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PAGE 3
Case Study for Chapter 1 and 2
A company exported a batch of goods on the basis of CFR. Because of negligence, it failed to notify the importer of the loading and shipment. As a result, the importer did not insure the goods timely. Not long after the vessel left for the destination, it ran aground and sank, causing total loss of goods. The importer lodged a claim against the exporter and asked for compensation for the lost goods. However, the exporter refused to compensate for the lost goods because the lost happened after the goods were on board the vessel. So the risks should borne by the importer. Disputes then arose.
Question: Who do you think should hold responsibilities for the loss? Why?
An exporting company finalized a deal with a foreign company with the terms of CIF Landed London. The contract stipulated that the quantity of the goods was 500 cases with L/C and shipping in May. The buyer issued the letter of credit to the seller under the contract. After the successful shipment of goods, the seller took the procedure for negotiation within the period for presentation of document and then received the payment. Soon, the seller received the buyer’s receipt of unloading and import declaration fee for the goods received in London, and requested the exporting company to pay the buyer the amount of the money in the receipt.
Question: Does the exporting company need to pay this cost, and why?
A company exported a batch of strong seasonal goods to a British customer on CIF terms. The two parties agreed to stipulated in the contract: The buyer should send the relative L/C before the end of September, while the seller should guarantee that the vessel arrived at the port of destination by December 2nd. Once the vessel arrived at the destination later than December 2nd, the buyer has the right to cancel the contract. If payment has been made, the seller should return it to the buyer.
Question: Do you think the contract signed like this is correct?
A Chinese i
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