COMMERCIAL PRACTICE L4 - Drafting th e

Question 1

What are the issues that demand particular consideration regarding international sale of goods? (4)

Answer 1

Jurisdiction, governing law, delivery and payment.

Question 2

What does the seller/buyer risk (in terms of payment) when there is an international sale of goods contract? (2)

Answer 2

The seller risks delivering the goods before the buyer pays or the buyer risks paying for the goods before it receives them. This risk is of greater concern since the time delay and distances between the parties are increased.

Question 3

Why may parties use a letter of credit? (1)

Answer 3

To balance the risk between the parties that the goods are paid for but not delivered (or vice versa.)