INSTRUCTIONS TO STUDENT
1. There are four case studies with associated questions. Read the case studies and answer case 1 and choose two other cases between case 2, 3 and 4.
2. Before writing your answers, read the cases and prepare suitable notes to assist you to write succinct and accurate answers. The quality of your answers will be determined on the basis of the completeness of your answer. You will need to identify the relevant legal issues, analyze them from the buyer´s and seller´s point of view, apply the law to the facts of the question and cite relevant case law and statutes to support your answers.
3. Case study 1 is worth 34 marks and case study 2, 3 and 4 is worth 33 marks each. Your task is to answer the question as completely as you can. You are expected to adhere to the word limits.
4. Answers must be written in the Exam Script Book and submitted as a Word file format, (download the Exam Script Book template from your email).

Case 1 International Sales of Goods – Drafting of Agreement

1. Facts
Drop BV, with domiciled registered address in Rogerstraat 125, 6528 BW, AMSTERDAM, The Netherlands, intends through Mr. Jeroen Van Dijk, administrator of the company, to conclude an agreement with Jeddah Sweets Ltd, with domiciled registered address in King Fahad Road 485, RIYADH, KSA, to export sweet and salty liquorice also known as drop.
The drop will have a round shape and the essential ingredients are liquorice extract, sugar and a binder.
Drop BV undertakes to sell an amount of 5.000 sweet drops and 5.000 salty drops for the price of 20 US$ / package of 50 units.
Drop BV will send the drops by ship, to Saudi Arabia under a CFR, before or on the 25th September 2016. Jeddah Sweets Ltd will get delivery of the drops in Jeddah Islamic Port. Drop BV will only sell by way of securing a confirmed irrevocable letter of credit. Jeddah Sweets Ltd will only pay the agreed price after inspection of the goods has taken place within fifteen days after the delivery date.
Both parties have agreed to draft the contract based on the United Nations Vienna Convention on contracts for the international sale of goods (CISG), in case of any dispute shall be tried first to be settled under arbitration, Dutch law and jurisdiction has been agreed to apply as well as Dutch arbitration procedural rules and institution. It has also been agreed that if the dispute could not be settled under arbitration shall be settled under the courts, Dutch law and jurisdiction has been agreed to apply.

2. Questions (34 marks)
Please, draft the agreement between the parties, taking into account that this agreement must be implemented and performed both in The Netherlands and in Saudi Arabia. Include all the possible elements that you can think of that protect at the maximum the interests of both parties. Use the study material, internet resources and all that we have discussed in class during the lectures on the international sale of goods.

Your contract should include the following elements:
1. The parties;
2. Rules on the goods;
3. The performance of the contract by the parties of the seller and of the buyer;
4. Breaches and remedies;
5. The rules on avoidance of contract and damages;
6. The standard provisions.

Case 2 Convention on the International sales of Goods – Case Resolution

1 Facts
Widget Ltd, as the Seller, entered into a contract with Computer Networking Ltd, as the Buyer, for the sale and delivering of 50.000 widgets after the 25th September and before or on the 1st October. Both parties have agreed that time was of the essence. On the 2nd October Computer Networking Ltd sent a telegram to Widget Ltd declaring that the contract is avoided.
Widget Ltd delivers the widgets on the 5th October, but Computer Networking Ltd refuses to accept the goods.

2 Questions (33 marks)
Apply the CISG to the above contract between Buyer and the Seller.
Your analysis and decision need to include the following:
1. Applicability of the CISG;
2. The rules on the goods;
3. Formation of the contract;
4. The buyer´s and seller´s obligations;
5. Analyze the case from the seller´s and buyer´s potential arguments;
6. Remedies of the seller and of the buyer;
7. Lack of conformity of the goods;
8. Avoidance of contract and damages;
9. Defenses;
10. The applicable law and jurisdiction and any other legal elements that you can think of.

Case 3 Transportation of Goods – Case resolution

1. Facts
Seller agreed to ship 300 tons of industrial plastic bags CIF Port King Abdul Aziz , Saudi Arabia, to Buyer in England. Buyer designated the SS Arabia to take delivery at pier 4 in Port King Abdul Aziz. On the agreed date for delivery, Seller cleared the goods for export and delivered the industrial plastic bags to pier 4. As the container began to cross the ship’s rail the cable snapped. The container then fell on the rail, teetered back and forth for a while, and finally crashed down the side of the ship. All of the industrial plastic bags were dumped into the sea. Buyer now sues Seller for failure to make delivery. Is Seller liable?
Suppose, in question 1, the contract had been CPT Port King Abdul Aziz. Would Seller be liable?
2. Questions (33 marks)
Apply the CISG articles to the above contract between Buyer and the Seller. Please make use of the INCOTERMS rules as set out in https://www.searates.com/es/reference/incoterms.
Your analysis and decision need to include the following:
1. Applicability of the CISG;
2. The rules on the goods;
3. Formation of the contract;
4. The buyer´s and seller´s obligations;
5. Analyze the case from the seller´s and buyer´s point of view;
6. Remedies of the seller and/or of the buyer;
7. Lack of conformity of the goods;
8. Avoidance of contract and damages;

9. Defenses;
10. The standard provisions and any other legal elements that you can think of.

Case 4 LETTER OF CREDIT
Case Resolution and Answering to Relevant Questions

1. Facts
A German company has promised to buy goods from a USA Company seller in State S (S. Ltd.). The German company has agreed to secure an irrevocable letter of credit that authorizes payment upon delivery of a clean bill of lading and all the usual export documents. The bill of lading had a notation on it that the goods been shipped had been partially destroyed by water leakage after they were loaded on board the ship.
2. Questions (33 marks)
Apply the Uniform Customs and Practice 600 (UCP 600) to support yoour answers.
1. Describe the stages involved in a documentary credit arrangement.
2. Should the confirming bank pay the seller on the letter of credit?
3. Explain the purpose of having a confirmed irrevocable letter of credit.

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