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TACN4 > Q&A Chapter 1 > Flashcards

Q&A Chapter 1 Flashcards

1
Q

What are 5 steps in negotiating delivery ?

A
  • Timing: date of delivery, delay & results of delay
  • Location: place of delivery and alternatives
  • Transportation: modes of transportation to be used
  • Risk, title & insurance: transfer of risk, transfer of ownership & insurance
  • Terms: Incoterms to be used
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2
Q

When must delivery take place ? (optional)

A

It ups to delivery terms
- The date of dispatch from the factory ( thời gian giao nhận từ nhà máy)
- The date of loading onto a ship ( ngày chất hàng lên tàu )
- The date when the goods should arrive in destination ( ngày hàng tới cảng đích )

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3
Q

What is the place of delivery ?

A
  • Delivery is the point at which risk passes from the seller to the buyer
  • Delivery may take place at any agreed point among the transportation route
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4
Q

Why is the place of delivery important ?

A
  • Control & responsibility go together
  • The date of payment depends on the place and time of delivery
  • Risk and ownership often pass at the place of delivery
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5
Q

What might be the place of delivery?

A
  • Place of delivery is the point at which the exporter passes responsibility for the goods to the Buyer.
  • Delivery can take place at a number of places between manufacturer’s factory and the Buyer’s warehouse.
    + When the goods are handed over to the carrier.(giao hàng tại xưởng)
    + When the goods are shipped on board in the exporter’s country.
    + When the goods are off-loaded in the buyer’s country. (cảng đích)
    + When the goods arrive at the buyer’s warehouse. (nhà kho người nhận)
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6
Q

Why is transportation important ?

A
  • Because we have to find the appropriate cost and type of transport, have to think of freight, try to minimize the freight and try to find the best mode of transport.
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7
Q

What are modes of transportation?

A
  • Inland transportation: by road,rail,barge ( xà lan), mail, or by mixture (phương thức vận tải liên hợp)
  • Overseas transport: air, sea, …
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8
Q

Where is the risk often passed from the exporter to the importer?

A
  • At the point of delivery
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9
Q

Where does transfer of ownership take place?

A
  • Can take place at any point between signature of contract and final payment for the goods.
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10
Q

How many kinds of delay in delivery?

A
  • Excusable delay (sự chậm trễ miễn trách)
  • Non-excusable delay (sự chậm trễ không được miễn trách)
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11
Q

What events does delivery date trigger?

A

The delivery date triggers many contract events:
- The exporter must complete primary duties under the contract
- Payment becomes due
- Risk and title pass to the buyer
- Exporters must pay compensation to the buyer in case of late delivery.

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12
Q

How to fix delivery date?

A
  • The date of delivery may be a simple CALENDAR date
  • If approvals or certificates are required, the contract may have two starting dates: the date of SIGNATURE and the date of COMING 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 DELIVERY.
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13
Q

When does the contract come into force?

A

After all the preconditions have been met.

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14
Q

When is a contract binding?

A

After the signature date ( date of execution )

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15
Q

When is a contract binding and effective?

A

After the date of coming into force

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16
Q

In what kind of contract is a cut-off date set?

A

A cut-off date is set in fixed-price contracts because if the contract does not come into force for quite a long time, the price will be unrealistic.

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17
Q

How does the date of coming into effect the delivery date?

A

The delivery date is normally fixed for a certain number of days after the date of coming into force.

18
Q

What is excused delay?

A

Excused delay is in the grace period and due to force majeure.

19
Q

What is the grace period?

A

It is from the delivery date to the beginning of penalty period.

20
Q

What is the grace period used for?

A

It is used to facilitate early delivery.

21
Q

What are the 3 outcomes of FM?

A

Resumption of delivery.
Termination of contract (if the force majeure events continue too long).
Unclear and dangerous situation.

22
Q

What are the two remedies given to the Buyer for any unexcused delay?

A
  • The court may order the exporter to fulfill his obligations, this means issuing a decree of specific performance requiring the exporter to make delivery as agreed.
  • The court may require the exporter to pay the buyer compensatory damages - a sum of money that will fully and adequately compensate the buyer for any measurable loss.
23
Q

Which law prefers to award damages?

A

Common law countries.

24
Q

Which law enforces performance?

A

Civil law countries.

25
Q

What are liquidated damages?

A

They are a fair figure, a lump sum to be paid per day (week or month) of late delivery. The compensation fixed in advance is called liquidated damages.

26
Q

What are penalties?

A

They are damages to be paid to compensate one party for a loss.

27
Q

Explain the differences between liquidated damages and penalties

A

Liquidated damages:
Motive: To compensate the buyer fairly for any delay in delivery.
Enforceable everywhere but subject to increase or decrease in some legal systems.
Penalties:
Motive: To terrorize the exporter into punctual delivery.
Not enforceable in English law or other common law systems.

28
Q

What is quasi-indemnity?

A

Motive: To relieve the exporter of liability for delay in delivery.
Enforceable everywhere but open to challenge as ‘unconscionable’.

29
Q

Name types of Insurance policy?

A
  • Tailor-made policy
    Based on the description of insured ship, goods or insured subject matter
  • Floating Policy (Hợp đồng bảo hiểm thả nổi)
  • Open cover (Hợp đồng bảo hiểm nhiều chuyến )
    Based on the value of the insured subject matter
  • Valued policy (Hợp đồng bảo hiểm định giá )
  • Unvalued policy (Hợp đồng bảo hiểm không định giá )
    Based on time period
  • Voyage Policy (Hợp đồng bảo hiểm chuyến)
  • Time Policy (Hợp đồng bảo hiểm thời hạn)
30
Q

What notation must a Marine Bill of Lading bear?

A

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 named vessel.

31
Q

How can a marine bill of lading be made into a negotiable document?

A

Typing the word ‘Order’ in the Consignee box. The shipper must endorse the bill (sign it on the back).

32
Q

What are clean shipping documents?

A

There are no notes/free of notes about defects, the goods are in perfect condition.

33
Q

What aspects of the goods does the carrier (the transportation company) inspect?

A

The carrier does not inspect the goods themselves, but their packaging and general appearance.

34
Q

What defects does the carrier note on the face of the bill of lading or other shipping documents?

A

If anything is wrong, the carrier notes the deficiency on the face of the bill of lading or other shipping documents.

35
Q

Which player (exporter or buyer) is responsible for arranging insurance cover?

A

In deciding who should insure, there are 2 schools of thought.
The first sees the point of delivery as decisive: up to delivery the exporter insures, after delivery the buyer insures.
The second approach lies behind C-terms (CIF, CIP): it is often easier for the exporter to arrange insurance.

36
Q

What does a Marine Insurance policy cover?

A

A marine insurance policy has three variant clauses: Cargo Clause A, B and C.
Clause A covers anything not excluded.
Clauses B and C exclude anything not expressly covered.

37
Q

What are 3 variables taken into account when setting up the 13 terms?

A

Where along the transportation route delivery takes place.
What means of transportation is used.
What costs the exporter might pay after the point of delivery.

38
Q

Identify 4 categories in which the 13 terms are grouped?

A

The E-term deals with deliveries at the exporter’s factory.
The F-terms all concern delivery within the exporter’s country.
The C-terms involve delivery in the exporter’s country, with extra cost for the exporter after delivery.
The D-terms take care of delivery outside the exporter’s country.

39
Q

What are main functions of ocean BL?

A

A contract for delivery of the goods.
A document of title to the goods.
A receipt for the goods.

40
Q

Name some features of liquidated damages?

A

The sum is fixed in advance with the agreement of the parties related the sum is fair the objective is to compensate there is always a maximum for the sum.

41
Q

Name some features of penalties?

A

The sum is fixed in advance with the agreement of the parties related the sum is big
the objective is to punish
the sum is subject to actual loss.

42
Q

What is the importance of a well-designed set of specifications?

A

Protect the seller and buyer

TACN4 (8 decks)

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