Dịch hợp đồng - Question and Answer

Question Review


Question 1
Explain the differences between liquidated
damages and penalties ?
LD: Purpose: To compensate the buyer fairly
for any delay in delivery
Enforceable everywhere
Penalties: Purpose: To terrorize the exporter
into punctual delivery


Question








What is a guarantee? Name at least three
types of guarantees.
Guarantee is a (written) promise by the
Guarantor to pay money to the beneficiary if
the principal breaks its promise. OR,
A guarantee is a promise about somebody
else’s performance.
Types of guarantees (name three out of four):
Payment Guarantee, Tender Guarantee,

Performance Guarantee, Prepayment


Question






Name three types of defect and two common
exclusions of defect.
Three types of defect: Defective
workmanship, defective materials, and
defective design.
Two exclusions: Fair Wear and Tear, and
Misuse


Question






How do the Anglo-American law systems differ
from the Continental law systems in terms of
predictability and consistency?
AA law systems: unless matters are carefully

regulated in the contract, the decision of the
judge is not fully predictable. Different judges
may give widely different judgments.
CL systems: the most difficult cases are
predictable with some accuracy. Decisions are
generally consistent from court to court.


Question








Briefly describe the parties involved in the
issuance of an L/C
Applicant: the Buyer in an export contract
Beneficiary: the Seller in an export contract
Issuing bank: the Buyer’s bank in the
importing country
Advising bank: the Seller’s bank in the
exporting country.


Question




What is Eternal warranty and what are its
possible problems?
An endlessly renewed liability for defects.
The exporter cannot break the chain of
warranty and is involved in endless
responsibility for the goods.


Question







What are the similarities and differences
between arbitration and litigation processes?
Both are mechanism for settling disputes
Litigation: public, expensive, time-consuming,
results are legalistic rather than business-like
Arbitration: quicker than litigation, costs are
foreseeable








What are the 3 outcomes of Force Majeure?
Resumption of delivery
Termination of contract
Unclear and dangerous situation.








What does the insurance premium depend
on?
The type of the goods
The creditworthiness of the buyer
The stability of the buyer’ country and so on





When does termination happen to contracts?
Termination occurs when either party
pursuant to a power created by agreement or
law puts an end to the contract otherwise
than for its breach. / (one party bases on the
agreement or law to end the contract.

Question




When is delay in payment excused?
What are implied warranties?
When can either party to contract terminate
the contract?


CHAPTER: II
Q&A
1.Why

is payment in international trade tightly
controlled?

13


CHAPTER: II
Q&A
1.Why

payment in international trade tightly
controlled?
-Trust is rare

-Court is far away and unpredictable

14


CHAPTER: II
Q&A

2.What are the common methods of payment
in international trade?

15


CHAPTER: II
Q&A

2.What are the common methods of
payment in international trade?
- Open account with no security
- Open account with secured by export
credit insurance
- Open account with secured by
payment guarantee
-Payment by letter of credit
16


CHAPTER: II
Q&A

3. What are methods of payment in
small purchases?

17


CHAPTER: II
Q&A

3. What are methods of payment in
small purchases?
-Cash on delivery
-Cash against invoice
-Cash with order

18


CHAPTER: II
Q&A

4. What are payment insurances?

19


CHAPTER: II
Q&A

4. What are payment insurances?
-Bank guarantee.
-Export credit insurance

20


CHAPTER: II
Q&A

5. Who can offer bank guarantee?

21


CHAPTER: II
Q&A

5. Who can offer bank guarantee?
- A bank

22


CHAPTER: II
Q&A

6. Who can offer export credit
insurance?

23


CHAPTER: II
Q&A

6. Who can offer export cerdit
insurance?
- An insurance company.

24


CHAPTER: II
Q&A

7. Who can offer export credit
insurance?

25