CIF And FOB Contract

The cost associated with the physical transfer of goods is an essential piece of information in the negotiation of an international trade transaction. To maintain a product’s competitiveness, the seller must make sure that his cost is as low as possible. However, in any particular supply chain, this cost is made up of a number of cost elements corresponding to services that enable physical linkages between supply chain members. These elements cannot always be clearly quantified beforehand.

Any contract for transporting freight or personnel by vessel, aircraft, bus, truck, express, railroad, or oil or gas pipeline where published tariff rates are in effect;

b. Make a contract for the transportation of the goods that is reasonable given the nature of the goods and other circumstances.

WHEREAS, the Seller desires to sell to Buyer, and Buyer desires to purchase from the Seller, the Aircraft; and

A. ASC 605-25-30-2 states that an arrangement consideration shall be allocated at the inception of the arrangement to all deliverables on the basis of their relative selling price (the relative

This agreement made and entered into this date October 23, 2015, by and between Machines, Inc. of Austin, Texas, and Widgets, Inc. of Detroit. It was designed for both parties to understand terms and condition of their trading. This sale contract was developed by Uniform Commercial Code, which is government rules regarding businesses or companies. According to Raina article, “the terms and conditions in import contracts outline the rights and obligations of the importer and the foreign supplier in carrying out the transaction (1990, sec.1). This contract regards for the purchase of the goods described below:

Q5. Can an overseas trader who is buying your exports take any legal action against you if you fail to comply with an INCOTERM that you have not agreed on in the contract between yourselves ? Why? (2.3, 3.4, 4.1, RK2)

In the United States, businesses contribute a substantial portion towards building the country’s economy. It encourages the productivity by providing huge profits and growing revenues in the country. The business industry increases employments and offers a form of financial security for the people. As result, the US created a uniform body of laws to regulate these commercial transactions; buying and selling of goods. In 1949, the National Conference of Commissioners on Uniform State Laws developed the Uniform Commercial Code (UCC) to help govern commercial transactions of sale and lease contract. Contracts can come in any form and types. It can be long-term or short term depending on the kind of business you have. A sale contract of goods contract is an agreement between a buyer and seller to transfer goods and title at an agreed price with specify delivery terms. The UCC provide a resolution to problems that can arise during such transaction and gave individuals a clear understanding of the rules in doing business. In the case of 3300625 Canada, Inc. versus New York Look Enter., Inc. we have a commercial transaction between a seller who agreed to transfer and deliver conforming goods to a buyer who will accept and pay for the conforming goods. However, a dispute arises during the transaction due to miscommunication of alternative delivery dates that lead to a lawsuit in court.

This case provide a idea that people must change perception, which is consumers are not the whole components of movement of goods, but the movement of goods and merchandise essential to life and economic vitality. It breaks limit of scope to discuss present threat of cargo supply chain, sources of cargo terrorists and thieves, solutions and challenges for both short term and long term from private and public sectors.

a. in CIF, the goods are delivered past the ship’s rail, but S does not possess them until the port of destination. This is distinct from the FOB where delivery and possession occur at same time.

credit and payment policies as opposed to sales agents who do not purchase the merchandise and

Accepting the contract may affect their relationship with their current dealers by causing them to seek other importers that sell only “authentic” pieces

Certain business situations necessitate that customers take title to the goods purchased, agree to pay for them and yet not be in a position to accept delivery of the goods. In such cases, the sellers fulfill the manufacturing requirements and segregate the goods in their warehouses so as to make the goods available to the customers for shipment. Such transactions are labeled ‘bill and hold’ agreements (Grant Thornton, 2010).

There are some important issues to consider when dealing with intermediaries on an exporting process: First of all the company would need to identify the appropriate commission structure for compensating intermediaries, which sometimes might lead

For instance, Thailand and Indonesia signed a $40 million deal in which Indonesia would supply Thailand with an agricultural aircraft, train carriages, and fertilizer in exchange for Thai rice—no monies were or would be exchanged. There are barter firms that act as an intermediary between the exporter and importer, often taking title to the goods received by the exporter for a price or selling the goods for a fee and a percentage of the sales value.