CHAPTER 1

FURTHER PRACTICE
I. General Questions

1. What is the amount of Liquidated damages

compensation usually set
in advance?

2. What is a grace period? - grace period is a time past the deadline for an
What is excusable delay obligation during which a late penalty that
nearly always subject to? would have been imposed is waive
- Force majeure provision
3. What is a penalty clause? A clause whose purpose is not to compensate but
to punish and is designed to give the contractor a
significant financial advantage if the terms of a
contract are breached
 To terrize the parties into the fulfilment of
their obligations
4. What is the purpose of a To relieve the exporter of liability for delay in
quasi-indemnity? delivery
5. In delivery, what are the It ensures the physical safety of the goods and
main roles of provides correct documentation
transportation?

6. Should the requirements For the goods to arrive safely, correct packaging
of packaging and marking and shipping marks are essential. Such matters are
be mentioned in the sale often made the subject of a separate clause in the
contract? Why? export contract because claims arising from delay
or damage can be settled only if it is clear who is
responsible for packing and marking
7. Why does the shipping Because the bank will refuse to pay if the shipping
documents correspond documents are in any way incorrect
exactly with the payment ca be se
conditions of the letter of
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credit?
8. Before paying a claim for insurers should typically investigate the claim to
loss, what should insurers determine if it is valid and covered by the policy
do?

9. What is the An unvalued policy is a type of marine insurance

unvalued policy? policy where the insured value of the goods being
transported is not specified in advance. Instead,
the policy simply covers the full value of the goods
at the time of loss or damage, up to the policy
limit. Unvalued policies are often used when the
exact value of the goods is difficult to determine or
when the value may fluctuate during transport.
10. What risks does General A General Exclusion Clause is a standard clause
Exclusion Clause exclude? found in insurance policies that specifies certain
risks or types of loss that are not covered under the
policy. The specific exclusions may vary depending
on the type of policy and the insurer, but common
examples include losses caused by war, terrorism,
nuclear events, intentional acts, and certain natural
disasters. These exclusions are typically designed to
limit the insurer's exposure to high-risk events or
situations that are outside the scope of the policy.

II. Gap-Filling

1. If the parties must wait for the contract to date

become effective, the delivery date often
depends on the
....................... of coming into force.
2. Some contracts (especially fixed-price Cut-off
contracts) set a ................... date after which
the contract cannot come into force.
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3. A ................... period is sometimes used to grace

facilitate early delivery.
4. A force majeure clause often ............. the relieves
exporter of his duty to deliver until the force
majeure event is over.

5. If the force majeure event continues for too terminate

long, both parties should have the right
to ................... the contract.

6. To avoid the cost and uncertainty of legal proceedings

..................., many contracts regulate in
advance the compensation for late delivery.
7. A ................... is not enforceable in Anglo- penalty
American courts, though the quasi-indemnity
is usually enforced.

8. The contract should ....................... the type

of packaging and the shipping marks agreed Specify/state/provide/stipulat
by the parties. e

9. On delivery, the exporter receives from the shipping

carrier the most important of all
the ....................... documents, the bill of
lading (or consignment note).
10. Each mode of transport has a ....................... characteristic
shipping document: the marine bill of lading,
the air waybill, the rail consignment note, and
the road consignment

note are the most common. Combined transport

(container transport) uses a combined transport bill
of lading.
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11. The marine bill of lading, to be acceptable as a named

shipping document under a letter of credit, must
bear the notation that the goods have been shipped
on board a ....................... vessel.

12. Payment under a letter of credit depends largely on correctness

the ....................... of the shipping documents.
13. Payment under a letter of credit may be delayed if failed
the letter of credit repeats exactly the contractual
packaging requirements but the exporter has
....................... to meet them.
14. 8. The carrier will note any ....................... in the defects
packaging, weight or general appearance of the
goods on accepting them from the exporter. (The
carrier does not inspect the goods themselves, only
the packaging.)

15. In CIF and CIP contracts, the exporter must pay for Port of delivery
insurance from ....................... to the named point of
arrival.

16. The insured can make three kinds of arrangement The floating policy
with the insurer: the tailor-made
policy, ....................... and the open cover.
17. The main principle of insurance is ....................... Utmost good faith
18. A ....................... has three variant clauses: Cargo marine
Clauses A, B and C. Clause A covers anything not
excluded; clauses B and C exclude anything not
expressedly covered.

19. ....................... issues Incoterms to standardize ICC

delivery procedures.
20. A “held covered” clause offers some protection misdescription
against .......................
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III. True / False (If any)

1. A systematic approach to negotiating delivery avoids the T

danger of the parties overlooking important issues
2. A grace period is sometimes used to avoid early delivery. - F
- grace period is
a time past the
deadline for an
obligation
during which a
late penalty
that would
have been
imposed is
waive

3. Late delivery causes loss to the buyer-loss that can be F

compensated
4. A lump-sum compensation is normal in case of late F
delivery. It may be set too high as quasi-indemnity
5. If the bill of lading is claused, payment will be delayed. T
6. The Carrier shall be liable for any damage to or loss of the F - Seller
Goods attributable to improper or defective packaging.
7. Packaging of dangerous goods is subject to special T
regulations in all countries.
8. Some of the marks in packaging relates to government T
regulations.
9. Many exporters have an agreement with an insurance T
company covering all their shipments over a period of
time.
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10. Under English law at least, the effect of a certificate T

insurance is virtually different with that of a full policy.
11. The floating policy offers the exporter insurance cover on F
all shipments over a period of time whereas the open
cover does not.

12. FOB, Incoterms 2010, states that the seller is required T

either to deliver the goods on board the vessel or to
procure goods already so delivered for shipment.

IV. Matching

A B
1. The BUYER shall advise the a. then the SELLER may at his discretion
SELLER the name deliver the Goods to a bonded
warehouse

2. If the vessel named by the b. of the full circumstances of the Delivery

BUYER fails to arrive on or to the warehouse
before July 30th,

3. Goods are to be packed in c. shall be marked: the package number,

….and are to be gross weight, net weight, the lifting
position

4. With Delivery to the d. purposes of inspection at a reasonable

warehouse, all costs, including time agreed by the parties.
5. On the surface of each package e. well protected against damping, shock,
delivered under this Contract rust or rough handling.

6. The SELLER shall permit access f. of the vessel not later than 07 Days
to the Goods for before the agreed Delivery date.
7. In this event, the SELLER must g. but not limited to cost of storage and
notify the BUYER insurance are to the BUYER’s account.
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8. To allow payment at early h.
stage,
9. The most important shipping i.
document is issued by the
carrier
10. Since containers move by road, j.
rail, ship and air,
11. A trucking company issues k.
12. A marine bill of lading must l.
indicate that
13. The marine bill of lading can m. a combined transport bill of lading is
be made a negotiable used to cover multi-mode transport.
document as
14. If the consignee intends to n.
receive the goods personally,
15. A certificate of insurance o.
16. One disadvantage of the p.
floating policy is that
17. The valued policy means that q.
18. A letter of insurance is r.
19. Improper packaging means that s.
the goods have been loaded on board a
named vessel.
there is no reason for a negotiable bill of
lading.
international commerce has developed
the letter of credit.
when the exporter hands over the goods
for transportation.
the person who holds it has title to the
goods described.
a road consignment note on taking over
the goods.
a letter from the exporter to the buyer
stating that the goods are insured.
states in outline the cover offered and
gives the details of the individual
shipment
the goods shipped in an unseaworthy
vessel are not insured
it is set up for a particular time and
automatically expires unless renewed.
the exporters stated the value of the
goods on the insurance document.
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20. The Unseaworthiness and t. the damage resulting from improper

Unfitness Exclusion Clause says packing or preparation is not covered
that

V. English – Vietnamese Translation

1. One of these Combined Transport Một trong các Vận đơn Vận tải Liên hợp
Bills of Lading must be surrendered này phải được xuất trình hợp lệ và được
duly and endorsed in exchange for ký hậu để đổi lấy hàng hóa.
the goods.

2. In Witness whereof the original
Combined Transport Bills of Lading
of this tenor and date have been
signed in the number stated below,
one of which being accomplished
the other(s) to be void.
Để làm bằng chứng cho việc các Vận đơn
Vận tải Liên hợp ban đầu của thời hạn này
và ngày tháng đã được ký theo số ghi dưới
đây, một trong số đó đã được hoàn thành,
(những) số còn lại sẽ vô hiệu.

3. The remarks in a claused document Các nhận xét trong một tài liệu có điều
make it unacceptable to a bank; a khoản khiến ngân hàng không thể chấp
letter of credit will not be paid nhận được; một thư tín dụng sẽ không
against a claused shipping được thanh toán đối với một chứng từ vận
document. chuyển có điều khoản.

4. Courts in several countries have
ruled that the carrier who accepts
such an indemnity… is an
accomplice in deceit or fraud on
the buyer and the indemnity itself
is illegal and void.
Tòa án ở một số quốc gia đã quy định
rằng người vận chuyển chấp nhận khoản
bồi thường như vậy… là đồng phạm trong
việc lừa đảo hoặc gian lận người mua và
khoản bồi thường là bất hợp pháp và vô
hiệu.
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5. Shipper certifies that the
particulars on the face hereof are
correct and that insofar as any part
of the consignment contains
dangerous goods, such part is
properly described by name and is
in proper condition for carriage by
air according to the applicable
Dangerous Goods Regulations.
6. Seller will inform Buyer promptly of
any occurrence which will or may
result in any delay of delivery at
any time or which will or may result
in
Seller's inability to fulfill the
quantities specified in the Purchase
Order
7. The custom of the port will decide
the extent to which loading costs
under FOB should be distributed
between seller and buyer. If this is
known to both parties, no
difficulties should arise.
8. The terms DES and DEQ are
traditional for carriage goods by
sea. The former means that the
buyer must take the cargo out of
the ship, whereas the latter places
the burden on the seller to ensure
that the goods are discharged on
to the quay.
Người gửi hàng xác nhận rằng các thông
tin chi tiết trên mặt hàng này là chính xác
và bất kỳ phần nào của lô hàng có chứa
hàng hóa nguy hiểm, phần đó được mô tả
đúng theo tên và ở trong tình trạng thích
hợp để vận chuyển bằng đường hàng
không theo Quy định về Hàng hóa Nguy
hiểm hiện hành.
Người bán sẽ thông báo ngay cho Người
mua về bất kỳ sự cố nào sẽ hoặc có thể
dẫn đến bất kỳ sự chậm trễ nào trong việc
giao hàng vào bất kỳ thời điểm nào hoặc
sẽ hoặc có thể dẫn đến việc Người bán
không thể đáp ứng số lượng được chỉ định
trong Đơn đặt hàng
Hải quan sẽ quyết định mức độ phân bổ
chi phí xếp hàng theo giá FOB giữa người
bán và người mua. Nếu cả hai bên đều
biết điều này thì sẽ không có khó khăn gì
phát sinh.
Các thuật ngữ DES và DEQ là thuật ngữ
truyền thống để vận chuyển hàng hóa
bằng đường biển. Điều kiện thứ nhất có
nghĩa là người mua phải lấy hàng ra khỏi
tàu, trong khi điều kiện thứ hai đặt gánh
nặng lên người bán để đảm bảo rằng hàng
hóa được dỡ xuống cầu cảng.
 10

9. Any dates quoted for delivery of
the goods are approximately only
and the supplier shall not be liable
for any delay in delivery of the
goods unless being in delay more
than two weeks from the agreed
approximate delivery date and
having received the Buyer’s written
notification.
Bất kỳ ngày nào được nêu để giao hàng
chỉ là thời gian ước tính và nhà cung cấp
sẽ không chịu trách nhiệm về bất kỳ sự
chậm trễ nào trong việc giao hàng trừ khi
bị chậm trễ hơn hai tuần kể từ ngày giao
hàng gần đúng đã thỏa thuận và đã nhận
được thông báo bằng văn bản của Người
mua.

10. Seller agrees to take all actions
necessary and appropriate to
ensure that goods are received by
Buyer as required under the
relevant Supply Contract.
Người bán đồng ý thực hiện tất cả các
hành động cần thiết và phù hợp để đảm
bảo rằng Người mua nhận được hàng hóa
theo yêu cầu của Hợp đồng cung cấp có
liên quan.

VI. Vietnamese – English Translation

1. Việc giao hàng tùy thuộc vào việc The delivery depends on whether the ship
tàu đã sẵn sàng để chở hay đã có is ready to transport or if there is available
khoang trống trên tàu để tiếp nhận space on the ship to receive the goods.
hàng chưa.

2. Bất kỳ mặt hàng, thiết bị, cấu phần
bất kể là ở nước của người sản
xuất hay nơi khác trong phạm vi
kiểm soát của người bán sẽ phải
được kiểm tra trước khi giao hàng
và trải qua khâu kiểm nghiệm dưới
sự giám sát của SGS
Any goods, equipment, components,
regardless of whether they are in the
country of the manufacturer or elsewhere
within the control of the seller, must be
inspected before delivery and undergo
testing under the supervision of SGS.
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3. Người bán có thể tùy quyền định
đoạt của chính mình sắp xếp cho
tàu chở hàng hoặc khoang chứa
hàng, giao hàng đi mà không ảnh
hưởng đến những quyền khác hay
các biện pháp khắc phục lỗi khác
mà người bán có thể phải thực
hiện theo hợp đồng này.
The seller may at their discretion arrange
for the ship to transport the goods or cargo
hold, and deliver without affecting other
rights or remedies that the seller may have
to perform under this contract.

4. Ngày giao hàng được thể hiện trên The delivery date specified on the bill of
vận đơn sẽ là bằng chứng cho thời lading shall be evidence of the delivery
điểm giao hàng. time.

5. Trường hợp không có bằng chứng In the absence of evidence to the contrary,
cho trường hợp ngược lại, sự the delay in this case may be acceptable,
chậm trễ trong trường hợp này là even if the delivery date falls on a normal
có thể chấp nhận được cho dù working day.
ngày giao hàng có là ngày làm việc
bình thường không.

6. Thông báo giao hàng cuối cùng: Final delivery notice: Within 24 hours of
trong vòng 24 giờ kể từ lúc giao delivery, the seller is obliged to notify by
letter, telegram: contract number, total
quantity, total weight, net weight, size,
number of packages, invoice value, name of
the shipping vessel, bill of lading number,
and date of departure.
hàng, người bán có nghĩa vụ phải
thông báo bằng thư tín, điện tín:
số hợp đồng, số lượng, trọng
lượng tổng cộng, trọng lượng tinh,
kích thước, số gói hàng, trị giá hóa
đơn, tên con tàu chuyên chở, số
vận đơn, ngày tàu chạy.
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7. Người mua có quyền cho
Vinacontrol kiểm tra hàng hóa ở
nơi đến, nếu có bất kì sự sai biệt
nào phát sinh liên quan đến số
lượng và chất lượng, trước tiên
người mua phải khiếu nại người
bán dưới hình thức telex.
The buyer has the right to have Vinacontrol
inspect the goods upon arrival. If any
discrepancies arise regarding quantity and
quality, the buyer must first lodge a
complaint with the seller by telex.

8. Thỏa thuận này phải có hiệu lực This agreement shall come into effect after
sau khi hai bên kí hợp đồng vào both parties sign the contract and require
ngày cần có sự phê duyệt của các approval from the competent authorities in
nhà chức trách có thẩm quyền ở the country of the buyer and seller.
quốc gia của người mua và người
bán.

9. Nếu hợp đồng không có hiệu lực If the contract is not effective within 90
trong vòng 90 ngày kể từ khi hai days from the date of signing by both
bên kí hợp đồng, thì nó sẽ trở nên parties, it will become null and void.
hết hiệu lực.

10. Sự tuân thủ về thời gian là điều Compliance with time is a prerequisite for
kiện tiên quyết để hợp đồng có the contract to be effective.
hiệu lực.

VII. Case Study

In practice, each consignment should be roughly one container load; a little more,
and two containers will be needed at double the cost; somewhat less and the
carrier is paid to transport thin air.
Scenario: Ayshe Aziz owns Double-A Ltd., a company in Verbena that manufactures
hair treatment products. A buyer, from Esperanza, Tony Mino, visits Aziz to discuss
the export of a trial consignment: 100 cartons of standard shampoo and 100
cartons of shampoo for dry hair. If the shampoo sells well, more orders will follow.
200 cartons of shampoo are not a large enough order to justify a container; if Aziz is
a good negotiator, what will she suggest Mino do?
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As 200 cartons of shampoo are not enough to fill a container, Aziz may
suggest Tony Mino to consider a less-than-container-load (LCL) shipment.
In an LCL shipment, the cargo is consolidated with other small shipments
to fill a container, and the cost is shared among the shippers. This can be a
cost-effective solution for smaller consignments that are not large enough
to fill a container on their own.

Alternatively, Aziz may suggest that Mino wait until he has a larger order
to ship. This would allow them to fill a container and benefit from the
economies of scale that come with shipping in bulk. Aziz may also suggest
that Mino consider other options, such as air freight or courier services,
depending on the urgency of the shipment and the cost considerations.

In any case, Aziz's negotiation skills will be crucial in finding a solution that
meets Mino's needs while keeping the shipping costs reasonable.
******