Question 1 (5 marks):

Company ABC (Vietnam) agreed to sell XYZ (France) 1000 tons of cashew nuts at US$
1500 /ton CIF Marseille Port (Incoterms 2020). Each bag is 50 kg net weight, delivered
in container at Sai Gon port. Delivery deadline is before December 2022. Payment is
made by documentary credit method (irrevocable L/C at sight).
As an exporter, draft the following terms: the name of the goods; Quantity; Quality;
Price; Packaging and marking; Delivery; Payment; Penalty for Contract breach;
Arbitration of the said contract so that the two parties can accept and sign the contract.
Note: Students set reasonable assumptions for the test, correct the unreasonable
information of the test (if any) to draft the terms of the contract.
Answer:
1. The name of goods
 Lack of origin, manufacturing year, scientific name
 VietNam Cashew Nuts, crop in 2021
2. Quantity
 Lack of tolenrance rate, should add information like “At the seller options”
 1000 tons ± 5% At seller’s options.
3. Quality

Phân vân 2 cách:

Cách 1:

 Lack of standard of goods

 Quality: TCVN 4850 – 2010

Cách 2:

 Lack of quality specifications: beans size, moisture, broken, crop…

 + Broken: 5% max
+ Moisture: 15% max
+ Beans size > 25 mm: 90% min
+ Crop: Spring summer 2021
4. Price
 Lack of total amout, say inwords
 Price: Unit price: US$ 1500/ton CIF Marseille Port Incoterm 2020
Total amout: US$ 1,500,000 ± 5%
Say inwords: One million five hundred thousands.
5. Packing and marking
 Lack of materials for packing, such as: pp, jute, bag; number of layers and their
composition; packing dimension; hook, edge, dunnage; lack of gross weight (là
trọng lượng tính cả cái túi)
 PACKING: Packed in uniform new single polypro bags of 50kgs net weight with
tare weight of 150 grs each, double machine sewn at the mouth strong and suitable
for the export.
SHIPPING MARK:
+ Cashew nuts crop in 2021
+ Made in VietNam
+ Net weight: 50kgs
+ Gross weight: 50.150 kgs
+ Use no hooks
One side printed in green color.
6. Delivery
 Lack of place of delivery (POL, POD); type of delivery, notice of delivery.
 Delivery: 1st October 2022 – 31st November 2022, both dates inclusive, with
minimum 10 days pre – advice for the vessel’s ETA loadport, partical shipment or
part – cargo shipment allowed at seller’s options.
7. Payment
 Lack of payment period; payment value; payment document (must show document
name, number of original, number of copy, name of state authority who issue
document, necessary note in each document)
 Lack of L/C opening date, L/C expiry day, L/C validity, L/C date location to
present payment document.
PAYMENT: By Irrevocable L/C at sight 100% invoice value to the seller’s account,
No …STK…. at Vietcombank Ho Chi Minh city branch.

+ Issuing bank: Marseille Bank

+ Advising bank: Vietcombank, HCM city Branch.

+ Date of issued: within 7 days from the signing date of this contract.

+ Date and place of expiry: 31st November 2022 in Marseille.

+ Period for presentation: within 21 days after B/L date but within the validity of the
credit.

+ Document required:

- Signed commercial invoice in triplicate.

- 2/2 Full set of originals clean B/L on board made out to order of Marseille Bank
and notify the Buyer.
- One (1) original and two (2) copies Certificate of Quantity, Weight, Quality issued
by Vinacontrol.
- One (1) original and two (2) copies Phytosantitary Certificate issued by Plant
Protection Deparment – Vietnam.
- One (1) original and two (2) copies Certificate of Fumigation issued by Vietnam
Fumigation Company.
- Packing list in triplicate.
- Certificate of vessel’s Hatch cleanliness issued by Vinacontrol.
- Beneficiary’s Certificate that one full set of non – negotiable shipping documents
have been sent by DHL to the buyer.
- Bill of exchange at 60 days sight.
8. Penalty
 Lack of scope, measures, content of the penalty term
 PENALTY: In case of failure in opening L/C or making delivery in due time as
stipulated in this contract, except the reason of force majeure, the penalty for delayed
delivery or delayed L/C opening shall be counted based on the rate of 1% of the
contract value per delayed day.

9. Arbitration
 Lack of article includes contents as follow:
+ Types of arbitration
+ Application law
+ Arbitrator’s decision
+ Term
ARBITRATION: Any dispute arising out of or in relation with this contract shall
be resolved by arbitration at the Vietnam International Arbitration Centre (VIAC)
in accordance with its Rules of Arbitration. The arbitration fee will be suffered by
lost party.

Question 2 (5 marks): Answer the following questions and explain your answers
Please study the following situation and select appropriate Incoterms 2020. The seller in
Binh Duong (Vietnam), port of loading is Cat Lai port of HCM City, buyer in
Philippines, port of discharge (cảng trung chuyển or cảng đích) is Manila port. The
commodity is 10,000 tons of rice.
a. Case 1: The seller hires the main means of transport, pays the freight, pays insurance
for the goods. Risks are transferred since the goods are on board. (1 mark)
 CIF Manila port, Incoterms 2020
b. Case 2: The purchaser does not agree with the conditions stated in the above
mentioned case but asks the seller to load the goods onto the ship that is nominated by the
buyer, then the seller completes the export procedures. (1 mark)
 FOB Cat Lai port, Incoterm 2020
c. Case 3: The seller requests that after helping the buyer make the export procedures at
the expense of the buyer, the seller fulfills his obligation after delivery of the goods at the
warehouse. (1 mark)
 DDP Philippines ,Incoterm 2020
d. Case 4: The seller, after carrying out the export procedures, shall deliver the goods to
the carrier at the wharf (cầu cảng) in the port of loading in order to fulfil his obligation. (1
mark)
 FAS Cat Lai port of HCM city, Incoterm 2020
e. Case 5: The seller delivers the goods to the carrier at the CFS (Container Freight
Station) port of Cat Lai and does customs clearance. The buyer rents the main means of
transport and buys insurance for the goods. (1 mark)
 FCA Cat Lai, Incoterm 2020