BUS607 Week 3 Discussion 2 Sale of Goods

Sale of goods

1.      CISG

CISG is the “UN Convention on Contracts for the International Sale of Goods. " The CISG is a uniform law that provides rules to govern sales contracts between parties from different countries if the goods are being shipped from one country to another. The Convention was adopted in 1980 and has since been ratified by more than 95 countries. Although it does not apply to the sale of intangible goods, this legislation applies when there is an international element in any way that causes international commercial disputes. The CISG is very popular legislation among the business community. The Convention allows parties from different countries to be able to settle their disputes without any additional cost, without any mandatory arbitration, and to settle them in their own countries.

Differences between UCC and CISG

UCC is a uniform law enacted by a state for the purpose of taking precedence over any conflicting statute of that state, which is the common law developed under the English tradition. The CISG is a uniform international civil code, an attempt to codify consumer protection laws internationally. It is based on the French Civil Code.

The UCC applies in most states and provides remedies to consumers who contracted with sellers or providers in their home state. The CISG is an international convention between states that has been ratified by many countries and also applies when goods are delivered across national borders, regardless of where they were ordered or delivered; it prohibits hidden charges not included in price quotes and other unfair trade practices (Hachem,2019).

The UCC allows consumers to accept nonconforming goods and still be able to seek redress for the problems, but the CISG does not.

CISG - consumer protection law, applies when goods are sold across national borders, regardless of where they were ordered or delivered; it prohibits hidden charges not included in price quotes and other unfair trade practices. The goal of the CISG is to protect buyers from being victimized when making international purchases.  UCC - Uniform Commercial Code, an attempt by states to codify consumer protection law (Hillman,2018). The goal of the UCC is to protect consumers from sellers and providers in their home state while ordering goods and services across state lines.

Remedies

The remedies that the CISG provides for breach of contract are that the aggrieved party may either require performance of the obligation, mitigate losses, or claim damages. Often one remedy is more appropriate than another in certain circumstances depending on a variety of factors.

It should be noted that if an aggrieved party has requested performance and it is refused, he or she can also request that damages be paid to him or her for the breach. Likewise, if an aggrieved party has claimed damages but it turns out that these are not actually due because of some defense such as the frustration of purpose then he or she may have to return those amounts received.

2.      Definitions

Fungible goods are goods or objects that are interchangeable with one another and can be used in different combinations to make something else. They can also be used as a measure of value. For instance, if you receive 50 units of a good and you want 5 more units of that good, then each unit has the same value because they are interchangeable with one another. What might be in your possession are two perfectly fungible Coca-Cola cans that were bought on the same day but can’t be mixed together to make a third fully functional Coca-Cola can. A third Coke would not have any value since it could not be consumed by someone else and wouldn’t end up with the individual exchanging it for something else from their supply.

Shipment contract is a form of contract that is used for the transportation of goods by sea. The goods are insured by the insurer and they can be either goods that are being shipped for export or goods which are being imported. The goods that are being shipped will have to be agreed upon on what type of insurance needs to take place, the amount of coverage, and the cargo terms such as in bulk or in containers. Vehicle transport would also need to be arranged on top of this as well. A shipment contract has a standard set of clauses which consist of how it is going to work and also how disputes will be dealt with, these can vary depending on location within different countries.

Destination contract is a type of contract that transfers ownership of a product to the customer. It is a type of contract that is used in the business world when it comes to shipping services. This can be explained as a contract that has been made between a buyer and the seller where the buyer wants to purchase goods and the seller will provide them with these goods. In general, these types of contracts are not limited to just one-time transactions but they may have an impact on future transactions even if they are not specified in this regard.

The risk of loss is the potential that a loss will occur. It is the obligation to take on some risk for an investor. The risk of loss is managed by utilizing stop-loss levels, which are determined by the probability and severity of a loss at each point. Investors may need to put up collateral to finance transactions that have high risks because they don’t have enough capital or assets to cover them in time before they experience negative consequences or losses.

Void title is a legal term that is used to describe a title without an owner. The doctrine of void titles also means that, in the case where there is no owner to a property, an individual can hold possession of the property and can build on it or otherwise use it as they see fit. The void title is thus distinguished from “title subject to an encumbrance”, which means that there are limitations on the use of such properties by those who possess them.

The voidable title is a legal status that can occur during a real estate transaction. The basic concept is that not every title deal, or purchase of a property, is solid all the way through to the registered office. As such, voidable title might be in effect if there are some documents in the transaction that are technically invalid. Essentially, it means that you might have to take back your property from the buyer after a period of time has passed due to them violating some sort of clause in the contract.

Insurable interest is the expectation of financial gain or the requirement to pay a debt. In other words, if an individual has an interest in a piece of property, they are interested in insuring it. In addition to their interest in the property, many companies require their employees to show proof that they have insurable interest (Harnett,2019). Insurable interest can also be present for parents who need life insurance for their children or spouses who need long-term care insurance for a spouse, as well as those who have specific financial needs due to the nature of their occupation. Insurable interest refers to economic gain from something which is being insured by someone else and is available now or sometime in the future. If a person does not have any insurable interest in something, then he cannot be compensated if that thing is damaged or destroyed. For instance, if a car insurance policy holder has no interest in his car, then he cannot collect any amount of money if his car is damaged or destroyed by an accident.

References

Schwenzer, I., & Hachem, P. (2019). The CISG—successes, and pitfalls. The American journal of comparative law, 57(2), 457-478.

Hillman, R. A. (2018). Policing Contract Modifications under the UCC: Good Faith and the Doctrine of Economic Duress. Iowa L. Rev., 64, 849.

Harnett, B., & Thornton, J. V. (2019). Insurable Interest in Property. Ins. LJ, 420.