International business law

LESON 4 CASES
CASE 1:

Digital world, a Spanish company domiciled in Manresa (Spain)

STEPS TO SOLVE A CASE
(buyer) celebrates a contract with Thai Teck, a company
domiciled in Taipei (Taiwan) (seller) on 12/01/2021 in 1ST  Identify parties
Barcelona. The contract specifies that Thai Teck should deliver
2nd  Identify contracts
25 000 chips for the toys the Spanish company produces. Due
to important difficulties with the carriage, the Thai company 3rd  Jurisdiction
delivers late the chips. The buyer, Digital world, brings an
action before the Spanish courts that declare to have 4th  apply law
international jurisdiction.

Identify the legal instrument to determine the applicable law to the contract.

First que have to identify the parties. I this case we identify the Spanish company and the
Taiwan. Then we have to identify the type of contract, in this case is the international sale of
goods contracts. When it comes to jurisdiction, the Spanish courts are allowed to solve the
dispute. We have to determine the applicable law to solve the case: there are two legal
instruments that can be applied either the Vienna Convention or Rome I Regulation. They can
be applied at the same time because they have the same material scope of application.
However, the VC prevails over the Rome I Regulation since the art 25 of the Rome I Regulation
specifies that if there is an international treaty that regulates the same questions and it has
been gratified by EU member states and third member states then this convention prevails,
which means that the Spanish courts should check first the VC.

The VC must be applied when both parties has their business settled in a country which is part
form the VC. Since Taiwan is not part of the VC, it cannot be applied in a direct way according
to article 1 (a). The article 1 (b) stablished that when the rules of private international law led
to the application of the law of the Contracting State, in this case the Spanish Courts.
Therefore, the Spanish courts we will apply the Rome I Regulation, specifically the article 3
which regulates the fact that parties have possibility to include in the contract a specific clause
choosing the applicable law. In our case, neither of the companies have specified any law to be
applied , so article 3 cannot be applied. Then we will have to look to the article 4.

The article 4 says the applicable law will be the law where the seller has its habitual residence.
In this case, the seller is Thai Teck which means that the Spanish Courts we will apply the
Taiwan laws
International business law

CASE 2:

Digital world, a Spanish company domiciled in Manresa (Spain) (buyer) celebrates a contract
with MalTeck, a company domiciled in Singapore (seller) on 12/01/2021 in Barcelona. The
contract specifies that Thai Teck should deliver 25 000 chips for the toys the Spanish
company produces. Due to important difficulties with the carriage, the Thai company
delivers late the chips. The buyer, Digital world, brings an action before the Spanish courts
that declare to have international jurisdiction.

Identify the legal instrument to determine the applicable law to the contract.

First, we identify the parties: the Spanish company and the Singapore company. In this case
the contract is the international sale of goods contract. When it comes to the Jurisdiction, the
Spanish courts will be in charge of solving this conflict. Now we will have to decide which law
we will be applied. According to article 25 of Rome I regulation, the VC will be the legal
instrument that in first case can be applied. We will have to look in the VC to look if I’m this
situation can be applied. First, we will have to fleck the territorial scope of application (art 1.a),
which says that both countries in the contract have their place of business in a contracting
country. In this case both countries are part of the VC, which means that it can be applied.