4.Terms of Commodity.ppt

SEIB OF GDUFS Chapter Four Terms of Commodity Learning objectives After reading this chapter you should be able to explain the different ways of quality stipulation outline the quantity measurement units and systems describe the approaches to weight calculation understand the functions and features of different types of export packaging identify marking on the packing of goods for international sales compose quality, quantity and packing clauses properly 4.1 Name of commodity Significance CISG Article 35: The seller must deliver goods which are of the quantity, quality and description required by the contract and which are contained or packaged in the manner required by the contract Issues concerning stipulating name in sales contract: being clear, specific precise being practical adopting the widely accepted name (HS Code) 4.2 Quality Definition: refers to the intrinsic elements of commodities including the internal properties or ingredients as well as the external appearance.. 4.2 Quality: ways of quality stipulation 4.2 Quality stipulation –Sale by description Specification comprise some important indicators such as composition, content, purity, length, size, etc. Example China Sesame Seed Moisture: 8% max. Admixture: 2% max. Oil content: 52% basis 4.2 Quality stipulation –Sale by description Sale by grade be indicated simply by stating its grade, as presumably the seller and the buyer are supposed to have reached a consensus on the classification implication of grades. to avoid misunderstanding and the subsequent disputes, however, it is recommended to lay down some major specifications 4.2 Quality stipulation –Sale by description sale by grade: example Fresh Hen Eggs, shell light brown and clean, even in size Grade AA: 60-65gm per egg Grade A: 55-60gm per egg Grade B: 50-55gm per egg Grade C: 45-50gm per egg 4.2 Quality stipulation –Sale by description Sale by standard when specifications or grades are laid down