Chapter 1 - Questions

1. What are 5 steps in negotiating delivery?
- Timing (date of delivery, delay, results of delay), location (place of delivery and
alternatives), transport (modes of transport to be used), risk title and insurance, terms of trade
2. When must delivery take place?

Delivery takes place up to the date of delivery when the date of dispatch, loading and the date for
the goods arrival are scheduled.
3. What is the place of delivery?

The place of delivery is where the goods are shipped from the seller to the buyer and is up to the
terms of delivery
4. Why is location important?

Because the date of payment normally depends on the place and time delivery. At this point, too,
rish and ownership often pass.
5. Why is transportation important?

Because it involves the risk of loss or damage, the safety of the goods, deals with time (shorten
the time of delivery), lower the cost of delivery.
6. What are modes of transportation?

Air, sea, inland, and multimodal
7. Where is the risk often passed from the exporter to the importer?
At the point of delivery
8. Where does transfer of ownership take place?

At any point between the signature of the contract and final payment for the goods
9. How many kinds of delay in delivery?

Two. Excused delay and unexcused delay
10. What is excused delay?

Excused delay (excusable delay) often involves a grace period and is nearly always subject to a
for majeure provison.
11. What events does delivery date trigger?

- The exporter’s fulfillment of his primary duties under the contract
- Payment normally becomes due
- Risk, title pass to the buyer
- Delay, as well as any compensation to be paid by the exporter
12. How to fix delivery date?

- Use a straightforward calendar date
13. When does the contract come into force?
- When all the preconditions for the sale have been met. The preconditions are:
Receipt of import and/or export approval
Receipt of foreign exchange approval from a central bank
Issuance of a letter of credit or bank guarantee (Bảo lãnh ngân hàng)
Making a down-payment (đặt cọc) by the buyer
Issuance of an insurance policy (cấp BH đơn)
Issuance of a certificate of origin
Delivery by the buyer of plans, drawings or other documentation
14. When is a contract binding?

- Between the signature date and the date of comin into force
15. When is a contract binding and effective?

- After the date of coming into force
16. In what kind of contract is a cut-off date set?

- Common in fixed-price contracts: a long delay can make the price unrealistic
- Cut-off date: if the contract has not come into force for a certain period of time, it shall become
null and void
17. How does the date of coming into affect the delivery date?
- The delivery date is normally fixed for a certain number of days after the contract has come
into force
18. What is the grace period?

- Grace period is the period after the pre-delivery and before the penalty period
19. What is the grace period used for?

- To waive the payment of a penalty for a certain period of time agreed by both parties
20. What can parties do if the force majuere events continue too long?
- If force majeuer condition continues for months, life becomes difficult for both sides, so
contracts often regulate the force majeuer period, in particular the right of one (or both) parties to
terminate the contract.
21. What are the 3 outcomes of FM?

- Delivery resumes without penalty for the seller
- Buyer notifies exporter that the contract is terminated
- Unclear and dangerous situation
22. What are the two remedies given to the Buyer for any unexcused delay?
- The court requires the exporter to issue a decree of specific performance: requiring the exporter
to make delivery as agreed
- The court requires the exporter to pay the buyer compensatory damages – a sum of money that
fully and adequately compensates the buyer for any mearsurable loss
23. Which law prefers to award damages?

- Common law
24. Which law enforces performance?

- Civil law
25. What questions do the courts ask in setting a figure for compensatory damages for late
delivery?
- Did the loss provably follow from the breach?
- Was the loss reasonably close to the breach in the chain of events?
- Was the loss “mitigated” – in other words, did the buyer take reasonable steps to keep the loss
as small as possible?
26. What are liquidated damages? (tiền bồi thường định trước)
- A fair figure, a lump sum to be paid per day (week or month) of late delivery
27. What are penalties?

- High figure, not to compensate but to punish or to use the threat of punishment to achieve
acceptable performace
28. Explain the differences between liquidated damages and penalties

Features Liquidated damages Penalties Quasi-indemnity
Definition - Fair figure, a lump - High figure, used to - Low figure, fixed by
sum to be paid per day force the exporter to the exporter to relieve
(week or month) of late deliver punctually him from the
delivery responsibility for late
delivery
Motive - Compensate the - To terrorize the - To relieve the
buyer fairly for any exporter into punctual exporter of liability
delay in delivery delivery for delay in delivery
Scale - Enforceable - Not enforceable in - Enforceable
everywhere but subject English law or other everywhere but open
to increase or decrease common law systems to challenge as
in some legal systems “unconscionable”
29. What is quasi-indemnity? (Tiền bồi thường tượng trưng) (như trên)
30. What notation must a Marine Bill of Lading bear? (Vận đơn đường biển)
- BL must indicate that the goods have been loaded on board a named vessel
31. How can a marine bill of lading be made into a negotiable document?
- Type “to order” in the Consignee box. The shipper must endorse (ký xác nhận) the bill
32. What are clean shipping documents? (vận đơn sạch)
- No notes about defects
33. What aspects of the goods does the carrier ( the transportation company) inspect?
- Packaging and general appearance
34. What defects does the carrier note on the face of the bill of lading or other shipping
documents?
- Content leaking (hàng bên trong bị rỉ ra)
- Packaging soiled by contents (bao bị bẩn do hàng ngấm ra)
- Packaging broken/holed/torn/damaged
- Packaging contaminated (bao bì bị bẩn bên ngoài)
- Goods damaged/scratched
- Goods chafed/torn/deformed
- Packaging badly dented (bao bì bị móp)
- Packaging damaged – content exposed
- Insufficient packaging
35. Which player (exporter or buyer) is responsible for arranging insurance cover?
- It is up to two sides to reach agreement on the terms that best meets their needs
36. Name types of insurance policy (6 types)

- Floating policy and open cover
- Valued and unvalued
- Time policy and voyage policy
37. Distinguish floating and open cover insurance policy:

Floating insurance policy Open cover insurance policy
- Covers on all shipments - Covers on all shipment

- Covers over a long period, a policy on each - Coverance of certificate
delivery
38. Distinhguish valued and unvalued policy:

Valued (BH kê khai giá trị) Unvalued insurance policy
- The exporter states the value of the goods - The exporter doesn’t state the value of the
on the insurance document goods on the insurance document
38. Distinguish time policy and voyage policy

Time policy (BH theo tgian) Voyage policy (BH theo trạm)
- Goods can be insured between two dates - Goods can be insured between two places
39. What does a Marine Insurance policy cover?
- 3 variant clauses: Cargo clause A, B, and C
+ A covers anything not excluded
+ A excludes: Willful misconduct of the assured
Ordinary leakage, loss of weight
Normal wear and tear (hao mòn tự nhiên)
Improper packaging
Inherent vice in the goods (khuyết tật tự nhiên tiềm ẩn của hh)
Insolvency of the owners of the vessel ( Mất kn thanh toán của chủ tàu)
Use of nuclear weapons
+ B and C exclude anything not expressly cover
+ B covers: Loss of or damage to the subject-matter insured attributable to: fire or explosion,
vessel or craft being stranded, ground, sunk, or capsized, collision or contact of vessel,….
Loss or damaged to the subject-matter insured caused by: general average sacrifice,
jettison or washing overboard, (vứt hàng xuống biển hoặc hàng bị rửa trôi), etc.
Total loss of any package lost overboard or dropped whilst lading on to, or
unloading from a vessel or craft
+ Clause C covers: Loss or damage to the subject-matter insured attributable to:… (giống B)
Loss or damage to the subjet-matter insured caused by: general average
sacrifice and jettison
40. What are 3 variables taken into account when setting up the 13 terms?
- Where along the transportation route delivery takes place
- What means of transport is used
- What costs the exporter might pay after the point of delivery
41. Identify 4 categories in which the 13 terms are grouped

- E, F, C, D terms
42. What are main functions of ocean BL?

- Used for transport by ship
43. What are requirement of BL when payment is made by LC?

- Must bear the notation that the goods have been shipped on board a named vessel
44. Three packaging problems are worth mentioning

- Packaging of dangerous goods is subject to special regulations in all countries. The exporter
should ask for instructions from the buyer if dangerous goods are in questions
- Some national laws require fumigation (khử trùng) of all containers entering the country
- Agriculture-based developed economies tend to place severe restrictions on packaging
materials. Hay, straw and rice husks are oftern forbidden, wooden packaging must often be
fumigated. If in doubt, the exporter should consult the buyer or the consulate of the importing
country

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Chapter 1 - Questions

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1. What are 5 steps in negotiating delivery?

2. When must delivery take place?

3. What is the place of delivery?

4. Why is location important?

5. Why is transportation important?

6. What are modes of transportation?

8. Where does transfer of ownership take place?

9. How many kinds of delay in delivery?

10. What is excused delay?

11. What events does delivery date trigger?

12. How to fix delivery date?

14. When is a contract binding?

15. When is a contract binding and effective?

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

18. What is the grace period?

19. What is the grace period used for?

21. What are the 3 outcomes of FM?

23. Which law prefers to award damages?

24. Which law enforces performance?

27. What are penalties?

28. Explain the differences between liquidated damages and penalties

36. Name types of insurance policy (6 types)

37. Distinguish floating and open cover insurance policy:

- Covers on all shipments - Covers on all shipment

38. Distinhguish valued and unvalued policy:

38. Distinguish time policy and voyage policy

41. Identify 4 categories in which the 13 terms are grouped

42. What are main functions of ocean BL?

43. What are requirement of BL when payment is made by LC?

44. Three packaging problems are worth mentioning

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