Week 5

Question 1

Main characteristics of International Sale of Goods

Answer 1

Long distances

String sales = continous sale of the same goods
Repeated transactions

High transport costs & time
Try to avoid nullity / sending back goods: favor contractus

Question 2

CISG

Answer 2

**uniform law on obligational aspects
**
Limited to (some aspects of) international business sales
- Tangible movable goods, including gaz

This Convention applies to contracts of sale of goods

Question 3

Tailor made software is a

Answer 3

service, not a good

Question 4

CISG does not apply to

Answer 4

1. Goods bought for personal, family or household use
   - Domestic consumer-protection laws are not affected by the CISG
2. On execution or otherwise by authority of law
   E.g. enforced sales
3. Of stocks, shares, investment securities, negotiable instruments or money
   MiFID
4. Of ships, vessels, hovercraft or aircraft

Question 5

Place of business

Answer 5

It must be a place at which there is a stable business organization

If multiple places - we choose the one with the closest connection

Question 6

Items covered by CISG

Answer 6

1. Law of obligations:

Not regulated however: price revision; interest rates

2. No rules relating to the validity of contracts, except for:
   - No specific writing requirements
   - Validity of open price contracts

Question 7

Items covered by CISG

Answer 7

• Formation of contract
• Performance (rights & obligations of the parties)
• Non-performance & related questions

Question 8

When is the offer effective

Answer 8

When it reaches the offeree

Question 9

Revocation, withdrawal

Answer 9

An offer, even if it is irrevocable, may be withdrawn if the withdrawal reaches the offeree before or at the same time as the offer

Question 10

When can acceptance be withdrawn?

Answer 10

Before it becomes effective

Question 11

When does an acceptance becomes effective?

Answer 11

At the moment the indication of assent reaches the offeror.

Question 12

What modifying offer means for contract?

Answer 12

Counter offer

Question 13

Seller’s obligations

Answer 13

Delivery of the goods
- when transfered to the first carrier (port of new york, not final destination)

Transfer of property
- Fixed date
- Fixed period of time
- Reasonable

Deliver goods in conformity with the contract
If not - can be refused

Question 14

When risk for the buyer passes?

Answer 14

Contract
Moment of delivery

Question 15

Buyer’s obligations

Answer 15

• Take delivery
• Payment of the purchase price
• Examine the goods within a reasonable time
• Give notice of non-conformity

Question 16

4 categories of incoterms

Answer 16

C-terms:
- Seller will pay but the risk is tranfered
In CIF buyer must pay before inspection

D-terms: seller pays and takes the risk until arrival
Some ‘arrival duties’ on the seller

E-terms: seller bears the least risk, because goods are given out of the factory

F-terms: Seller Has to deliver, risk passes after delivery