CHAPTER 1: MORE EXERCISES

I. General Questions
1. What is the amount of
compensation usually set in
advance?
2. What is a grace period?
What is excusable delay
nearly always subject to?
3. What is a penalty clause?
4. What is the purpose of a
quasi-indemnity?
5. In delivery, what are the
main roles of
transportation?
6. Should the requirements of 6.
packaging and marking be
mentioned in the sale
contract? Why?
7. Why does the shipping 7.
documents correspond
exactly with the conditions
of the letter of credit?
8. Before paying a claim for 8.
loss, what should insurers
do?
9. What is the unvalued policy? 9.
10 What risks does General 10.
. Exclusion Clause exclude?
II. Gap-Filling
1. If the parties must wait for the contract to become 1.
 effective, the delivery date often depends on the
....................... of coming into force.
2. Some contracts (especially fixed-price contracts) set 2.
a ................... date after which the contract cannot
come into force.
3. A ................... period is sometimes used to facilitate 3.
early delivery.
4. A force majeure clause often ............. the exporter of 4.
his duty to deliver until the force majeure event is
over.
5. If the force majeure event continues for too long, both 5.
parties should have the right to ................... the
contract.
6. To avoid the cost and uncertainty of legal ..................., 6.
many contracts regulate in advance the compensation
for late delivery.
7. A ................... is not enforceable in Anglo-American 7.
courts, though the quasi-indemnity is usually
enforced.
8. The contract should ....................... the type of 8.
packaging and the shipping marks agreed by the
parties.
9. On delivery, the exporter receives from the carrier the 9.
most important of all the ....................... documents,
the bill of lading (or consignment note).
10 Each mode of transport has a ....................... shipping 10.
. 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.
11 The marine bill of lading, to be acceptable as a 11.
. 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 12.
. the ....................... of the shipping documents.
13 Payment under a letter of credit may be delayed if the 13.
. 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 14.
. 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 15.
. insurance from ....................... to the named point of
arrival.
16 The insured can make three kinds of arrangement with 16.
. the insurer: the tailor-made policy, ....................... and
the open cover.
17 The main principle of insurance is ....................... 17.
.
III. True / False (If any)
1. A systematic approach to negotiating delivery avoids the 1.
danger of the parties overlooking important issues
2. A grace period is sometimes used to avoid early delivery. 2.
3. Late delivery causes loss to the buyer-loss that can be 3.
compensated
4. A lump-sum compensation is normal in case of late delivery. 4.
It may be set too high as quasi-indemnity
5. If the bill of lading is claused, payment will be delayed. 5.
6. The Carrier shall be liable for any damage to or loss of the 6.
Goods attributable to improper or defective packaging.
7. Packaging of dangerous goods is subject to special 7.
regulations in all countries.
8. Some of the marks in packaging relates to government 8.
regulations.
9. Many exporters have an agreement with an insurance 9.
company covering all their shipments over a period of time.
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 BUYER b. of the full circumstances of the Delivery
fails to arrive on or before July to the warehouse
30th,
3. Goods are to be packed in ….and c. shall be marked: the package number,
are to be gross weight, net weight, the lifting
position
4. With Delivery to the warehouse, d. purposes of inspection at a reasonable
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 to f. of the vessel not later than 07 Days
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.
8. To allow payment at early stage, h. the goods have been loaded on board a
named vessel.
9. The most important shipping i. there is no reason for a negotiable bill
 document is issued by the carrier
10. Since containers move by road, j.
rail, ship and air,
11. A trucking company issues
12. A marine bill of lading must l.
indicate that
13. The marine bill of lading can be m. a combined transport bill of lading is
made a negotiable document as
14. If the consignee intends to n.
receive the goods personally,
15. A certificate of insurance
16. One disadvantage of the floating
policy is that
17. The valued policy means that
18. A letter of insurance is
19. Improper packaging means that
20. The Unseaworthiness and
Unfitness Exclusion Clause says
that
V. English – Vietnamese Translation
2. One of these Combined Transport 2.
Bills of Lading must be
of lading.
international commerce has developed
the letter of credit.
k. when the exporter hands over the
goods for transportation.
the person who holds it has title to the
goods described.
used to cover multi-mode transport.
a road consignment note on taking over
the goods.
o. a letter from the exporter to the buyer
stating that the goods are insured.
p. states in outline the cover offered and
gives the details of the individual
shipment
q. the goods shipped in an unseaworthy
vessel are not insured
r. it is set up for a particular time and
automatically expires unless renewed.
s. the exporters stated the value of the
goods on the insurance document.
t. the damage resulting from improper
packing or preparation is not covered
 surrendered duly and endorsed in
exchange for the goods.
3. The remarks in a claused 3.
document make it unacceptable
to a bank; a letter of credit will
not be paid against a claused
shipping document.
4. Courts in several countries have 4.
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.
5. Shipper certifies that the 5.
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 6.
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 7.
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 8.
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.
9. Any dates quoted for delivery of 9.
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.
10 Seller agrees to take all actions 10.
. necessary and appropriate to
ensure that goods are received by
Buyer as required under the
relevant Supply Contract.

VI. Vietnamese – English Translation

1. Việc giao hàng tùy thuộc vào việc 1.
tàu đã sẵn sàng để chở hay đã có
khoang trống trên tàu để tiếp
nhận hàng chưa.
2. Bất kỳ mặt hàng, thiết bị, cấu phần 2.
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
3. Người bán có thể tùy quyền định 3.
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.
4. Ngày giao hàng được thể hiện trên 4.
vận đơn sẽ là bằng chứng cho thời
điểm giao hàng.
5. Trường hợp không có bằng chứng 5.
cho trường hợp ngược lại, sự
chậm trễ trong trường hợp này là
có thể chấp nhận được cho dù
ngày giao hàng có là ngày làm việc
bình thường không.
6. Thông báo giao hàng cuối cùng: 6.
trong vòng 24 giờ kể từ lúc giao
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.
7. Người mua có quyền cho 7.
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.
8. Thỏa thuận này phải có hiệu lực 8.
sau khi hai bên kí hợp đồng vào
ngày cần có sự phê duyệt của các
nhà chức trách có thẩm quyền ở
quốc gia của người mua và người
bán.
9. Nếu hợp đồng không có hiệu lực 9.
trong vòng 90 ngày kể từ khi hai
bên kí hợp đồng, thì nó sẽ trở nên
hết hiệu lực.
10. Sự tuân thủ về thời gian là điều 10.
kiện tiên quyết để hợp đồng có
hiệu lực.