Lesson 1: Introduction to English Contract Law and Sales Contracts

Question 1

The Contracts

Answer 1

1. The Sales Contract: between seller and buyer, setting terms and obligations for payment and delivery.
2. The Payment Contract: entail that documents that are representing the goods are transferred against payment.
3. The Carriage Contract: between the transport of the goods and other parties.
4. The Dispute Resolution contract: to handle disputes

Question 2

INCOTERMS

Answer 2

• Pre-defined commercial contracts
• Clarifies which party is responsible for the tasks, costs and risks related to the transportation of the goods.
• By agreeing to an INCOTERM the parties reduce misunderstandings

Question 3

FOB

Answer 3

Free On Board: Risk and costs are passed to buyer when the goods are delivered and loaded to the ship.

Question 4

CIF

Answer 4

Cost Insurance and Freight: the seller is responsible for cost insurance and freight till por of destination. The risks are passed to the buyer when goods are on board.

Question 5

Contract terms can either be…

Answer 5

Condition: Vitally important that it has to be performed
Warranties: Is like a promise or guarantee, not as powerful as condition
Innominate terms: Between the two, is not yet classified.

Question 6

Avery vs Bowden Case

Answer 6

Example of Frustration, the ship couldn’t perform it’s contract since the government made it illegal to load cargo at enemy port. Hence discharged.

Question 7

Donoghue v. Stevenson Case

Answer 7

Privity of contract means third-parties are not involved in the contract cannot claim damages however like in Donoghue v. Stevenson case it was able for negligence and duty of care was form.

Question 8

Types of Tort

Answer 8

• Intentional Tort
• Strict Liability Tort
• Negligence Tort

Question 9

4 Elements of Negligence Tort

Answer 9

• The negligent party owed a duty of care to the victim
• Breach of duty of care
• Causation of damage
• Damage occurred