2.1 The formation and Performance of Contracts for the Sale of Goods

Question 1

Universally recognized as the legal mechanism for conducting trade in goods.
It embodies the agreement of the parties, the buyer and seller.
It allows buyers and sellers to agree on all essential terms of the contract understand their prevailing rights and obligations.

Answer 1

Sales Contract

Question 2

An important factor to keep in mind is to determine the influence of culture upon contract negotiations.

Answer 2

Cultural Influences on Contract Negotiations

Question 3

Generally it is a body of law that governs contracts for the present or future sale of goods.

Generally does not apply to contracts for the sale of real estate or intangibles, such as stocks, bonds, patents, copyrights and trademarks.

Answer 3

The Law of Sales (Sales Law)

Question 4

means a transfer of the ownership and possession of tangible goods from seller to buyer in return for a price or monetary payment.

Answer 4

Sale

Question 5

Origin of Modern (Sales Law

Answer 5

-The Law Merchant and English Sales Law
-The US Uniform Commercial Code
-National Differences in Sales Law
-The Unification of Sales Law

Question 6

in the century, Medieval Europe experienced a renaissance of trade and commerce.

Answer 6

The Law Merchant and English Sales Law

Question 7

covers areas of commercial law, including bank deposits and negotiable instruments as well as the sale of goods, and makes the law uniform throughout US.

Answer 7

The US Uniform Commercial Code

Question 8

Presents the different legal systems of a nation.

Answer 8

National Differences in Sales Law

Question 9

The process of making national laws more uniform. Thus, Convention on Contracts for the International Sale of Goods has been made.

Answer 9

The Unification of Sales Law

Question 10

-it was ratified by the U.S Senate and became effective in the United States in 1988.
-It is effective for trade within North America as it has also been ratified by Canada and Mexico.

Answer 10

Convention on Contracts for International Sale of Goods

Question 11

is an agreement that contains all the essential elements and meets all the requirements of a binding contract, including:
(a) Agreement between parties entered by mutual assent that result for bounding intention.
(b) supported by consideration

Answer 11

Valid contract

Question 12

is of no legal effect and will not be enforced by the court.

Answer 12

Void Agreement

Question 13

a contract for the international sale of goods need not be concluded in or evidenced by writing and is not subject to any other requirement as to form.

Answer 13

CISG Article 11

Question 14

is a written document or documents that evidence the final and complete agreement of the parties.

Answer 14

Integrated Contract

Question 15

Mutual Assent: The Offer Stipulations

Answer 15

The Intention to be Bound
Public Offers
Open Price terms
Firm Offers
The Pro Forma Invoice

Question 16

a communication between the parties is considered an offer when (1) it is a proposal for concluding a contract and (2) it is sufficiently definite and indicates the intention of the offeror to be bound.

Answer 16

Article 14 of the CISG

Question 17

Is a formal document addresses to a specified buyer to sell the products described according to certain terms and conditions.

Answer 17

Pro forma Invoice

Question 18

is the offeree’s manifestation of the intention to be bound to the terms of the offer.

Answer 18

The Acceptance

Question 19

Under the common law, a contract is formed when the acceptance is dispatched by the offeree. In the case of an acceptance by letter or written document, the time of dispatch is the time the letter is put into the hands of postal authorities, courier service or other carrier.

Answer 19

When an Acceptance is effective

Question 20

The rule requires that an offeree respond to an offer with an acceptance that is definite and unconditional and that matches the terms of the offer exactly and unequivocally.

Answer 20

The Mirror Image Rule

Question 21

Includes the description of the quantity of the goods ordered, a delivery address and authorized buyer’s signature.

Answer 21

Purchase Order

Question 22

Is the seller’s formal confirmation of the buyers order, either accepting the order, rejecting it, or modifying its terms.

Answer 22

Order Confirmation ( Sales Acknowledgement)

Question 23

Presents the limitations of the client’s liability by placing greater responsibility on the other party.

Answer 23

Terms and Conditions

Question 24

The seller must deliver goods and description required by the contract and which are contained or packaged in the manner required by the contract”

Answer 24

Article 35 states

Question 25

The primary responsibility of the seller is to deliver conforming goods.

Answer 25

Performance of the Seller

Question 26

The buyer has the obligation to inspect the goods and notify the seller of any nonconformity.

Answer 26

Performance of the Buyer

Question 27

Remedies for Breach of Contracts

Answer 27

-Avoidance or cancellation of the contract
-The setting of an additional extension, for performance
-Price reduction
-Money damages
-The right to remedy or cure

Question 28

Excuses for Non Performance

Answer 28

-Impossibility of Performance
-Frustration of Purpose
-Commercial Impracticability
-Avoiding Performance Disputes Majeure)