GAP FILLING Flashcards
1
delivery is the point at which ___ passes from the seller to the buyer.
RISK
Delivery may take place at any agreed ___ along the transportation route
POINTS
Incoterms allow the contract to state the place of delivery simply: delivery of
the goods shall be made ___ (mombasa).
FOB
For F-terms and C-terms this is the place of ___.
SHIPMENT
A common modification allows the seller to deliver under an FOB contract
even if the importer’s ship ___ to arrive. The seller delivers instead to a ___ warehouse at the ___.
FAILS
BONDED
DOCKS
delay normally ___ to the buyer.
DAMAGES
the seller must ___ for any such loss.
COMPENSATE
the duty to compensate may be excused if the contract contains a ___.
FORCE MAJEURE
Failure to perform by one side allows the other sides to seek a ___
remedy.
LEGAL
Courts in continental (civil) law countries order ___ first, with
damages if performance is impossible (as in the case of late delivery).
PERFORMANCE
Courts in anglo-american (common) law countries ___
first with specific performance only if an award does not fully correct the situation.
ORDER PERFORMANCE
a figure for ___ damages may be fixed before loss occurs, or afterwards a ___ sum fixed before loss occurs is payable as liquidated damages.
COMPENSATORY
PRECALCULATED
liquidated damages are typically ___ for delay in delivery.
PAID
If the parties must wait for the contract to become ___, the delivery date often depends on the date of coming into force.
effective
Some contracts (especially fixed-price contracts) set a ___ date after which the contract cannot come into force.
cut-off
A grace period is sometimes used to ___ early delivery.
Sometimes delay in delivery is caused by a ___ event, i.e., an event beyond the control of the exporter.
facilitate
force majeure
A force majeure clause often ___ the exporter of his duty to deliver until the force majeure event is over.
relieves
If the force Majeure event continues for too long, both parties should have the right to ___ the contract,
terminate
Late delivery causes loss to the buyer-loss that must be ___. To avoid the cost and uncertainty of legal proceedings, many contracts regulate in advance the ___ for late delivery.
compensated
compensation
Many export contracts cannot “come into force” (become effective) until certain ___ (for example, government approvals) are met
preconditions
A loss caused by late delivery is not easily quantified, so lump-sum compensation is normal. The lump-sum may be set too high (___), about right (liquidated damages), or too low (quasi-indemnity). The motive behind the penalty is to force (“___”) one party into full performance.
penalty
terrorize
A penalty is not enforceable in Anglo-American courts, though the quasiindemnity is usually ___.
enforced
The place (and time) of delivery must be unambiguously agreed because many contract events (including payment and transfer of risk and title) are ___ to delivery.
tied
The place of delivery should not be confused with the ___ of the goods.
destination
Delivery of goods under most___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.
export
CIF and CIP contracts are especially confusing since they name the point of destination, e.g., CIF (Lagos). Lagos, in this example, is the point to which the exporter is responsible for costs, not the ___ of delivery.
place
Ownership of goods in a foreign country is often of no practical value; therefore; many contract stipulate: Title to the goods shall ___ with risk,.
pass
The seller usually insures up to the___ of delivery; the buyer thereafter.
point
Under CIF and CIP contracts, the seller must pay insurance from the point of delivery to an agreed destination. This insurance (under Incoterms) is minimum ___ clause C -unless the parties agree otherwise.
coverage-Cargo
Although the Seller pays for ___; the risk is entirely the Buyer’s
insurance
Delivery of the goods shall be made . The ___ date of delivery shall pass from the Seller to the Buyer on delivery.
scheduled
in negotiating price and payment, exporters should___ a price that relates to the complete set of contract terms.
QUOTE
As items in the contract are negotiated, the exporter should assess the influence of each factor on price and ___ the price accordingly.
ADJUST
Payment should be negotiated so that the exporter secures ___, and correct payment.
PROMPT
Payment on ___ is often timed so that early payment secure a discount for the buyer, this benefits the exporter by improving cashflow.
OPEN ACCOUNT
The exporter prefers the place of payment to be his own bank account,
payment is not deemed to be made until the money is at his ___.
DISPOSAL
For the seller, the most favourable method of payment is the AT SIGHT
CONFIRMED ___ L/C; for the importer, EXPORT ___ INSURANCE is most favourable.
IRREVOCABLE
CREDIT
Terms os payment are a key factor in setting ___
PRICE
Delay in payment is always ___ for the seller
EXPENSIVE
A DISCOUNT for ___ settlement can speed up payment
EARLY
Export credit insurance (if available) allow the exporter to recover the cost of goods exported but not paid for ___is not covered.
benefit
This insurance allow the exporter to trade on open account which can be a useful ___ point.
selling
Under a payment guarantee, the bank ___ to pay the exporter if the buyer fails to pay.
promises
Bank guarantee are expensive to ___ and are not common in normal export agreements in the developing world.
set up
Bank guarantee are also used in other situation: to secure an offer (bid bond); to secure an ___payment; to secure correct payment.
advance
A letter of credit is a contract between the ___ bank and seller.
issuing
It is a promise by the bank to pay a sum of money to the seller when the seller present a given set of ___ in good order.
document
Because it allows payment to be made immediately after ___ in the seller own country, it is the most popular means of payment.
delivery
The ___ rights and duties of the parties are clearly laid down in the UCP (uniform customs and practice for documentary credits.)
legal
A guaranty is a three-sided arrangement usually (1) a bank
involving
Principal (Seller or buyer) makes a (2) to the beneficiary (the Buyer or Seller)
promise
Principal ask the Guarantor (a bank, insurance company) to issue a (3)
guarantee
The guarantor (a bank) promises to pay (4) to the Beneficiary if the principal breaks his (5)
money
premises.
A warranty is a (6) arrangement ussually involving only the buyer and the seller.
two-sided
