CHAP1: INTERNATIONAL SALES OF GOODS

Inter business ​→ broader, any kinds of bus acty, enter foreign markets,
cover many laws (domestic, international, custom)
→ an inter trade procedure that includes ​production,
distribution, service, ​and other inter acty ex. Foreign investments,
merger and acquisition, inter intellectual property, inter tech transfer

VS

Inter trade​ → import and export (มี inter payment and insurance)
→ procedure of ​purchasing​ and ​exchanging​ goods and services btw คนใน
different state. Usually involves carriage of goods from 1 to another country

รู้ ไดไ้ งวา่ inter bus??

General characteristics of inter bus
1. Different currency
2. Active movement of factor of production (land, labor, capital, entrepreneurship)
3. Enormous bus scale (both size and value)
4. Encounter various market policies
5. Encounter different cultures and political systems
6. Encounter different bus practices

3 major forms of inter bus/ 3 important methods to enter foreign markets

1. International trade - exchange services/ import,export goods
2. Tech transfer (licensing agreement)
a. Copyright, patent, trademark
b. Intellectual property
c. Franchise and etc
3. Foreign investment

Laws related to inter bus

1. Private inter trade law (commercial law)
= rights and obligation of the party
2. Public economic law ​(states regulation)
= gov must intervene → gov stipulate the right and obligation btw gov and private sector
mostly about ​inter trade policy​ to protect, help, and regulate private sector
3. Public inter trade law
= when the country enters the inter stage by..
- being member of the inter org
- party of the inter agreement both bilateral and multilateral

International sales of
goods
When buyer from CH enter into contract with seller from USA = inter sales of goods contract

◦ ​have to deliver across the ocean​ → who pay for shipping? Who responsible for damage?
‣That’s why we have the ​carriage of goods law​ to protect between the parties
‣Parties have to buy insurance — ​marine insurance act​ to overcome dispute and
problem between sellers and buyers
◦ ​argue about the money​ → seller อยากไดต ่ น buyer อยากไดข้ องกอ
้ ั งกอ ่ น
‣​letter of credit​ (documentary payment): the uniform customs and practice for
documentary credit no. 600
◦ ​argument about other problems​, they will bring the dispute to the court,
to the litigation, to the arbitrator depending on what they argue on in the contract
‣ Many laws will be involve

Legal principle of contract

● Freedom of contract ​-- “mutual agreement”
Have free choice to enter into a contract with ANY PERSON
Have freedom to determine contract’s CONTENT
● Privity or Sanctity of contract
a contract cant confer rights or impose obligations on any person except the parties
= only parties should be able to sue, exercise their rights, claim damages
*** gov or 3rd party cannot intervene ***

International sales
General themes
Considerations…
 ● Risk
○ IDENTIFY risk so you know how to AVOID, ALLOCATE, and MITIGATE
○ Risk cannot disappear completely but can reallocate
● Roles of party autonomy
= self arrangement of legal regulations by parties according to their will
= if 2 parties sign the contract, they have agreed to it and its provision in the exercise of
parties autonomy
= คลา้ ยๆ freedom of contract but not 100% free มี boundaries ดังนี้ ...
○ if contract against law → cannot agreed
○ One party is incompetent or minor → มีlimitations
○ National security and public moral → contract ตอ ้ งไม่ against public moral
○ Good faith
● Choice of laws
= choose particular law to govern the contract to reduce cost of uncertainty
● Relationship with the forum
= เลือกศาลเมื่อมี dispute
● Money
= agree on currency → reduce problems and can predict the outcome and stability

Legal regulations
● Thailand Civil and Commercial Code: domestic law
● United Nations Convention on Contracts for the International Sales of Goods
(Vienna,1980) - ​CISG/Vienna convention
● International Rules for the Interpretation for Trade Terms
Ex. INCOTERM 2000,2010
= tell when seller obligation finish (seller obligation to load on the boat)
● The Sales of Goods Act 1978
Some adopt this as commercial law

United Nations Convention on Contracts for the International Sales of Goods

CISG
Drafted to avoid 2 major problems
1. Conflict of law (uncertainty, unpredictability)
2. Function and nature of sales law are viewed differently in the different ecosystem

What is it?
● Widely implemented convention in the areas of ​inter private law​ and law of inter
commerce
● Called as “Uniform Law” → must be identical and substantially similar tax
● A binding inter treaty, setting out a code of rules that governs contract for the inter sales of
goods (เป็ นinter law จะไม่ replace domestic law)
● Most countries had ratified(confirmed) the CISG
○ UK, TH ยังไม่

General Applicability
● CISG only applies to signatories/members
 ● Domestic VS CISG
○ ถา้ มี conflict กันให้ตามCISG กอ ่ ีมาตราไหน relevant คอ่ ยตาม domestic
่ น, ถา้ ไมม
● If CISG doesn’t apply to the issue, then governed by national law
● Does NOT require contracts to be evidenced in writing

Parts
CISG consists of 4 parts:
I. Articles1-13: Sphere of application and general provision
II. A14-24: formation of the contract
III. A25-88: sales of goods (obligations of the seller/buyer, passing of risks)
IV. A89-101: Final Provisions (ไมเ่ รี ยน)

PART I CISG “Sphere of Application”

เงื่อนไขที่จะผา่ น CISG ตอ ้ งผา่ น…
Step #1​ ​Article 1​ - ​Basic Scope of CISG
● Applies to contracts of sales of goods btw parties whose ​places of bus are in different
states
○ Article 10​ The Place of Business For the purposes of this Convention:
(a) if has ​more than one place of business​, the place of business is that which
has the ​closest relationship to the contract and its performance​, having regard to
the circumstances known to or contemplated by the parties at any time before or at
the conclusion of the contract; ​→ to prevent either side to change place of
business in order to make CISG applicable or inapplicable
(b) if a party​ does not have​ a place of business, reference is to be made to his
habitual residence
● Applies to contracts of sales of goods btw parties whose ​places of bus are in different
states
○ (a) when the States are ​Contracting States​; ต ​ อ
้ งอยูใ่ น CISG or
○ (b) ​Opting in​ (modify choices of law) or ​Opting out​ (Choose to exclude CISG)

Illustration:​ “when rules of private inter law lead to the application of the law of a
contracting states” → ไมไ่ ดอ ้ ยูใ่ น CISG but the private laws are saying so

Buyer brings an action in state B (their home land). The court said that I don’t
know what to do then maybe if you should use the law of the state where the contract
breached, which is CISG → applicable
 ○ NOTE: ​Article 95​ (a reservation with respect to art 1(1)(b)) = allows a state to
declare that it will apply CISG only when the buyer and seller are both from
contracting states
→ ถา้ มีอันนี้ state ไวด ้ B จะ not exist
้ ว้ ย ขอ

Step #2​ ​Article 2​ - ​Exclusion from scope of CISG

● This convention​ does not apply to​ sales:
○ (a) of goods bought for ​personal​, family, household use, unless the seller neither
knew nor ought to have known (b4 or at the conclusion time); → เป็ น consumer
goods
○ (b) by ​auction​;
○ (c) on execution or otherwise by ​authority of law​; → ขายเพราะ bankrupt
○ (d) of ​stocks​, shares, investment securities, negotiable instruments or money;
○ (e) of ​ships​, vessels, hovercraft or aircraft; (movable, tangible)
○ (f) of ​electricity
● What about intangibles?? = ไมไ่ ดพ ้ ูดถึง เป็ นหน้าที่ของlawyer

Step #3​ ​Article 3​ - ​further exceptions

● (1) assembly contracts for the supply of goods to be manu or produced wherein the ​buyer
provides a “SUBSTANTIAL part of the materials necessary for such manufacture and
production”​ ​(French version: “components essentials to the manu of a product”)
**แลว้ แตเ่ คส → CISG ใชไ้ ดเ้ มื่อ purpose ของ buyer คือ buy > hire
Party อาจจะตอ ้ ง show วา่ supply อะไร สาํ คัญแคไ่ หน เพราะjudge ยาก
xx ถา้ provide whole important part = hire xx

● (2) contracts that are in ​“preponderant part”​ for the supply of labor or other services
 Criteria พิจารณาเวลาสอบ
○ Which one do buyers consider more - services or goods?
○ Obligations in the contract whether services dominate sales of goods or not
่ rovide service จะทาํ ให้ไมเ่ กิด contract ขึ้น
แบบถา้ ไมp
○ Value of labor of installation amount to small or big part of total value of contract
○ Main interest of buyer

How to measure ​preponderant​?

Article8 -​ Interpreting the Statements and Conduct of the Parties
(1) Party’s ​intent
(2) If intent not clear, look at “the statements and conducts of a party according to a
reasonable person standard​”

Step #4​ ​Article 4 -​ issues governed by CISG

● CISG ​cares
○ Formation​ of contract
○ Rights and obligations​ of the seller and the buyer arising from such contract
+remedy available
● CISG ​does NOT care
○ Validity​ of contract/provision/usage
Ex illegal goods (pornography, drugs) or Competency of parties
→ since it treats differently in each country, then ให้เป็ นเรื่ องของ domestic law
○ Effect​ which the contract may have on the property in the goods sold
Article 5​ - this convention does ​not​ apply to the liability of the seller for death or personal
Caused by the goods to any person
Ex. ขายสารเคมี หลังจากbuyer รับไปแลว้ สารเคมีระเบิด warehouse เสียหาย buyer บาดเจ็บ
“CISG ไมเ่ กี่ยว” ให้เป็ นเรื่ องของ product liability ที่ B ตอ
้ งprove วา่ นี่ เกิดจากสินคา้ defect

Step #5​ ​Article 6 -​ Derogation

● Parties may exclude CISG or derogate(lessen) from vary effect of any of its provision
○ Completely opt out of CISG
○ Derogated from specific provisions

PART II CISG “Formation of the Contract”

If the contract formed, there would be rights and obligations btw buyer and seller
ดูยังไงวา่ offer or proposal??
Article 14​ - ​Offer
● Considered as an ​offer​ when…
○ Addressed to one or more ​specific persons
○ Sufficiently definite (clear and certain enough to understand)
■ Indicates goods
■ Expressly or implicitly specifies the ​quantity​ and ​price
Look at ​A55​ when price isn’t fixed → use mkt price
○ Indicate ​intention​ of the offeror to be bound (show seriousness)
● A ​proposal​ other than one addressed by one or more specific persons is to be considered
merely as an invitation to make offers,​ unless the contrary is clearly indicated by the
person making proposal
Ex. brochure/ catalog ถือเป็ น invitation เฉยๆ เพราะวา่ ไมไ่ ด้ specific person
Ex. โพสตข์ ายของ which is sufficiently definite can be proposal or offer ก็ได้ แลว้ แตเ่ คส

Article 18​ - ​Acceptance

● Statement made by the offeree indicating assent to an offer = acceptance
Silence = NO acceptance = NO contract = NO legal boundary
Ex. มีคนสง่ ของมาให้ลองใช้ 30 วัน ถา้ ไมไ่ ดใ้ ชก
้ ไ้ มต
่ อ ้ ือเปน imply acceptance
้ งpay ถา้ ใชถ

Article 19​ - “​The mirror image rule​ = rules that require an offeree respond to an offer with an
acceptance that is definite and unconditional, and that matches the terms of the offer exactly”
= accept match กับที่offer มา ไมไ่ ดม ่ เติม
้ ี condition เพิม
● Reply containing additions, limitations, modifications = rejection → counteroffer
● But additional or different terms do ​NOT MATERIALLY ALTER​ terms of offer
= acceptance + modifications

PART III CISG “Obligations and Conformity of goods”

General obligations
Seller’s Obligations
● A30​ - must deliver goods, hands over docs relating to them, transfer property in goods
○ Deliver goods
○ Hand over any docs relating to them
○ Ensure that goods conform with the contract → justify by Article35
 ● A35​ - ​conformity of goods
(1) must deliver ‘quantity, quality, and description required by contract’ and ‘contained or
packages in the manner required by the contract’

If parties never talk about conformity and never put terms on their contract → CISG
imposes this default obligation. Failure to conformity = breach of contract”
** Seller has to be responsible under any circumstances (know ot NOT)

(2) นอกจากที่ตกลงไว้ goods จะ conform ก็ตอ่ เมื่อ…

A. Fit for purpose for which goods of the same description would ordinarily be used;
B. Fit for any particular purposes (ex. ซื้อพัดลม เพราะจะเอาไอนํา้ and cooling) expressly or
impliedly made known to the seller at the conclusion time EXCEPT buyer did not
rely or it was unreasonable to rely, on the seller’s skill and judgement;
C. Possess the quality of goods which the seller has held out to the buyer as a
sample or model (qualityของที่ขายจริ งตอ ้ งดีเทา่ ที่เอาให้ลองใช)้ ;
D. Contained or packaged in manner usual for such goods
If no such manner, in a manner adequate to preserve and protect goods

(3) Seller NOT LIABLE (A)-(D) if at the time of conclusion on contract…

○ Buyer knew (but still sign the contract → AGREED)
○ Could NOT have been unaware of such lack of conformity
Buyer อาจจะมี bad intention วา่ sign ไปกอ
่ นคอ่ ยไปฟ้องทีหลัง

● A39​ - ​notice of defects

(1) Buyer loses rights to rely on lack of conformity if…
● No notice (inactive)
● Specifying nature of lack of conformity within reasonable time
(2) buyer loses rights if no notice within 2 years after handing over goods UNLESS…
● Seller know the conformity and did not disclose (bad intention)
● The time-limit is inconsistent with a contractual period of guarantee

step1) notice sellers of any defects step2) tell what’s wrong in reasonable time

Buyer’s Obligations
● A53​ - buyer must pay for price for goods and take delivery of them
○ Pay the price
■ A54 - taking such steps and complying w/ such formalities to enable pmt to
be made (put effort to make it complete)
■ A57 (Place)
- if didn’t agree on place of PAYMENT → pay at place of delivery
- if didn’t agree on place of delivery → pay at seller’s place of business
■ A58 (Time)
- buyer must pay the price at place and time designated in the contract, if
no time specify, the buyer pays when goods deliver
○ Take delivery - A60
● From articles above, buyer pays for import taxes/VAT

Breach and remedies

Breach lead to some remedies
- Buyer doesn’t pay ⇒ buyer has to pays
- Seller never deliver ⇒ buyer has right to require performance
- Defective goods ⇒ recover damaged (including loss profits)
- Non-conforming goods ⇒ cure non-conforming goods
⇒ ask seller to reduce price b/c of nonconformity

Breach of Contract (normal)/ Fundamental breach (another level)

● A25​ - ​fundamental breach​ (rights to receive ​more​ remedies than normal)
จะถือวา่ fundamental if result in detriment to other party as substantially to deprive him of
what he is entitled to expect unless party did not foresee
● A26​ - declaration of avoidance of contract is effective is notice
● Principle​: CISG A25 - fundamental if มี both...
○ Can prove substantial detriment → look at their expectation, if not met, there’s
substantial detriment
○ Foreseeable
EXCEPT…
1. Party in breach did not foresee and..
2. A reasonable person of the same kind in the same circumstances would not have
foreseen the result

● A “fundamental breach” entitles:

○ Non-defaulting party to avoid contract (A49 buyer, A64 Seller)
○ Buyer reject non-conforming goods and/or require substitute goods (A46(2))
 ○ Non-defaulting party to recover damages measured by a substitute transaction
(A75)

Remedies​ → give parties the benefits from their bargain

- Damages
- Avoidance of contract
- Specific performance

I. Damages​ → shall be liable in an amount sufficient to make the injured party hold the
event of a breach
○ A74-78
○ Damages defined…
■ CISG Article 74 Damages for breach of contract by one party consist of a
sum equal to the loss, including loss of profit,​ suffered by the other party as
a consequence of the breach.
■ Foreseeable consequential damages
(indirect damages arise)

II. Avoidance of contract ​→ end of contract

Contract cannot be void unless fundamental breach occurs
● A26: Notice
● A49:​ avoidance by buyer
● A52(2): avoidance by buyer - partial delivery
● A64:​ avoidance by seller
● A72: avoidance for anticipatory breach
● A73: Avoidance in the case of an instalment contract

III. Specific performance

a. A46​ - ​Replace
...(2) if goods not conform, require ​substitute​ *only if constitutes fundamental
breach of contract* และตอ ้ งnotice within time
As a buyer, you have to prove…
● Seller fail to deliver conformity/ seriousness ⇒ fundamental breach
● Buyer gives timely NOTICE
● Buyer made timely REQUEST to replace
● No other remedies
 b. A46​ - ​Repair
...(3) if goods not conform, require repair unless unreasonable
A47​ (general idea)
1. The buyer may fix an additional period of time of reasonable length
for performance by the seller of his obligations. ​= give extended time to stay in the
contract
2. Unless the buyer has received notice from the seller that he will not
perform within the period so fixed, the buyer may not, during that
period, resort to any remedy for breach of contract. However, the buyer
is not deprived thereby of any right he may have to claim damages for
delay in performance. = ่ then buyer cannot ask for
​ ถา้ seller notice แลว้ วา่ ขอเวลาเพิม
other remedies แตc่ laim damges จาก delay ได้

c. A48​ - ​right to cure

...Seller may remedy at his own expense any failure to perform his obligations
⇒ use his own expense to cure nonconforming goods

d. A50​ - price reduction

Buyer may reduce the price in the same proportion as the value that the goods
actually delivered had at the time of delivery bears to value that conforming goods
would have had at that time

CHAP2 LETTER OF CREDITS

= เอกสารยืนยันการชาํ ระเงินที่buyerให้ bank ชาํ ระแทน

สารบัญ
1. Problems and concerns
a. What is lC?
b. Required docs
2. What does a typical LC transaction look like?
a. Docs
b. Parties
c. Flowchart
3. Law applies ⇒ UCP600

1 Problems and Concerns

- Buyer doesn’t want to make payment without knowing วา่ สินคา้ conform มัย้
- Seller wants to be paid as soon as สินคา้ สง่ ขึ้นเรื อ

Formal docs to compensate inter sales

Domestic sales​ = are financed through open-account credit arrangements
Formality not needed, only enter into sales after investigating credit worthiness
VS
International sales​ = buyers and sellers separate by distance and different fin. Practices
1. Diff for seller to determine credit standing on their foreign buyers
2. Diff for buyer to rely on the foreign seller integrity and reputation
So, use formal docs to assure ⇒ LC

What is LC?
= docs issued by buyer’s fin institution that use with other required docs (ex BoL) in redeeming
payment from seller’s fin institution in inter bus transaction
= obligation of bank issued on behalf of their customer and promise to pay a sum of money to
seller upon a certain event

2 Typical LC transaction

Docs​ differ depends on agreement, domestic/inter, needs of party, methods of shipping

● LC
● draft/ bill of exchange
● Commercial invoice
● BoL
● Insurance document
● Export license
● Others (packing list, quantity certificate, weight cert, cert of origin, cert of quality, etc)

Parties
● buyers/ applicant/ importer
● Buyer’s bank/ issuing bank
● seller/ beneficiary/ exporter
 ● Seller’s bank/ advising bank or confirming bank
● carrier/ shipper
● Others (Advising B., Claiming B., Nominated B., Reimbursing B., Transferring B.)

Flowchart
Summary (1-4 inward, the rest outward)
1. SELLER​ and ​BUYER​ make sales contract
2. BUYER​ request LC from ​ISSUING BANK
3. ISSUING BANK​ send a copy of LC to ​SELLER​/ issue LC to ​ADV/CONFIRMING B
4. ADV/CON B​ send notification to ​SELLER
5. SELLER​ make shipment arrangement with ​CARRIER
6. CARRIER​ send back BoL to ​SELLER
7. SELLER​ send pledge of BoL to ​ADV/CON B
8. ADV/CON B​ check for complying presentation and transfer BoL to ​ISSUING B
○ Complying presentation
= ADV B check that SELLER deliver all required docs within time allowed,
containing no discrepancies and complies with all terms of LC/ UCP/ standard
banking practices
9. ISSUING B​ make payment to ​ADV B
 10. ADV B​ make payment to ​SELLER
11. ISSUING BANK​ notifies ​BUYER​ a receipt of BoL
12. BUYER​ make payment to ​ISSUING BANK
13. BUYER​ เอา BoL ไปรับของกับ CARRIER
14. CARRIER​ sends goods to ​BUYER

Advising Bank​ → has no responsibility in honour a draft or purchase seller’s docs

→ NOT liable on the credit, just FORWARD LC to seller
→ has no obligation to advice the credit and make refuse if it venturous
→ only duty: satisfy itself that credit is authentic and accurate as receive,
there’s no error in transaction

VS

Confirming Bank ​→ purchase seller’s docs if it’s complying presentation

(Confirming Bank จะจา่ ยเงินให้ seller เลยถา้ comply presentation แลว้ คอ่ ยไป
reimburse กับ issuing bank ทีหลัง)

3
Governing Law
UCP600​ = ​uniform customs and practice for documentary credits​, 2007 revision
● Published by ICC (inter chamber of commerce
○ ICC is inter party that define world-wide standard that are embodies in the UCP for
operations and documentary credit
● UCP ​apply to only matter of LC
● UCP is a set of standardized rules for issuing and handling LC
● UCP establish format for LC, set out rules by which banks process LC transaction, define
the rights and responsibility of all parties to credits
● Parties can choose to use UCP or not
*LC issued under UCP are irrevocable unless clear language is used to make them revocable*

How can we use UCP?

● UCP 600 A1:​ Application of UCP (คลา้ ยๆ part I CISG)
UCP600 are rules that apply to any documentary credit when the text of credit expressly
indicates that it is subject to these rules. They are binding on all parties unless expressly
modified or excluded by credit
→ LC is governed by UCP only to the extent that it states/ if not, then use other law
3 main principles of LC
1. Independence principle
UCP600 A4​: ​Credits​ VS ​Contracts
● States that LC is independence of the sales contract
= bank only undertaking obligations under credit, but not involve with any claims
or defend with contract
⇒ separate transaction from sale contract, issuing bank is NOT concerned with
what party has promised under their contract
if presentation is complying, then nominating bank will purchase seller’s docs
** CANNOT refuse to pay making an excuse that sales contract not conform**
(อันนี้ เป็ นเรื่ องของ CISG)

EX.

เคสนี้ คือ ISSUING BANK refuse to pay เพราะอา้ งวา่ ไมไ่ ดต ้ รวจสอบกระดาษกอ
่ น แตใ่ นLC
ไมไ่ ด้ request certification. Therefore, ตอ
้ งจา่ ย เพราะมัน 100% comply

⇒ LC was in no way involved in or concerned with the contract

⇒ Whether the paper conformed to the contract did not concerned the bank and in no
way affect its liability
⇒ If the drafts were accompanied by genuine documents specific in LC, the bank had
an obligation to make payment
⇒ Even the ISSUING B know that paper is not conformed, it has no right to inspect
before paying
 2. Credit deals with docs only, NOT goods and services
UCP600 A5​: ​Document​ VS G ​ oods, Service, Performances
● To confirm that bank deals with docs NOT goods
● **Only cares that seller present certain doc required by LC (invoice, BoL,
insurance policy)**

Buyer’s application for credit becomes a contract btw BANK and BUYER. It states what
the bank should do on buyer’s behalf which is to purchase SELLER’s documents and obtain
reimbursement from BUYER. If violate, BUYER ไมจ่ าํ เป็ นตอ
้ ง reimburse

Ex. LC: 1000 electric ​toaster​, docs all correct, but BANK knew that SELLER ships ​oven
= CANNOT refuse to pay
Ex. LC: ​toaster​, docs say ​oven​, BANK purchase docs without approval
= BANK is not entitled to reimbursement from BUYER

3. Strict compliance
UCP600 A14:​ Standard for examination of docs
= prevailing standard established by court for examining docs that it follows this rules
**docs presented by seller must strictly conformed with docs description on LC**
If discrepancies → LC Bank will NOT honour presentation unless the account party
waived discrepancy. Even small dis can cause bank reject docs

● Discrepancies​ = any difference btw required docs and terms required by LC

○ Amount or description in invoice NOT match
○ Missing docs
○ Delayed BoL
○ Contradictions among docs
○ Some sigh of fraud/ missing signature
● Example:
LC​: 1000 bags of ​Coromandel groundnuts
Invoice​: 1000 bags of ​machine-shelled groundnuts kernels
⇒ even it is the same kind, still discrepancy b/c wording not match → ​reject

Functional standard of compliance

● UCP600 A18: Commercial Invoice
○ สิง่ ใน invoice​ must be correspond with ​credit
● UCP600 A14: Standard for Examining of docs
○ Data in document dont need to be identical but must not conflict
 Bank looks at docs as a whole, so if bank understand and there are only some mistake
which is understandable ⇒ bank can buy docs
Ex. Invoice matches LC but BoL shows little discrepancies = UCP OK!

เดา: According to the functional standard of compliance in the third principle of LC, the strict
compliance, it states that the commercial invoice must correspond to what appear on the credits.
However, documents don’t need to be identical but must not conflict with the credits. Therefore,
there is no discrepancy in this case because even the BoL shows only “sugar” instead of “White
Crystal Sugar”, it is understandable and the invoice matches LC perfectly. In conclusion, the bank
should buy the seller's documents.
CHAP3: International Technology Transfers การถา่ ยทอดเทคโนระหวา่ งประเทศ

What is technology?
= a perishable source comprising ​knowledge, skills, and means for using and controlling
factors of production​ for the purpose of ​producing, delivering to users, and maintaining
goods and services​ for which there is an economic and/or social demand
= translate science into practical use under econ terms

Technology and Development

There’s a close relationship btw technology progress and economic progress, so
developed countries have good econ bc they have good tech
Tech develop in developing countries
● LT: R&D
● ST: ​Tech transfer​ เพราะไมม่ ีbudget/ time/ HR in r&d