International Commercial Transactions

Packed with vital information and invaluable advice, the 4^th edition of this much acclaimed book takes into account recent developments in international trade, particularly the publication of Incoterms® 2010, latest edition of ICC’s worldwide used standard trade rules.

The author, legal expert and writer of international reputation, gives a concise and lucid presentation of the legal framework and the commercial principles, rules and practices surrounding cross-border transactions and the interrelations between them.

For a better understanding , the volume is divided into 3 parts:

·         Common problems in international transactions

·         Rights and obligations of parties to an international sale contract

·         Rules and practices for related contracts

An extensive annex contains the texts of international conventions, major trade rules elaborated under the auspices of governmental and non-governmental bodies, model contracts and other helpful hands on material.

Table of Contents

Foreword
Preface

SECTION I
MAIN ELEMENTS OF COMMERCIAL TRANSACTIONS

1.     PRINCIPLES OF INTERNATIONAL COMMERCIAL CONTRACTS
  1.1 Freedom of contract
  1.2 Lex mercatoria
  1.3 Mandatory law

2.     INTERNATIONAL CONTRACTS OF SALE
  2.1 The origin of CISG
  2.2 The applicability of CISG and choice of law
  2.3 The formation of the contract of sale
  2.4 Interpretation of contracts
  2.5 The gap-filling function of custom of the trade and non-mandatory law

3.     THE TRANSACTIONS
  3.1 The sale of tangibles
  3.2 The sale of intangibles and mixed contracts

4.     PAYMENT MODALITIES
  4.1 Simultaneous exchange of goods for money
  4.2 Payment in advance
  4.3 Documentary credit
  4.4 COD and CAD
  4.5 The right of stoppage in transit
  4.6 Retention of title

5.     PROTECTION AGAINST BREACHES OF CONTRACT AND CHANGED CIRCUMSTANCES
  5.1 Bid bonds, performance bonds, first demand-guarantees
  5.2 Changed conditions and the principle of binding contracts (pacta sunt servanda)
  5.3 Exemption, force majeure and relief clauses
       Force majeure clauses
       Hardship clauses
       Price adjustment and currency clauses

6.     TRADE TERMS AND THE CONTRACT OF CARRIAGE
  6.1 The variants (from EXW to DDP)
        Incoterms® 2010
  6.2 Changed routines for the performance of the contract of carriage
  6.3 Group I and II

7.     THE RISK OF LOSS, DAMAGE OR DELAY DURING CARRIAGE OF THE GOODS
  7.1 General principles of risk distribution
  7.2 Transport insurance
  7.3 The insurer's recourse actions

8.     THE CO-ORDINATION OF THE CONTRACTS OF SALE, CARRIAGE, INSURANCE AND    FINANCING
  8.1 The interrelation between the different contracts
  8.2 The traditional importance of the bill of lading
  8.3 The risks inherent in the bill of lading-system
  8.4 Sea waybills
  8.5 Electronic bills of lading

9.     RESOLUTION OF DISPUTES
  9.1 Conciliation and ADR
  9.2 Court proceedings or arbitration?
  9.3 Some salient features of arbitration
  9.4 Check-list of some important questions on arbitration

SECTION II
SALES TRANSACTIONS

1.     THE SELLER’S PERFORMANCE
  1.1 Specification of the goods and the seller’s obligation to ensure conformity
  1.2 The four categories of trade terms (E-, F-, C- and D-Incoterms® 2010)
  1.3 The A- and B- classification of seller’s and buyer’s obligations to deliver and take delivery
  1.4 The main elements of the 11 Incoterms
        Group I
        EXW  FCA  CPT  CIP  DAT  DAP  DDP
        Group II
        FAS  FOB  CFR  CIF
  1.5 How to choose the optimal trade term
  1.6 Cost distribution systems

2.     GENERAL PRICIPLES RELATING TO THE BUYER’S REMEDIES FOR THE SELLER’S BREACH OF CONTRACT
  2.1 The buyer’s right to require specific performance
  2.2 The buyer’s right of avoidance
  2.3 The buyer’s right of compensation
  2.4 Exemption from liability for breach

3.     THE SELLER’S LIABILITY FOR FAILURE TO DELIVER CONFORMING GOODS
  3.1 The buyer’s obligation to examine the goods and notify non-conformity
  3.2 The seller’s obligation to cure defects
  3.3 The seller’s right to cure defects
  3.4 The buyer’s right to price reduction
  3.5 The seller’s product liability
  3.6 Exemption and limitation of liability clauses

4.     THE BUYER’S PERFORMANCE
  4.1 The buyer’s payment obligation and the determination of the price
  4.2 The ICC Uniform Customs and Practice for Documentary Credits (UCP 600)
  4.3 The buyer’s failure to co-operate or to take delivery
  4.4 The buyer’s breach of ancillary obligations
  4.5 The seller’s right to require the buyer to pay the price
  4.6 The seller’s right of avoidance in case of the buyer’s breach
  4.7 The seller’s right to default interest and damages

5.     ANTICIPATORY BREACHES OF CONTRACT
  5.1 The right to suspend performance
  5.2 The right of avoidance in case of anticipatory breach

6.     EFFECTS OF AVOIDANCE
  6.1 Avoidance requires notice to the other party (CISG art. 26)
  6.2 Release from and restitution of performance
  6.3 Preservation of the goods in case of the buyer’s failure to take delivery or rejection of the goods

SECTION III
CONTRACTS OF CARRIAGE AND RELATED CONTRACTS

1.     THE MARKET FOR TRANSPORTATION SERVICES
  1.1 Charterparty and liner trade for carriage of goods by sea
  1.2 Carriage over land and by sea
  1.3 Multimodal transport
  1.4 Freight forwarders and cargo consolidation
  1.5 Freight Forwarder documents (the FIATA-documents)

2.     THE PARTICULAR RISK DISTRIBUTION UNDER
  2.1 The marine adventure and cost distribution in general average
  2.2 Mandatory minimum liability under the 1924 Bill of Lading convention (“the Hague Rules”)
  2.3 The 1978 Hamburg Rules and the resistance to change
  2.4 The 2009 Rotterdam Rules and the battle of conventions

3.     THE CARRIER’S LIABILITY FOR CARRIAGE OF GOODS BY AIR, RAIL, ROAD AND MULTIMODAL TRANSPORT
  3.1 The contract of carriage determines the scope of application of the respective conventions
  3.2 Air transport
  3.3 Rail transport
  3.4 Road transport
  3.5 Declarations of value
  3.6 The liability of the multimodal transport operator (MTO)
  3.7 The 1991 UNCTAD/ICC Rules for Multimodal Transport

4.     THE LIABILITY OF TERMINAL OPERATORS
  4.1 Freedom of contract prevails
  4.2 The 1991 OTT-Convention

5.     THE LIABILITY OF FREIGHT FORWARDERS
  5.1 The 1967 UNIDROIT draft convention
  5.2 The freight forwarder’s liability as carrier
  5.3 The 1996 FIATA Model Rules for Freight Forwarding Services

6.     THE INTERRELATION BETWEEN THE CONTRACT OF SALE AND CONTRACTS WITHIN THE TRANSPORT SECTOR

INDEX