www ThiNganHang com Trang 1 Chapter 1 Negotiating Delivery 1 The five steps in Negotiating Delivery To deal with problems arising if there is a delay or if delivery is not as planned the Buyer and the[.]
Chapter 1: Negotiating Delivery The five steps in Negotiating Delivery To deal with problems arising if there is a delay or if delivery is not as planned the Buyer and the Seller should negotiate delivery systematically That means making sure all foreseeable problems are discussed and approaches to solving such problems are agreed An overview of the five negotiating steps is suggested to simplify discussion of the ideas and to avoid problems: Timing, Location, Transport, Risk Title and Insurance, Terms of Trade Timing: When must Delivery take place? - Good negotiators should mention a delivery date in negotiating the timing of an export deal and then other issues relating to coming into force, delay and compensation for delay Delay might be classified into two categories, excusable and non-excusable Excusable one involves a ‘grace period’ and is mostly subject to a force majeure provision Any losses to the buyer caused by non-excusable delay must be compensated The amount of compensation is usually set in advance and called ‘liquidated damages’ - Use a straightforward calendar date to name the delivery date: 15th September 2010, for example The parties often plan for the contract to come into existence in two steps: the signature date and the date of coming into force The date of coming into force is not usually a calendar date, but the date on which the last precondition is met Common preconditions are: + Receipt of import and/ or export approval + Receipt of foreign exchange approval from a central bank + Issuance of a letter of credit or bank guarantee + Making of a down-payment by the buyer + Issuance of an insurance policy + Issuance of a certificate of origin + Delivery by the buyer of plans, drawings or other documentation - Negotiators may agree on a cut-off date: if the contract has not come into force within a certain time, then it becomes null and void Coming Into Force This agreement shall come into force after execution by both parties on the date of the last necessary approval by the competent authorities in the country of the Seller and the Buyer If the contract has not come into force within ninety days of execution, it shall become null and void www.ThiNganHang.com Trang Điều khoản hiệu lực Thỏa thuận có hiệu lực sau thực hai bên vào ngày phê duyệt cần thiết cuối quan có thẩm quyền nước người bán người mua Nếu hợp đồng khơng có hiệu lực vịng chín mươi ngày kể từ ngày thực hiện, trở nên vô hiệu - The delivery date is normally fixed for a certain number of days after the contract has come into force The date of delivery shall be twenty-eight days after the date of coming to force of the contract Ngày giao hàng 28 ngày sau ngày hợp đồng có hiệu lực - Time is of the essence of the contract If the time is not kept, the buyer has the right to return the goods and refuse payment Time is and shall be of the essence of the contract Thời gian vấn đề cốt lõi hợp đồng - Excused Delay and Grace Period: For each week of late delivery the Seller shall pay the Buyer 0.1 % of the contract price Đối với tuần giao hàng chậm chễ người bán phải trả người mua 0.1 % trị giá hợp đồng A grace period is the time exceeding the deadline for an obligation during which a late penalty that would have been imposed is waived If delivery is not effected within one month of the agreed delivery date, then the Seller shall pay the Buyer 0.1 % of the contract price Nếu giao hàng khơng thực vịng tháng kể từ ngày giao hàng thỏa thuận người bán phải trả cho người mua 0.1% trị giá hợp đồng www.ThiNganHang.com Trang Sometimes the exporter can’t deliver the goods on time because of natural disasters called ‘acts of God’, which is unavoidable It is the force majeure, which is negotiable The parties can decide what excuses and what does not excuse the performance in the contract If either party is prevented from, or delayed in, performing any duty under this Contract by an event beyond his reasonable control, then this event shall be deemed force majeure, and this party shall not be considered in default and no remedy, be it under this Contract or otherwise, shall be available to the other party Force majeure events includes, but are not limited to: war (whether war is declared or not), riots, insurrections, acts of sabotage, or similar occurrences, or Government regulations, delay due to Government action or inaction, fire, explosion, or other unavoidable accident, flood, storm, earthquake, or other abnormal natural event Nếu hai bên bị ngăn cản, chậm trễ thực nghĩa vụ theo Hợp đồng kiện ngồi tầm kiểm sốt hợp lý mình, kiện coi bất khả kháng, mặc định bên không xem xét khơng có biện pháp khắc phục, theo Hợp đồng cách khác, có sẵn cho bên khác Sự kiện bất khả kháng bao gồm, không giới hạn: chiến tranh (cho dù tuyên bố chiến tranh hay không), bạo loạn, dậy, hành vi phá hoại, cố tương tự, quy định Chính phủ, chậm trễ hành động hay khơng hành động Chính phủ, cháy, nổ, khác tránh khỏi: tai nạn, lũ lụt, bão, động đất, kiện tự nhiên bất thường khác Force majeure events not include monsoon rains Sự kiện bất khả kháng khơng bao gồm mưa gió mùa If a force majeure condition continues for long time, contracts may regulate the force majeure period, in particular the right of one or both parties to terminate the contract If either party is prevented from or delayed in, performing any duty under this Contract, then this party shall immediately notify the other party of the event, of the duty affected, and of the expected duration of the event If any force majeure event prevents or delays performance of any duty under this Contract for more than sixty days, then either party may on due notification to the other party terminate this Contract Nếu hai bên bị ngăn cản hay chậm trễ thực nghĩa vụ theo Hợp đồng này, bên thông báo cho bên kiện, nghĩa vụ bị ảnh hưởng, thời gian kéo dài dự kiến kiện www.ThiNganHang.com Trang Nếu kiện bất khả kháng ngăn cản trì hỗn việc thực nghĩa vụ theo Hợp đồng sáu mươi ngày, hai bên sau thông báo cho bên khác chấm dứt Hợp đồng Three outcomes of force majeure: resumption of delivery, termination of the Contract, unclear and dangerous situation - Unexcused delay and Buyer’s Remedies: when delivery cannot take place as planned, this causes some loss or damage to the Buyer There are two remedies: a decree of specific performance orders the exporter to deliver or an award of damages makes the exporter pay compensation to the Buyer In addition, the court may allow the Buyer to cancel the Contract - Liquidated Damages: is a lump sum to be paid per day, week or month of late delivery for compensation Payment of liquidated damages avoids expensive discussion Even if the Buyer’s losses are lower or higher than anticipated, nothing changes The exporter pays the agreed sum, and the matter is settled Liquidated damages are enforceable everywhere but subject to increase or decrease in some legal systems - Penalties: is the amount to be paid for late delivery It is used as a threat of punishment to achieve acceptable performance and is not enforceable in English law or other common law systems - Quasi-indemnity: is to relieve the exporter of liability for delay in delivery It is enforceable everywhere but open to challenge as ‘unconsionable’ Liquidated Damages If the Seller fails to supply any of the Goods within the time period specified in the Contract, the Buyer shall notify the Seller that a breach of contract has occurred and shall deduct from the Contract price per week of delay, as liquidated damages, a sum equivalent to one half percent of the delivered price of the delayed Goods until actual delivery up to a maximum deduction of 10% of the delivered price of the delayed Goods Thanh khoản thiệt hại Nếu người bán không cung cấp hàng hóa khoảng thời gian quy định hợp đồng, người mua phải thông báo cho người bán vi phạm hợp đồng xảy khấu trừ giá hợp đồng tuần trì hoãn, làm thiệt hại khoản, khoản tiền tương đương với nửa phần trăm giá giao hàng hóa bị chậm chễ hàng thực tế lên đến mức khấu trừ tối đa 10% giá giao hàng hóa bị chậm chễ www.ThiNganHang.com Trang Place of delivery: is the point at which the exporter passes responsibility for the Goods to the Buyer Delivery can take place at a number of places between manufacturer’s factory and the Buyer’s warehouse A contract for the sale of Goods abroad (transportation by ship) is normally considered as an FOB (Free on board) contract: delivery takes place when the Goods cross the rail of the ship nominated by the Buyer Another is CIF, the exporter pays the full costs plus the freight charges plus insurance up to the named place of destination, usually a port Delivery of the Goods shall be made FOB (Mombasa) Giao hàng thực theo giá FOB Mombasa Delivery of the Goods shall be made CIF Durban Giao hàng thực theo giá CIF Durban Delivery of the Goods shall be made (Incoterm) The schedule date of Delivery shall be (date of delivery) Risk and title to the Goods shall pass from the Seller to the Buyer on Delivery The place of Delivery under this Contract is (port of shipment) Giao hàng thực (Incoterm) Ngày giao hàng theo lịch trình (ngày giao hàng) Rủi ro quyền sở hữu hàng hóa chuyển từ người bán đến người mua giao hàng Địa điểm giao hàng theo Hợp đồng (cảng giao hàng) If the vessel named by the Buyer fails to arrive on or before the agreed delivery date, then the seller may at his discretion deliver the Goods to a bonded warehouse in the port of Mombasa, and shall be deemed to have fulfilled his delivery obligations under this Contract Nếu tàu định người mua không đến vào trước ngày giao hàng thỏa thuận, bên bán theo suy xét giao hàng hàng hóa đến kho ngoại quan cảng Mombasa, coi hoàn thành nghĩa vụ giao hàng theo hợp đồng Transport - Negotiators should mention the type of packaging and the shipping marks in the Contract Goods are to be packed in new, strong, wooden cases suitable for long-distance ocean transport www.ThiNganHang.com Trang ... (Incoterm) The schedule date of Delivery shall be (date of delivery) Risk and title to the Goods shall pass from the Seller to the Buyer on Delivery The place of Delivery under this Contract is... that would have been imposed is waived If delivery is not effected within one month of the agreed delivery date, then the Seller shall pay the Buyer 0 .1 % of the contract price Nếu giao hàng không... khấu trừ tối đa 10 % giá giao hàng hóa bị chậm chễ www.ThiNganHang.com Trang Place of delivery: is the point at which the exporter passes responsibility for the Goods to the Buyer Delivery can take