International TRADE LAW : Final - Case Study Example

By legal provision, persons signing the contract must be direct signatories in the registration of the business or with proof of other forms of ownership1. Currently, Mr. Dupoong who is representing the supplier is identified as a signatory as he is the Deputy Managing Director and witness at the registration of the company. There are clearly identified liabilities as part of the negotiations on the defaults that the supplier will bear in case of breaches. Such liabilities clearly reduce the risk on the part of the buyer in receiving poor service delivery from the supplier.

However, this could have been a generalized commitment binding the supplier to the entire contract rather than isolating delays in supplies. The current contract lacks confidentiality in principle; or on the face of the contract. This is because no part of the contract makes room for any binding notations in terms of confidentiality. There were a number of options available including non-disclosure agreement but no such clause was found. This is a risk to the buyer as there could be leakage of information leading to information asymmetry problems2.

There are no identified pre-contract personalities in the contract. However, it is expected that the two people who acted on the part of suppliers and buyers would take this responsibility. Factors necessitating the need for the contract Under the existing contract, the company’s main interest is to have a sale of goods agreement implemented and executed by the supplier. As part of provision of a sale of good agreement, the supplier is committed to conform to a contract of sale as provided in UN Convention on contracts for the international sale of goods, commonly referred to as convention de vienne3.

It would be note that for the current case, the supplier is identified as the vendor and therefore has a number of obligations that he must address as part of the contract. One of these is the need to deliver the goods by making the products available so that the buyer can be handed the legitimate accreditation as the new owner of the goods. Once this is done, there will be the issuance of an official document, which is most preferred to be an invoice and export declaration. Just as the roles of suppliers have been identified above, buyers also have their own roles to play.

For instance the buyers have a commitment to monitor the successful implementation of the various processes in the sale of goods agreement. Based on the roles identified, the scope of work can be stated as involving supplies, which is expected to be made mainly through procurement processes to be effected by the supplier. The documents that are found in the scope of the contract therefore include a technical proposal, signed contract, appendixes of various aspects of breakdown of the contract, and general conditions.

Identification and assessment of the risks in the contract The nature of contract that is being entered right now involves civil liabilities rather than criminal liabilities. It would be noted that in the case of civil liabilities, compensation is the most preferred form of civil damage that is leveled against breaching parties. In light of this, the