Gap filling Chapter 1 Flashcards
Ex 1 How to fix the date of delivery
- The date of delivery may be a simple …. date
- If approvals or certificates are required, the contract may have two starting dates: the date of …. and the date of …. into force; delivery is fixed for a number of days after coming into force.
- if the contract has not come into force by a certain date - no ….
CALENDAR
SIGNATURE
COMING
DELIVERY
Ex 2 What is the place of delivery
- Delivery is the point at ….. Passes from the seller to the buyer
- Delivery may take place at any agreed …. Along the transportation route
WHICH RISK
POINTS
Ex 3 Incoterms allow the contract to start the place of delivery simply
- Delivery of the Goods shall be … FOB (Mombasa)
- For F-terms and C-terms this is the place of ….
- A common …. Allows the seller to the deliver under an FOB contract even if the importer’s ship ….To arrive. The seller delivers instead to a …. warehouse at the ….
MADE
SHIPMENT
MODIFICATION
FAILS
BOUNDED
- Failure to perform by one side allows the other to seek a …. remedy
- Courts in Continental (civil) law countries order …. first, with ….
If performance is impossible (as in the case of late delivery) - Courts in Anglo-American (common) law countries ….. Damages first with specific …. only if an award of ….. Does not fully …. The situation
LEGAL
PERFORMANCE
DAMAGES
AWARD
SPECIFIC
DAMAGES
CORRECT
Figure for ……. damages may be ……. before loss occurs, or ….. a ….. sum fixed before loss occurs is payable as ……
COMPENSATORY
FIXED
AFTERWARDS
PRE-CALCULATED
LIQUIDATED DAMAGES
- If the parties must wait for the contract to become ………, the delivery date often ……….. on the …… of coming into force
EFFECTIVE
DEPENDS
DATE
- Some contracts (especially fixed-price contracts) set a ……… Date after which the contract cannot come into ………
CUT-OFF
FORCE
- A ……. period is sometimes used to …….. Early delivery
GRACE
FACILITATE
- Sometimes delay in delivery is caused by a ……… event,i.e, an event beyond the control of the exporter.
FORCE MAJEURE
- A force majeure clause often ……….. The exporter of his ………. To deliver until the force majeure event is over
RELIEVES
- If the force majeure event continues for too long, both parties should have the the right to ……… The contract
TERMINATE
- Late delivery causes loss to the buyer - loss that must be …….
COMPENSATED
To avoid the cost and ……….. Of legal ………………, many contracts …………… In advance the ………. For late delivery
UNCERTAINTY
PROCEEDINGS
REGULATE
COMPENSATION
Many export contracts cannot “come into force” (become effective) until certain ……………… (for example, government approvals) are met.
PRECONDITIONS
Loss caused by late delivery is not easily quantified, so ………….. Compensation is normal. The lump-sum may be set too high (…………), about right (………..), or too low (………………) The motive behind the penalty is to ……………… One party into full performance.
LUMP-SUM
PENALTY
LIQUIDATED DAMAGES
QUASI-INDEMNITY
TERRORIZE
A ……. is not enforceable in Anglo-American courts, though the quasi indemnity is usually ……..
PENALTY
ENFORCED
The contract should……………………. the type of packaging and the shipping marks agreed by the parties.
SPECIFY
On delivery, the exporter receives from the carrier the most important of all the……………………. documents, the bill of lading (or consignment note).
SHIPPING
Each mode of transport has a ………………….. shipping document: the marine bill of lading, the air waybill, the rail consignment note, and the road consignment note are the most common. Combined transport (container transport) uses a combined transport bill of lading.
CHARACTERISTIC
The marine bill of lading, to be acceptable as a shipping document under a letter of credit, must bear the notation that the goods have been shipped on board a……………………. vessel.
NAMED
“Payment under a letter of credit depends largely on the……………………. of the shipping documents.”
CORRECTNESS
Payment under a letter of credit may be delayed if the letter of credit repeats exactly the contractual packaging requirements but the exporter has……………………. to meet them.
FAILED
“8. The carrier will note any ………………….. in the packaging, weight or general appearance of the goods on accepting them from the exporter. (The carrier does not inspect the goods themselves, only the packaging.)”
DEFECTS
“In CIF and CIP contracts, the exporter must pay for insurance from
……………………..to the named point of arrival.”
PORT OF DELIVERY
The insured can make three kinds of arrangement with the insurer: the tailor-made policy,……………………. and the open cover.
THE FLOATING POLICY
The main principle of insurance is …………………..
UTMOST GOOD FAITH
“A……………………. has three variant clauses: Cargo Clauses A, B and C.
Clause A covers anything not excluded; clauses B and C exclude anything not expressedly covered.”
MARINE
A “held covered” clause offers some protection against …………………..
MISDECRIPTION
……………..issues Incoterms to standardize delivery procedures.
ICC
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
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.
DATE
Property,legal or………………1 in any goods supplied by the seller shall …. To the buyer only when the seller has received …. Payment for all … then …. By the buyer to the ….
Goods in respect of which ….. Has remained with the seller shall be kept ….. As those of the seller, and the buyer shall at its ….. Immediately return such goods to the seller, or …. The seller enters into the buyers ….. To collect such goods …… the seller so request
Ownership of goods in a foreign country is often of no …… value; therefore; many contracts stipulate: Title to the goods shall pass with …..
PRACTICAL
RISK
The seller usually insures up to the point of ……. ; the buyer …….
DELIVERY
THEREAFTER
Under CIF and CIP contracts, the seller must pay insurance from point of delivery to an agreed ….. .This insurance(under Incoterms)is minimum ……. CargoClauseC-unless the parties agree OTHERWISE
DESTINATION
COVERAGE
Although the seller pays for insurance ; the risk is entirely the …..
BUYER
Delivery of the Goods shall be made <INCOTERM>. The ....................... 9 date of Delivery shall be <DATE>. Risk and ................... 10 to the Goods shall pass from the SELLER to the BUYER on ........................ 11</DATE></INCOTERM>
SCHEDULED
TITLE
DELIVERY
