1. What are 5 steps in negotiating delivery?

(p20)
- Step 1: Timing, step 2: location, step 3:transport, step 4: risk, title and insurance,
step 5: terms of trade.
2. When must delivery take place? (p20)
- The date of dispatch from the factory.
- The date of loading onto a ship.
- The date when the goods should arrive in Esperanza.
3. What is the place of delivery? (p21)
- When the goods are shipped on board in the exporter's country.
4. Why is location important? (p21)
- Because the date of payment normally depends on the place and time delivery.
5. Why is transportation important? (p22)
- Because claims arising from delay or damage can be settled only if it is clear
who is responsible for packing and marking.
6. What are modes of transportation? (p22)
- Sea transport, air transport and Inland transport.
7. Where is the risk often passed from the exporter to the importer? (p22)
- At the point of delivery
8. Where does transfer of ownership take place? (p23)
- At any point between the signature of the contract and final payment for the
goods.
9. How many kinds of delay in delivery? (p25)
- Excusable delay and non-excusable delay
10. What is excused delay? (p20)
- A more serious case such as war, hurricane that effects the delivery, then both
sides must accept that delivery will be late (or may not take place at all).
11. What events does delivery date trigger? (p25)
- Exporter fullfills his primary duties under the contract; Payment may become
due; Risk and title pass to the buyer.
12. How to fix delivery date? (p25)
- Use a straightforward calendar date.
13. When does the contract come into force? (p27)
- When the contract are signed by all parties.
14. When is a contract binding? (p26)
- From the signature date to Date of coming into force.
15. When is a contract binding and effective? (p26)
- After the date of coming into force.
16. In what kind of contract is a cut-off date set? (p26)
- If the contract has not come into force within a certain time, then it becomes null
and avoid.
17. How does the date of coming into affect the delivery date? (p27)
- The delivery date is normally fixed for a certain number of days after the
contract has come into force.
18. What is the grace period?
- A grace period is a time past the deadline for an obligation during which a late
penalty that would have been imposed is waived.
19. What is the grace period used for? (p28)
- To waive the payment of apenalty for a time.
20. What can parties do if the force majuere events continue too long? (p30)
- Either party may on due notification to the other party terminate contract.
21. What are the 3 outcomes of FM?
- Delivery resumes without penalty for the seller; Buyer notifies exporter that the
contract is terminated; Unclear and dangerous situation.
22. What are the two remedies given to the Buyer for any unexcused delay?
- The court may order the exporter to fulfill obligations; The court may require the
exporter to pay the buyer compensatory damages.
23. Which law prefers to award damages? (p32)
- Common-law
24. Which law enforces performance? (p32)
- Civil-law
25. What questions do the courts ask in setting a figure for compensatory
damages for late delivery? (p32)
- Did the loss provably follow from the breach? Was the loss reasonably close to
the breach in the chain of events? Was the loss "mitigated"-in other words, i the
buyer take reasonable steps to keep the loss as small as possible?
26. What are liquidated damages? (p33)
- A lump sum to be paid per day of late delivery.
27. What are penalties? (p33)
- Damages are paid to compensate one party for a loss - a real loss in the case of
compensatory damages, a pre-estimated loss in the case of liquidated damages.
28. Explain the differences between liquidated damages and penalties (p33)
- A fair pre-estimate (liquidated damages); An attempt to terrorize (a penalty).
29. What is quasi-indemnity? (p33)
- An attempt by the exporter to fix a compensation figure so low that, in effect, it
relieves him of reponsibility for late delivery
30. What notation must a Marine Bill of Lading bear? (p50)
- It must bear an indication that the goods have been loaded on board a named
vessel.
31. How can a marine bill of lading be made into a negotiable document? (p51)
- Typing the word "order" in the consignee box makes the bill of lading
negotiable.
32. What are clean shipping documents? (p52)
- The two sides to the contract often agree that the letter of credit will specify
"clauses" that, in their particular line of business, would be unacceptable.


33. What aspects of the goods does the carrier ( the transportation company)
inspect? (p51)
- Packaging and general appearance
34. What defects does the carrier note on the face of the bill of lading or other
shipping documents? (p51)
- If anything is wrong, the carrier notes the deficiency on the face of the bill of
lading or other shipping documents.
35. Which player (exporter or buyer) is responsible for arranging insurance cover
36. Name types of insurance policy
37. What does a Marine Insurance policy cover?
38. What are 3 variables taken into account when setting up the 13 terms?
39. Identify 4 categories in which the 13 terms are grouped
40. What are main functions of ocean BL?
41. What are requirement of BL when payment is made by LC?