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austingraves324 asked for the first time
in Law·
31 Jan

INTERNATIONAL TRADE LAW 

please quickly thanks !

New Metro Supermarket is a buyer who wants to purchase a cargo of organic white rice from Fairness and Equality (F&E) company. The F&E company agreed to sell rice to New Metro Supermarket by sea freight under a contract of sale based on the FOB terms. According to the terms of the FOB contract, the seller and buyer agreed to conduct a business deal with 1000 bags of organic white rice. Moreover, both parties have decided to arrange shipment at the beginning month of December which is dated 1-5 December 2022, and the buyer then demanded the whole 1000 bags of rice would be received on 20-25 December 2022. 

After signing the contract, F&E company made the proper inspection of the rice to ensure the product met the specifications before loadings. However, the seller failed to guarantee the shipment on time due to the buyer being delayed providing the seller instructions with the shipping information arrangements for loading although the seller has repeated reminders. 

This action has also delayed the vessel's arrival at its final destination, Begawan Port. After that, the buyer received the organic white rice on 2 January 2023 and the shipment  was delayed about 1 week. After ship unloading the goods, the buyer inspected the 1000 bags of rice in the Begawan port, and they found that five bags of rice had been damaged by rats.  

The buyer is dissatisfied with the goods and refuses payment for these damaged goods. Ultimately, the buyer only accepts the 995 bags of organic white rice. However, after three days, the buyer suddenly claimed that the 10 bags of rice were off specifications because these bags of rice were mouldy and therefore the rice did not reach the quality requirements in the contract. The buyer was disappointed and rejected the shipments.

Therefore, the buyer filed a lawsuit against the seller accused of violating the implied provisions of the contract. The buyer wants to claim that the seller should pay compensation because of the late shipment and poor quality. Discuss the following issues:

1. Whether the buyer breaches the contract of sale and needs to bear the risk and cost of the delayed shipment.
2. Whether the legal title to the goods had passed to the buyer upon the shipment.
3. Whether the buyer was entitled to reject the goods after a few days of delivery.

 

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