In today’s highly globalized economy, when an Australian importer or exporter makes a contract of the sale or purchasing goods with people in other country and delivers the goods to other country, many factors will be considered into international commerce by an Australian importer or exporter. This paper identified six factors to illustrate what should be taken into account.
* Goods described carefully in the contract of sale so that in the case of breach of contract the remedies are clear and the contract of sale makes it clear when and where the risk will pass to the buyer
For example, in a case, Bowden Bros which was the plaintiff and appellant, operated business ...view middle of the document...
The sale of goods legislation in Australia explains that the goods must fit for the purpose required and be merchantable, but in an international sale, there are not rules offered expressly to ascertain whether the terms have been complied with (Mo 2013).
In addition, the issue of adequacy of remedy was raised from the case in an international sale. There is a question that if Robert Little should have sued the carrier of the onions on the basis of the unseaworthiness of the ship instead of refusing to pay the price of the onions to the seller. Moreover, it is perhaps likely to defend that the carrier did not offer an adequately equipped seaworthy ship which can carry the onions from Japan to Sydney. However, if the carrier can prove the seaworthiness of the ship, the contract of sale may be disputed again. Therefore, in this case, the parties need to go back to the contract of sale to check what the contract indicated about the condition of the goods before shipment. Under CIF term, the seller is responsible for the cost of necessary checking and mandatory pre-shipment inspection as well as appropriately making and packaging the goods at its own expense complying with the contract. It is expected to ensure adequate package for the approaches of transport made known to the seller before the conclusion of the contract (Mo 2013).
Transfer of risks under the sale of goods legislation, the first principle in consistent with majority of the Incoterms, agreement of the contract of sale providing that the risk in goods passes at the time of delivery. The second principle applying to the situation is that the delivery did not take place in conformity of the contract. Hence, the property and risk perhaps not have passed to the buyer. Therefore, the party who gave rise to delay in delivery is responsible for the risk, no matter whoever should bear the risk before delivery. This principle also accords with the Incoterms. Goods under the sale of goods legislation
Delivery (Mo 2013).
Conformity of the goods under sale of goods legislation, the goods the seller has title to sell with implied condition; the goods should confirm with the contract description and merchantable and confirm with the sample (Mo 2013).
Seller’s/buyer’s remedies under the sale of goods legislation, seller has the right to withhold delivery, to stop goods in transit, to sue for the unpaid price of goods, and to claim damages. The buyer has the right to terminate a contract when the seller breaches implied conditions, to claim damages for non-deliver, late delivery, and breach warranty by the seller (Mo 2013).
* Goods are insured against damage in the course of delivery
Shipper’s liability under The Hague-Visby Rules or the Hague Rules, shipper is obligated to offer accurate information about the goods for the carrier; to provide proper warning and instructions to the carrier for dangerous cargo; and to indemnity the carrier’s loss or damage caused by the shipper’s...