Tổng hợp Unit 17 23 PDF

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Unit 17 NEGOTIATING DELIVERY- TIMING andLOCATION THE FIVE STEPS IN NEGOTIATINGDELIVERY Step 1: TIMING - Date of delivery - Delay and results of delay  Step 2: LOCATION - Place of delivery and alternatives  Step 3: TRANSPORT - Modes of Transportation to be used - Shipping documents  Step 4: RISK...

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Unit 17 NEGOTIATING DELIVERY- TIMING and LOCATION THE FIVE STEPS IN NEGOTIATING DELIVERY  Step 1: TIMING - Date of delivery - Delay and results of delay 

 Step 2: LOCATION - Place of delivery and alternatives  Step 3: TRANSPORT - Modes of Transportation to be used - Shipping documents  Step 4: RISK, TITLE AND INSURANCE - Transfer of risk and ownership - Insurance  Step 5: TERMS OF TRADE: INCOTERMS 2020 Stipulations in a contract - Time of delivery - Place of delivery - Notification of delivery - Instructions for delivery 1. Timing 1.1 What is the date of delivery?  Three key dates: - The date of dispatch from sellers’ premises - The date of loading onto vehicle/vesel - The date when the goods should arrive at destination  The principle: - The date of delivery agreed is usually subject to the use of a term in Incoterms 2020 - The date of delivery is the date on which the last precondition is met - The date of coming into force is usually a number of days - Cut-of date is a date on which the parties agree to terminate a contract when certain precondition(s) is not met. 1

1.2. Stipulating the time of delivery (1) Specific dates - A fixed date: On 12 August, 20— - The latest date: Not later than 12 August, 20— - Within a specified period: In August, 20-- Within a certain time at buyer’s or seller’s option: The date of delivery shall be twenty-eight days after the date of coming in force of the Contract at the Buyer’s option. (2) Immediat e shipment E.g.: Shipment shall be made (Ngay: thường gây ra tranh cãi) immediately/ promptly/ without any undue delay/ as soon as possible (ASAP).  Subject to American law: - “Prompt/immediate delivery”: within 05 days from the date of the signature of a contract. - “ASAP/spot delivery”: within 5-10days from the date of the signature of a contract. Subject to UCP 600: - “Prompt, immediate, ASAP or similar terms”: means within 30 days from the date of an issuance of L/C” (3) Unspecific dates - Shipment shall be subject to the availability of first steamer / shipping space / opening of L/C/ export licence. 1.3. Timing and “Time is of the essence”  The principle - According to Anglo-American Law: If time of delivery is of the essences and is not kept, a buyer is entitled to send back the goods delivered and refuse payment. The contract will be terminated. This is not allowed by Continental Law.  Buyer’s favor: Time is, and shall remain, of the essence of this agreement, and no acts of the Seller, shall constitute waiver of this provision.  Seller’s favor: Unless otherwise agreed in writing by the Seller the time stipulated for shipment shall not be of the essence and may be extended by the Seller for a period not exceeding fourteen (14) days by notice thereof in writing to the Buyer”

1.4. (1)

Excused delay Grace Period: “If delivery is not effected within two weeks of the agreed 2

delivery date for reasons other than Force Majeure, then the seller shall pay the Buyer 0.1% of the contract price” What is the grace period? 14 days - Notes: The grace period purpose is to facilitate early delivery. (2) Force Majeure - ICC provisions incorporated: The Force Majeure (Exemption) clause of the International Chamber of Commerce (ICC Publication No 421) is hereby incorporated in this contract Duties and Obligations of the parties in case of Force Majeure: tới lãnh sự quán của nước người mua để xác nhận - Party concerned shall notify the other party of such event as soon as possible - Submit evidence of Force Majeure - Take all possible measures to minimize the loss or damage - To terminate the contract or to resume (tiếp tục thực hiện lại HĐ) obligations after Force Majeure 

 Specimen clause “If a Force Majeure situation arises, the party concerned undertakes to bring this event to the other party’s knowledge within 15 days from the beginning of the event and to confirm by registered letter the occurrence of the aforesaid event confirmed by the related Authority of the of the concerned party’s country, and suspend the Contract. Further, the party concerned shall spare no endeavors to minimize any loss or damage caused by Force Majeure. At the end of the event of Force Majeure, the party concerned shall be granted reasonable time to resume the performance of the contract, on conditions mutually agreed upon by both parties.” 1.5. Unexcused delay and the Buyer’s remedies (Consequences of Non-Excusable Delay)  The Principle - Party at fault shall sufer fines; - Wronged party shall terminate contracts  Types of compensation (1) Liquidated damages: - It is most commonly used because the motive is to bring afair pre-estinmated compensation to the Buyer and to avoid expensive discussion in case of late delivery - Limited by Anglo-American Law: 5% ; Vietnamese law: 8% (2) Penalties (Buyer’s favor) - Damages are paid to compensate the buyer for a loss- a real or actual loss - The motive is to terrorizethe other party - Not allowed by Anglo- American Law (3) Quasi-indemnity (Seller’s favor) - A compensation figure is fixed so low that, in efect, it releases a seller from responsibility for late delivery. 3

2. Location - Place of delivery - Notification of shipment - Instructions for delivery 2.1. Place of delivery  The Principle: The place of delivery is the point at which the exporter passes responsibility for and risk to the goods to a Buyer.  Stipulations in a contract Place of delivery: - Port of shipment/discharge/ transshipment (if any)/ destination E.g.: - Delivery shall be made FOB Saigon port, Vietnam, Incoterms 2020 - Port of shipment: Saigon port, Vietnam - Port of discharge: Liverpool, U.K 2.2 Notification of delivery Buyer’s obligation: (Under F-Terms) - To notify the Seller of the availability of the vessel: Vessel’s name, ETA , ETD and all particulars about the vessel: vessel capacity, nationality, flag… Seller’s obligation - First notification (before shipment): To notify the buyer of the availability of the goods for shipment, and particulars, such as: Commodity, quantity, quality, packaging, marking, value… - Second notification (after completion of loading): To notify the buyer of the completion of loading the goods on board the carrying vessel, the actual quantity shipped, B/L and invoice No. and ETD, ETA…  Specimen clause: ”07days before the agreed time of shipment, the Seller shall advise the Buyer by telex/ fax the shipping particulars such as: the quantity, estimated time of departure (ETD), estimated time of arrival (ETA) of the vessel. Upon the completion of loading the Goods, the Seller shall telex/cable the Buyer the shipping particulars such as: the actual quantity shipped, the value of the actual goods stated on the Invoice, Bill of Lading No., ETD and ETA.”

3.3 Instructions for delivery Common instructions: - Direct transport only - Total shipment: in one lot - Transshipment: allowed/prohibited

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- Partial shipment: allowed/prohibited Note: - If a third party delivers the goods on behalf of the seller: Third party’s B/L acceptable  Liên quan tt bằng L/C: tên của người giao hàng (shipper) và tên người hưởng lợi là 2 ngời khác nhau nhưng ngân hàng cũng phải thanh toán. (VD: A bán cho B, nhưng C lại là người giao hàng vì A là đại lý chỉ ký HĐ mà không có hàng để giao -> giao hàng thì người hưởng lợi là A, phải đưa ra third party’s B/L acceptance)  Vận đơn cho bên thứ ba (Third party B/L) là vận đơn mà trên đó có ghi người thụ hưởng thư tín dụng (L/C) không phải là người giao hàng mà là một người khác. - If the voyage of the goods is short: Stale Bill of Lading acceptance  Stale Bill Of Lading là Vận Đơn Mất Hiệu Lực, Quá Hạn; Vận Đơn Chậm (Giao Sau Khi Hàng Đến). 2.4. What if the goods are ready but delivery is impossible? (The Buyer fails to arrange for the arrival of the vessel)  Specimen clause: “If the vessel named by the Buyer fails to arrive on or before the agreed delivery date, then the Seller may, at his discretion deliver the Goods to a bonded warehouse in the port of Saigon, and shall be deemed to have fulfilled his delivery obligations under this Contract.” “If the vessel named by the Buyer fails to arrive on or before the agreed delivery date, then the Seller may, at his discretion deliver the Goods to a bonded warehouse in the port of Saigon, and shall be deemed to have fulfilled his delivery obligations under this Contract.”

2.5. What if the vessel is available but no cargo loaded? => The Seller fails to have the goods available for shipment (có tàu nhưng không có “In the event no cargo is available to be loaded on the nominated vessel at loading port, then dead freight shall be paid by the Seller on the Buyer’s actual claim (cước không sẽ chi trả bởi bên Bán trên cơ sở khiếu nại thực tế của bên Mua.” hàng) “In the event no cargo is available to be loaded on the nominated vessel at loading port, then dead freight shall be paid by the Seller on the Buyer’s actual claim (cước không sẽ chi trả bởi bên Bán trên cơ sở khiếu nại thực tế của bên Mua.” Practice 1. Fill in the gaps with the words given in the box (1) Coming Into Force approval, authorities, execution, force, necessary, null This Contract shall come into 1.force after execution by both parties on the date of the last necessary 2. Approval by the competent authorities in the country of the Seller and the Buyer. If the Contract has not come into force within ninety days of 3,execution 5

, it shall become null and void. This Contract shall come into force after execution by both parties on the date of the last 4.necessary approval by the competent5. Authorities in the country of the Seller and the Buyer. If the Contract has not come into force within ninety days of execution, it shall become 6. Null and void. (2) Force Majeure available, default, delayed, inaction, limited, occurrences, otherwise , reasonable, regulations , unrest If either party is prevented from, or 1. Delayed in, performing any duty under this control, then this event Contract by an event beyond his 2. reasnable shall be deemed force majeure, and this party shall not be considered in 3 default and no remedy, be it under this Contract or 4. otherwise, shall be 5. Available to the other party. Force majeure events include, but are not 6. limited to: war (whether war is declared or not), riots, insurrections, acts of sabotage, or similar 7occurences ; strikes, or other labor 8. unrest ; newly introduced

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laws or Government 9. regultaions ; delay due to Government action or 10. inaction ; fire, explosion, or other unavoidable accident; flood, storm, earthquake, or other abnormal natural, event. (3)

Liquidated Damages

breach, deduct, deduction, delayed , penalty, specified

If the Seller fails to supply any of the Goods within the period 1. specified in the Contract, the Buyer shall notify the Seller that, a 2. Breach of contract has occurred and shall 3. Deduct from the Contract Price per week of delay, as liquidated damages, not as a 4. penalty, a sum equivalent to one half percent of the delivered price of the 5. delayed Goods until actual delivery up to a maximum 6. deduction of 8% of the delivered price of the delayed Goods. Practice 2: Case study Case 1 Read this Coming into Force provision; then answer the question. This Contract shall come into force after approval by the governments of the Seller and the Buyer, however, at the latest by 31st December 20--.

Does this provision mean A. That the contract will come into force on 31st December 20-- even if the two governments have not approved it? B. That the contract will become null and void if it has not come into force by 31st December 20--? Case 2 The following clause is (lightly) adapted from a contract for the construction of Fine Payable If the Contractor fails to complete the Work at the fixed day, a fine shall be imposed upon him for the period of delay until the Work is completed. The fine shall be as follows: 2% for the first week. Or any part of it. 4% for the second week, or any part of it. 6% for the third week, or any part of it. 8% per week for the fourth week, or part of it, and for all succeeding hydroelectric project. 1.The clause uses the word “fine”. Does that tell you with certainty what kind of clause you are looking at? (Penalty clause or liquidated damages clause?)

 YES  NO 2. After how long a delay does the contractor lose 100% of the contract price?  14 weeks  2%+ 4+6+8= 20% Còn 80% -> 10 tuần Tổng 14 tuần 3.Do you think this clause is a penalty clause or a liquidated damages clause?  PENALTY  LIQUIDATED DAMAGES  Penalty clause. The sum bears no relation to any anticipated loss 4.If the applicable law is the law of the State of New York, would the judge enforce this clause?  YES  NO Case 3 Dead on Time In preliminary talks, Vietnamese Steel Importing Co. agrees with All Metal Co. in Japan to import goods from Tokyo and the goods should arrive in Vietnam on or before 13th August 20--. When the contract is drafted, it mentions the date as agreed—13th, August 20--. Because the Vietnamese company asks for a CIF contract under Incoterms 2020, the delivery terms are accordingly agreed in the contract as follows: Delivery CIF, Saigon port, Incoterms 2020, on or before 13th August 20—.  Điểm giao hàng là Tokyo, về cảng VN, ngày giao hàng là ngày 13/8 tại càng Nhật Bản, là ngày khởi hành thì sẽ đến SG port trễ hơn ngày 13/08

Can the goods arrive in Vietnam on or before 13th, August? Why or why not?  No. because delivery will be made in Japan on or before 13th August Case 4 Force Majeure Verbena Jute Makes sacks, sackcloth, and other jute products. Its standard contract includes this definition of a force majeure event: If either party is prevented from; or delayed in, performing any duty under this Contract by an event beyond his reasonable control, then this event shall be deemed force majeure. Which of the following events are "force majeure" events under this definition? (Note: the word "control" needs some thought. An event is beyond the control of the exporter if (a) he could not have foreseen it, (b) if he could not have influenced it, and (c) if he could not have taken reasonable steps to avoid the problems that were likely to arise.) 1.A Volcanic eruption buries the factory in ash.  YES  QUESTIONABLE  NO 2.The annual flooding of the River Verb ruins some of the jute intended for use in making sacks.

 YES  QUESTIONABLE  NO 3.A ban is issued on the export of jute products by a newly elected government.  YES  QUESTIONABLE  NO 4.A ban is issued on the export of jute products by a government that has been preparing legislation on this subject for five years.  YES  QUESTIONABLE  NO 5.The workforce at the factory go on strike.  YES  QUESTIONABLE  NO 6.The dock workers in Port Verbena go on strike.  YES  QUESTIONABLE  NO 7.A lockout (Background: The workers have been striking for one day a week. The management locks the workers out of the factory until they agree to end the strikes.)  YES  QUESTIONABLE  NO 8. Shortage of supplies (Background: The exporter cannot get the raw jute he needs from the supplier because of a shipping delay.)  YES  QUESTIONABLE  NO 9. Shortage of Supplies (Background: The exporter cannot get the raw jute he needs from the supplier because the Central Bank will not give him foreign exchange to pay the supplier.)  YES  QUESTIONABLE  NO 10. A fire burns down the factory.  YES  QUESTIONABLE  NO Practice 3 English-Vietnamese translation 1. The Buyer shall not be entitled to terminate this Sale Contract for reasons of late shipment unless the Buyer shall first have given the Seller fourteen (14) days written notice of its intention to terminate and the Seller does not efect shipment before the expiration of that fourteen (14) days period, which period shall not commence to run until the specified date of shipment or the last day of the extended period under Clause 7.2 provided always that if the Seller’s performance is afected by Force Majeure time shall not run during the period performance is suspended. Bên Mua không có quyền chấm dứt Hợp đồng mua bán này vì lý do giao hàng trễ trừ khi Bên Mua phải thông báo trước bằng văn bản cho Người bán mười bốn (14) ngày về ý định chấm dứt và Bên Bán không thực hiện việc giao hàng trước khi hết hạn khoảng thời gian mười bốn (14) ngày đó, khoảng thời gian này sẽ không bắt đầu chạy cho đến ngày giao hàng cụ thể hoặc ngày cuối cùng của khoảng thời gian kéo dài theo Điều 7.2, với điều kiện luôn luôn rằng nếu hiệu suất của Bên Bán bị ảnh hưởng bởi thời gian Bất khả kháng thì sẽ không chạy trong thời gian hiệu suất thời kỳ bị đình chỉ.

2. In the event of late Delivery for reasons other than Force Majeure as defined in Clause 17 below, the SELLER shall pay as liquidated damages and not as a penalty the sum of 1% of the value of the undelivered part per Day of late Delivery up to a maximum of 10% of the Contract Price. Payment of liquidated damages shall be due without the BUYER having to furnish proof of any loss, damage or injury. Trường hợp Giao hàng trễ vì những lý do không phải là Trường hợp bất khả kháng như được định nghĩa tại Khoản 17 dưới đây, BÊN BÁN sẽ phải trả như những thiệt hại đã thanh lý chứ không phải là một khoản phạt số tiền 1% giá trị của phần chưa được giao cho mỗi Ngày Giao hàng trễ lên đến tối đa 10% Giá Hợp đồng. Việc thanh toán các thiệt hại đã thanh lý sẽ đến hạn mà BÊN MUA phải cung cấp bằng chứng về bất kỳ mất mát, hư hỏng hoặc thương tích nào.

Practice 4 Vietnamese-English translation 1.Trường hợp hàng đã sẵn sàng giao theo lịch quy định trong hợp đồng này nhưng người mua không chỉ định được tàu đến để xếp hàng, thì mọi rủi ro, thiệt hại hay bất kỳ chi phí liên quan nào đến hàng hoá sẽ tính cho người mua chịu trên cơ sở đòi bồi thường thực tế của người bán. In the event the goods are ready for delivery according to the schedule specified in this Contract, the buyer fails to designate a vessel to load the goods, all risks, damages or any costs relating to the goods shall be charged payable to the buyer on the basis of the seller's actual claim.

2.Trường hợp không có hàng để bốc lên con tàu chỉ định đã sẵn sàng tại cảng xếp, thì cước khống sẽ do người bán chịu trên cơ sở đòi bồi thường thực tế của người mua và người mua sẽ xuất trình những chứng từ sau cho ngân hàng Việtcombank để nhận tiền bảo lãnh thực hiện hợp đồng (thời gian được tính là từ 20-25 ngày kể từ ngày mở L/C) Where there is no cargo to load on the nominated vessel which is ready at the port of loading, the dead freight shall be borne by the Seller on the basis of the Buyer's

actual claim and the Buyer shall present the following documents to Vietcombank to receive the contract performance guarantee (time is calculated from 20-25 days from the date of L/C opening)

3.Trường hợp hàng hóa đã sẵn sàng để xếp lên tàu nhưng người mua không chỉ định được tàu để bốc hàng, mọi rủi ro, thiệt hại, các chi phí liên quan đến hàng hoá sẽ do người mua chịu trên cơ sở đòi bồi thường thực tế của người bán. Where the goods are ready to be loaded on board the vessel but the Buyer fails to nominate the vessel to load the goods, all risks, damages and costs related to the goods shall be borne by the Buyer on a claim basis. Usually the seller's actual.

Unit 18 TRANSPORT and INSURANCE - Packaging - Shipping marks - Shipping documents 1. Packaging - One primary duty of the exporter is to ship the goods in suitable packaging. - According to Vienna Convention: Goods must be "adequate packaged". Goods do not conform to the contract unless they are "contained or packaged in the manner usual for such goods"(đóng gói bao bì mà hàng hóa đó thông thường được đóng gói) - To pack: đóng gói, làm bao bì - To package: làm bao bì cho đẹp  Specimen clause: “Goods are to be packed in new, strong, wooden cases suitable for long-distance ocean transport and are to be well protected against dampness(ẩm ướt), shock, rust (rỉ xét)or rough handling. The Seller shall be liable for any damage to or loss of the Goods attributable to improper or defective packaging” “Goods are to be packed in new, strong, wooden cases suitable for l...