International Law of the Sale of Goods-Free-Samples for Students

Question: Advise the Parties to the Fob Contract. Answer: Discussion As per the case, the main issue arises in this case whether the New Fads Ltd who is the seller has breaches the fob contract with the Bell Ltd. where they ready to deliver the goods to the Moyvale in the port (Mihajlov 2015). The FOB defines the term Free On Board which was specified in the International Commercial Law. In this FOB it is described that the seller who sale the products will have all the responsibilities, obligation and give the payment of the cost for deliver the goods at their own risk to the buyer. The FOB never transfers the ownership of the good but the ownership of the cargo or the ship is completely independent from the intercoms. The seller has no obligation of paying the insurance and the freight at the time of shipment. The Comptoir d Achat vs. Luis de Ridder is one of the famous case where the seller maintained his duties to ship the goods at the port of shipment and protects the contract when the goods are carried by sea as per the contract. However, they also mentioned in the contract that buyer must give the payment of actual cost, commission charges, freight charges and premium of insurance (Guo and Xiong 2016). In the Wimble Sons Co. Ltd vs. Rosenberg Sons case, it was stated that FOB is the contract where the buyer always nominates the seaworthy ship and the seller was bound to deliver the gods free on board at their own cost. According to the case study, New Fads Ltd who are seller of the computer components and form a contract with the Bell Ltd who are the buyer, as per the FOB terms and agree to deliver the goods to the Nigeria. They have arranged the shipment through the Moyvale ship. However for the negligence by one of the employee of the seller company, they missed the date of shipment and when the massive strike was called it is impossible for them to deliver the goods on time through the ship. However, in the FOB terms, the seller has some obligations to deliver the goods to the buyer by placing the goods on the nominated board and port the goods for the shipment. They must pay the delivery cost and must holder of export license and landing bill. The buyer also has some obligations where it is included that they must give the notification to the seller about the nominated vessel and port of shipment while they deliver the goods. They must receive the goods and pay the charges of goods and as well as the incidental charges (Stone 2014). Therefore, according to the case study, it can be concluded that as per the FOB contract the seller made the contract with the knowledge of the terms of FOB. The seller must deliver the goods as per the contract and must obey his duties. As per the terms of FOB contract he must deliver the goods on time. The employee who is in the seller company neglects the fax and the company must take all the responsibilities for the neglects. It is the rights of the buyer that he must claim his goods on the board on time and if he fails he can take legal action against him (Fisher 2014). Referencs Comptoir d'Achat et de Vente Du Boerenbond Belge S/A v. Luis de Ridder Limitada (The Julia) Fisher, K., 2014. A New Model for Revenue Recognition: Key Changes to Generally Accepted Accounting Principles. Guo, N. and Xiong, Z., 2016. Increasing Channel Profit in the Sale of Durable Goods. Mathematical Problems in Engineering, 2016. Mihajlov, A., 2015. Termination in regards to breach of time and documentary obligations in CIF contracts Comparative study between the English law and United Nations Convention on Contracts for Sale of Goods 1980 (Master's thesis). Stone, B., 2014. Contracts for the International Sale of Goods: The Convention and the Code. Mich. St. Int'l L. Rev., 23, p.753. Wimble, Sons Co v Rosenberg Sons [1913] 2 KB 743