GROUP ASSIGNMENT

INTERNATIONAL SALE CONTRACT

IBC09 – K42
Members:
1. Trương Công Huy Hoàng
2. Trần Hồ Đức Huy
3. Nguyễn Lê Mỹ Linh
4. Tạ Nhật Nam
5. Lê Quỳnh Giảng Nguyên
6. Đoàn Đức Tâm
7. Huỳnh Thị Thảo
8. Bùi Lê Bích Thương
9. Đỗ Anh Tú
10. Nguyễn Thị Hà Vy
Question 1: Analyzing the error and missing of the sale contract
SALE CONTRACT
Date: 6/ 9/ 2018
➔ Error: Date format has to be clear and exact.
Party A: ABC Trading Co., Ltd (Vietnam)
Hereinafter referred to the Seller
Party B: NZ Co., Ltd (Japan)
Hereinafter referred to the Buyer
➔ Missing:
- The sale contract number
- The party A: address, phone number, fax, represented by
- The party B: address, phone number, fax, represented by
❖ Missing some parts of the sale contract such as Packing and marking, Inspection, Insurance,
Arbitration, Force majeure, Others.
Both parties have agreed to sign the contract with the following terms and conditions:
1. Commodity: Coffee
➔ Error:
- The name is too short and not clearly or exactly described according to technical or commercial
name.
➔ Missing:
- Technical and commercial name
- Name of manufacturer
- Origin country
2. Quality: As shipment in last month
➔ Error:
- The method to describe the quality of goods is not specifically determined by one of five
methods.
➔ Missing:
- The details of the quality of goods
3. Quantity: 1.500 T more or less 5%
➔ Error:
- Use “,” instead of “.” (1,500 not 1.500)
 - Change T into MT
➔ Missing:
- The term at the buyer’s or seller’s option
4. Price: USD 1.400/MT FCA or CIF
➔ Error:
- Use “,” instead of “.” (1,400 not 1.400)
- Choose one of the two terms (FCA or CIF)
➔ Missing:
- Incoterms version, departure port or named place of delivery
- Total amount, Price in words
5. Payment: by L/C or D/A
➔ Error:
- Choose one of the two methods of payment (L/C or D/A)
- The payment is not specifically explained (example: kind of L/C, name of issuing bank and
advising bank, documentary included…)
➔ Missing:
- Currency of payment
- Time of payment
6. Shipment: Delivery of goods will be made CFR. Delivery will be not later than 3/9/2018.
➔ Error:
- The term of delivery is written incorrect
- Date format has to be clear and exact
- There is an incongruity between the date of sale contract and the date of delivery. Delivery
period must be later than the effective day of the contract.
➔ Missing:
- Destination of delivery
- Notice of delivery
- Others
7. Shipping documents: The buyer will present following documents:
- Proforma Invoice
- Certificate of Quantity and Quality issued by buyer
- Bill of Lading marked "Freight prepaid or to collect at destination” made out to order of any
bank.
- Certificate of Insurance
- Certificate of Origin form D
➔ Error:
- Proforma invoice is not right (change to Commercial invoice)
- Certificate of Quantity and Quality is not issued by buyer (must be issued by seller)
- Bill of Lading’s marking is not determined clearly (Choose one of the two kinds)
- Both parties agreed to apply CFR term for shipment, so Certificate of Insurance is not required
- Certificate of origin’s form is wrong because form D is used for buyers in Southeast Asia, but
the buyer comes from Japan.
➔ Missing:
- The specific bank
- Content of insurance certificate
- Packing list
- Number of the copy of documents
8. Effective date: The contract will come into force from 6/9/2018.
➔ Error: Date format has to be clear and exact.
❖ Lack of both parties’ signatures
Question 2: Rewrite the sales contract with payment by L/C
SALES CONTRACT
No. 157
th
Date: 6 September 2018
Party A: ABC Trading Co., Ltd (Vietnam)
Address: No. 123 Tran Hung Dao Street, District 5, Ho Chi Minh City
Tel: +84 3357766
Represented by
Hereinafter referred to the Seller
Party B: NZ Co., Ltd (Japan)
Address: 4 – 12 – 16 Nagatacho, Chiyoda-ku, Tokyo
Tel: 00 81 3 7543456
Represented by
Hereinafter referred to the Buyer
Both parties have agreed to sign the contract with the following terms and conditions:
1. Commodity: Vietnam Robusta Coffee
2. Quality: According to sample in last month (sample No. 2435) agreed by both parties
3. Quantity: 1,500 MT more or less 5% at the Seller’s option
4. Packaging: The goods to be packed in the Manufacturer’s Standard Export Packing
5. Price:
- Unit price: USD 1,400/MT CIF Tokyo Port, Incoterm 2010
- Total amount: 1,400 X 1,500 = USD 2,100,000 +/ - 5%
- In words: Two million one hundred thousand United State Dollar
6. Payment:
- Payment by irrevocable L/C at sight for 100% of invoice value within 30 days from Bill of Lading
date, in favor of the seller
- Issuing bank: Tokyo Commercial Bank
- Confirming bank: Vietcombank, Ho Chi Minh City
- Currency: USD
7. Shipment:
- Delivery of goods will be made CFR.
- Time of delivery: Not later than 9th September 2018
- Port of loading: Saigon Port, Vietnam
- Port of discharge: Tokyo Port, Japan
- Partial shipment: Not allowed
- Transshipment: Not allowed
8. Shipment documents:
- Commercial invoice signed by the seller in 02 originals and 02 copies
- Certificate of Quantity and Quality issued by the seller in 02 copies
- Full set clean Bill of Lading marked “Freight prepaid” and made out to order of Tokyo Commercial
Bank
- Packing List signed by the seller in 02 originals and 02 copies
- Certificate of Origin form VJ in 02 copies issued by The Import and Export Management Office
of The Ministry of Industry and Trade
9. General terms:
- The contract will come into force from 6th September 2019.
- This contract is made in four (04) copies. Each party keeps two (02) copies of contract having
equal value.
FOR THE SELLER FOR THE BUYER
(signed) (signed)