This Study Resource Was

1. Both Australia and Singapore are common law countries.
Singatron and
Semicontronics conclude their first round of negotiations with a Letter of
Intent (LOI). If the deal falls through, will either party be bound to its
commitments as detailed in the LOI? What can the parties do to limit the
obligations to the terms of the LOI?
No, the letter of intent is not legally binding on all sides.

The LOI is not a contractual document in common law and thus the parties are
not obliged to agree to discuss together with any of the provisions found therein.
A letter of intent means that the sides are moving on a definitive legal deal and
are meeting to address problems, best standards and desires in "good faith."
The parties should explicitly state in the letter of intent that all communications
are "exploratory" and subject to final approval by the supreme legal authority by
m
er as
all parties to restrict commitments to the letter of intent.
co
eH w
No, the letter of intent is not legally binding on all sides.
o.
The LOI isn't a contractual document in common law and thus the parties don't
rs e
seem to be obliged to conform to discuss along with any of the provisions found
ou urc
therein. A letter of intent implies that the sides are moving on a definitive legal
deal and are meeting to handle problems, best standards and desires in "good
o
faith."
aC s
The parties should explicitly state within the letter of intent that all
v i y re
communications are "exploratory" and subject to final approval by the supreme

legal authority by all parties to limit commitments to the letter of intent.
ed d
If not properly mitigated before commencing business are the following:

ar stu
Copyrights: there's a risk of patent theft as Semitronics exposes Singtron to a

replacement innovation and Singtron is raring to become a pioneer in next
generation computer chips. This that still steal the ideas for winning market
sh is
share which may be a big risk.

Th
Patents: Ensuring that patents are in situ is vital because Singtron is again very
young and seeking to realize greater market share in Singapore.
Integrated circuit design: TRIPS for A component offers 10 years of security in
its final or intermediate state when it (or a minimum of one in every of its
components or interconnections) is a component of / connected to a bit of
material designed to perform an electronic feature. TRIPS adds to the present
WIPO agreement, and now there's protection for 10 years
2. List ten areas of consideration Semicontronics should include in its
contract to have Singatron manufacture computer chips.
This study source was downloaded by 100000827297591 from CourseHero.com on 11-16-2021 12:21:56 GMT -06:00
https://www.coursehero.com/file/78016891/Answerdocx/
1.Quality specifications and control
2. Price (including currency and exchange rate)
3. Delivery
4. Documents (all expected documents and when to receive them including
permits)
5. Packaging/ labelling requirements
6. Applicable laws and jurisdiction
7. Taxes (including export and import fees)
8. Warranty and product liability
m
9. Insurance and disaster recovery plan
er as
co
10. Dispute settlement
eH w
o.
rs e
I also believe clauses such as, force majeure, termination for default insolvency
ou urc
or bankruptcy, as well as imitation of liability should be included in the list.
o
aC s
3. Semicontronics’ manufacturing plant in Brazil is not suitable to fulfill

v i y re
the Phoneson contract for computer chips, so a new contract must be

arranged for the transportation of computer chips from Singapore to
Phoneson’s assembly plant in Japan.
ed d
a. Which of the three parties is responsible for the transportation?

ar stu
b. In addition to contractual issues such as timelines, payments and

packaging, list at least two issues Singatron lawyers should consider to
sh is
reduce risks associated with transportation delays or losses when

contracting a third party for transportation.
Th
Semitronics is looking to subcontract the work to Singatron which means the

delivery obligation will be seen by the judging Incoterms. It is the duty of
Semitronics to ensure that the contract with Singatron includes an Incoterm
decided upon because Semitronics has the initial contract and is not in touch
with the third party carrier. This is Singatron and the logistics contractor third
party's obligation to have their own independent carriage deal detailing
incoterms, obligations, aspirations and threats. The contract is nessassary for
both parties to determine their rights and responsibilities.
Since incoterms do not apply to third parties, distribution conditions must be
defined separately in the carriage contract with respect to when, where, and how
to transport the fine. The primary contract between Singatron and Semitronics
will direct who is responsible for shipping the products to Japan's destination,
since Semitronics is pursuing a subcontractor rather than Phoneson.
The carrier contract will direct each party's obligations and their accountabilities
and it is specified on the carriage lading bill and contract. The lading bill would
find the carrier liable in the case of negligence or any malicious issues. The
BOL asks for the title of products as paper. If the items are transported in proper
condition, the liability and title are lawfully transported. The BOL further
specifies the location of pick-up, shipping process, timetable and deadlines for
distribution. Please note that the BOL restrains the carrier's responsibility.
Because the BOL reduces the carrier's responsibility, the highest concern is
protection on the products. Lawyers should ensure that the appropriate liability
m
er as
policy is carried out for the insurer to adequately protect the items before the
co
company took over the merchandise. This is the only way the exporter has any
eH w
chance of retrieving all the costs involved with the products that could be
o.
destroyed, lost or stolen. rs e
ou urc
An added protection is a damaged goods clause and liability limitation
provision which prevents Singtron from potentially damaged goods.
o
Lawyers should qualify for a bonded carrier, or safety warranty. This helps
aC s
Singtron to cash in on a loan in case of problems relating to distribution.

v i y re
4. What are some IP areas that can be at risk for infringement for
ed d
Phoneson and Singatron if not properly mitigated?

ar stu
If not properly mitigated prior to commencing business are the following:

sh is
Copyrights: There is a risk of patent theft as Semitronics exposes Singtron to a

Th
new innovation and Singtron is eager to become a pioneer in next-generation

computer chips. This that continue to steal the ideas for winning market share
and that is a big risk.
Patents: Ensuring that patents are in place is important because Singtron is again
very young and seeking to achieve greater market share in Singapore.
Integrated circuit design: TRIPS for A component offers 10 years of security in
its final or intermediate state when it (or at least one of its components or
interconnections) is part of / connected to a piece of material designed to
perform an electronic feature. TRIPS adds to the existing WIPO agreement, and
now there is protection for 10 years.
Ans 1 : The following are the considerations semicontronics should include in

their contract to have Singatron manufacture computer chips :
1. Unit Price
2. Material Cost
m
er as
co
eH w
3. Intellectual property - clauses such as ownership or licensing of IP for the
o.
purposes of manufacturers. rs e
ou urc
4. Design of product.
o
aC s
v i y re
5. Forecast demand
ed d
6. Volumes that would be produced

ar stu
7. Builds standards
sh is
Th
8. Inventory Management
9. Quality control Standards
10. Mode of Payments.
Ans 2 : The most important infringement of intellectual property is due to the
Intengibility of it. In the case of Phoneson & Singatron the design of the
product, can be infringed by Singatron. Whereas, Phoneson can infringed the
method of production of singatron.
m
er as
co
eH w
o.
rs e
ou urc
o
aC s
v i y re
ed d
ar stu
sh is
Th
Powered by TCPDF (www.tcpdf.org)

This Study Resource Was

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

This Study Resource Was

Uploaded by

Copyright:

Available Formats

1. Both Australia and Singapore are common law countries.

No, the letter of intent is not legally binding on all sides.

communications are "exploratory" and subject to final approval by the supreme

If not properly mitigated before commencing business are the following:

Copyrights: there's a risk of patent theft as Semitronics exposes Singtron to a

share which may be a big risk.

3. Semicontronics’ manufacturing plant in Brazil is not suitable to fulfill

the Phoneson contract for computer chips, so a new contract must be

a. Which of the three parties is responsible for the transportation?

b. In addition to contractual issues such as timelines, payments and

reduce risks associated with transportation delays or losses when

Semitronics is looking to subcontract the work to Singatron which means the

Singtron to cash in on a loan in case of problems relating to distribution.

Phoneson and Singatron if not properly mitigated?

If not properly mitigated prior to commencing business are the following:

Copyrights: There is a risk of patent theft as Semitronics exposes Singtron to a

new innovation and Singtron is eager to become a pioneer in next-generation

Ans 1 : The following are the considerations semicontronics should include in

6. Volumes that would be produced

9. Quality control Standards

10. Mode of Payments.

You might also like