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International Law

In: Business and Management

Submitted By ywz0307
Words 1827
Pages 8
Introduction

In today’s highly globalized economy, when an Australian importer or exporter makes a contract of the sale or purchasing goods with people in other country and delivers the goods to other country, many factors will be considered into international commerce by an Australian importer or exporter. This paper identified six factors to illustrate what should be taken into account.

* Goods described carefully in the contract of sale so that in the case of breach of contract the remedies are clear and the contract of sale makes it clear when and where the risk will pass to the buyer

For example, in a case, Bowden Bros which was the plaintiff and appellant, operated business in Queensland and Japan and had an office branch in Sydney. Robert and Co was the defendant and respondent, operating business in Sydney. Under a contract of sale based on the CIF term to Sydney, Robert Little achieved an agreement to buy 450t of Japanese onions from Bowden Bros. The buyer found that the onions were unmerchantable when are shipped to Sydney and refused to accept and pay for them (Mo 2013). The seller sued the buyer for the unpaid price of the contract. The buyer argued that delivering the onions in Sydney was the sellers’ obligation under the contract. The seller argued that the contract was intended to delivering the goods at Kobe, Japan and marine risks should be responsible for the condition of the onions, not because of the seller’s breach of the implied term regard to merchantability under the relevant sale of goods legislation. Under the CIF term, the risk passes to buyer when the goods have passed over the ship’s rail in loading at the named port of shipment. The case indicated the issue of contract construction when the contract combines with an Incoterm and also showed an uncertain point that the sale of goods legislation is applied to contract of

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