conforming Goods

⮚ Delivery of Documents pertaining to the Goods

⮚ Transfer of Property in the Goods

9) What are the Obligations of the Buyer under Article 53, CISG?
⮚ Pay the price of the goods; and

⮚ Take delivery of the goods

10) What is Article 79, CISG?

Article 79 lays down the concept of impediments/hardships, and states that a party is not
liable to perform a contract, if he encounters an impediment he could not have reasonably
foreseen, at the time of entering into the contract, and he could not have reasonably avoided
the hardship or overcome its consequences.

Unit 2

1) What is the criteria for registration of an operator as a multimodal transport operator

As per section 4 of the Multimodal Transportation of Goods Act, 1993, any person may be
registered as an MTO provided he is:
✔ engaged in the business of shipping/is a freight forwarded, with a minimum annual
turnover of Rs. 50 lakhs; AND
✔ Has offices/agents in at least two countries.

2) What is a clause bill of lading

A bill of lading in which the carrier has specified certain reservations, and has notated
flaws/damage to the goods at the port of origin is a clause bill of lading.

3) Differentiate between ‘Commercial Invoice’ and ‘Packing List’

A Commercial Invoice is an itemized list of all the goods shipped, necessary for customs
clearance, payment of taxes, and availment of a letter of credit.
A Packing List is a detailed description of every item on the commercial invoice, specifying
the manner in which the item is packaged, as well as the marks, or numbering on the package.

4) What is a Clause Paramount?

A clause paramount is a choice of law clause under the Hague Rules and the Hague-Visby
Rules. The Hague Rules and the Hague-Visby Rules, cannot be made applicable unless the
Bill of Lading specifically incorporates them. IF incorporated correctly through the Bill of
Lading, these rules can override domestic law.

5) What are the three exceptions to carriers liability under the Hague Rules
Article 5 details 3 exceptions to carrier’s liability - Live animals, Deviation, and Fire.

6) What is a ‘DAP’ Contract?

DAP is a delivery at place contract, where the cost of the entire transit is borne by the seller,
and risk is transferred to the buyer only after delivery at the named place. However, the buyer
is responsible for the customs and import duties.

7) What is the primary difference between ‘E’ and ‘F’ incoterms, and ‘C’ and ‘D’
incoterms vis-a-vis the liability of the buyer and seller?
In ‘E’ and ‘F’ incoterms, the buyer bears the liability of the carriage, whereas in ‘C’ and ‘D’
incoterms the seller bears the liability of the carriage.

8) What are the duties imposed on the carrier under Article 3 of the Hague Rules?
⮚ Make the ship seaworthy;

⮚ Man, equip, and supply the ship properly; and

⮚ Make the parts of the ship where goods are stored fit for carriage.

9) Which Act governs carriage of goods by sea in India?

The Carriage of Goods by Sea Act, 1925

10) What is the difference between a Bill of Lading and a SeaWay Bill?
Both deal with carriage of goods by sea, but a Bill of Lading is a document of title whereas a
SeaWay Bill is merely a receipt, and proof of the contract of carriage.

Unit 3

1) What are the advantages of CTF payments

✔ Seller retains control over goods until they are sold, reducing the risk of loss or theft.

✔ Allows buyer to sell goods without having to invest in inventory

2) Explain the purpose of a ‘Stand By’ Letter of Credit

A Stand By letter of credit acts like a bank guarantee. It can only be availed of in the event of
a breach of contract, or any other such additional conditions, as specified in the letter of credit
itself.

3) What is a Back to Back Letter of Credit

A Back to Back Letter of Credit is issued by the seller’s bank against the original letter of
credit, for an amount lower than the original letter of credit, in order to enable the seller to
pay a third party, usually for materials or services provided.

4) When is payment due on a Usance Letter of Credit

Payment on a Usance Letter of Credit is due on maturity, an not on complying presentment.
The date of maturity is specified in the letter of credit itself.

5) What are the exceptions that can be claimed by the Bank to deny payment on a
complying presentation
Fraud, Total Failure of Contract, and Illegality

6) Article 14 of UCP 600 sets the standard for examination of documents. What is this
standard?
Article 14 applies the Doctrine of Strict Compliance

7) What is a Red Clause Letter of Credit?

It is a Letter of Credit that allows the beneficiary to avail part of the credit prior to shipment
from the negotiating bank. The clause is inked in red, hence the name.

8) What is Article 15 of UCP 600?

If a complying presentation is made, the confirming bank is bound to honour the Letter of
Credit, and forward the documents to the issuing bank.

9) Which Article of UCP 600 defines ‘Hold Notice’ and ‘Return Notice’?
Article 16

10) What is Article 10 of UCP 600?

Article 10 lays down the procedure for Amendments to the Letter of Credit. It requires both
notice of amendment, and acceptance of the amendment, to be made in writing.

Unit 4

1) What are two benefits of an institutional arbitration?

✔ Administrative Assistance from the Institution

✔ Establised Rules of Procedure for Conduct of Arbitration

✔ Impartiality of Tribunal Guaranteed

✔ Pre-framed Arbitration clause

2) Under what conventions are foreign awards recognised in India?

The Geneva Convention of 1927 and the New York Convention of 1958

3) Section 16 of the Arbitration and Conciliation Act, 1996 embodies what principle?
The Kompetenez-Kompetenez Principle

4) Differentiate between ‘seat’ and ‘venue’ of arbitration

Seat of Arbitration is used to denote the procedural law that will be made applicable to the
arbitration whereas venue is the actual location where the arbitral proceedings are conducted,
and has no impact on the laws applicable to the arbitration. The two may, but need not
always, be the same.

5) What is an investment dispute? Which international organisation deals primarily with

such disputes?
It is a dispute between a non-State/Private investor, and a State Party.
Arbitrations and Conciliations of investment disputes are conducted by the International
Centre for Settlement of Investment Disputes (ICSID).

6) Define Mediation
Mediation is a voluntary process whereby a neutral third party facilitates negotiations
between the parties to a dispute to help them find a consensual outcome. The process is
flexible, rarely public, and interest-based, as the mediator will when proposing a settlement,
not only take into account the party's legal positions but also their; commercial, financial
and/or personal interests.

7) What are the types of Arbitrations conducted by the PCA (Permanent Court of
Arbitration?
⮚ Arbitrations between States,

⮚ Between a State Party and a Private Investor,

⮚ Commercial disputes between two private parties

8) What are the two organs of the ICSID?

⮚ The Administrative Council

⮚ The Secretariat

9) What are the two organs of the PCA?

⮚ International Bureau

⮚ Administrative Council

10) Which Section of the Arbitration and Conciliation Act, 1996 lays down the grounds
for overturning an award?
⮚ Section 34 - Domestic Awards

⮚ Sections 48 and 57 - Foreign Awards