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International Sales

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  • Level: Post Graduate/University
  • Pages: 5 / Words 1130
  • Paper Type: Case Study
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  • Downloads: 10340

Introduction

In the present economy, there is a constant increase in sales transactions among different countries which results in implying laws and acts that support managing the international sales transaction. Along with this, international sales law also focuses on governing or protecting the rights of a party from unethical sales practices performed by the other party. The present report focuses on the scenario of different companies operating in different regions and has entered into the sales contract by reviewing the different provisions.

Case Scenario

Small Malt Ltd. Small retailer of Whiskey located in Ireland engages in an online advertisement for selling Whisky. The advertisement was seen by Liquor Sales Co. located in California contacted the Small Malt company for purchasing Irish whiskey over the three-year period. The agreement among parties does not focus on any of the provisions on the choice of law or court jurisdiction.

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(a) If Single Malt initiates litigation over its claim for damages stemming from the alleged repudiation, it will probably bring its suit in Ireland. What law should a court in Ireland apply to the transaction?

Accordant with the case scenario, Single Malt Ltd. do not sell Whiskey to Liquor Sales Co. as the company states that both companies are not in the contract. The contract was repudiated earlier by Liquor Sales Co. Therefore If Single Malt initiates litigation over its claim for damages stemming from the alleged repudiation then it will probably bring its suit in Ireland. Hence, the Ireland law would be applicable to the transaction.

The Irish law indicates that Irish retailers who are interested in selling goods and products outside the national market then the company would attain contract law obstacles. Therefore, it is also required by the company to comply with or abide by the laws and regulations related to consumer protection (A Common Sales Law for Europe: Factsheet for Ireland, 2017). Along with this, if the business goes wrong in delivering the goods then the general rights do not exist in the Irish law. The small businesses that are exporting products and services in the new market must rely on the laws and activities of the other regions as they are trading outside the European Union region. Moreover, there is also some relevant Irish legislation relating to serving alcohol within the licensed premises or in the off-license region (Antràs, 2013). The Court in Ireland does not provide remedies for the other company as the contract does not include any provision related to court jurisdiction.

(b) If Liquor Sales brings suit based on its claim of contract breach, it will probably file the suit in southern California. What law should a court in California apply to the transaction?

On the other hand, in the situation if Liquor Sales brings suit based on its claim of contract breach then it will probably file the suit in southern California. Therefore, in this situation law within California would be applied within the transaction. Accordant with the legal terms and provisions of the contract, it has been stated that both parties have entered into the contract for three years but the Single Malt company was unable to deliver whiskey to the other party therefore, in such a situation the company is liable to pay for the damage.

Within California The Uniform Commercial Code (UCC regulates the contracts that are related to the sales of goods in California. Moreover, it has been also assessed that companies must engage in proper formulation of the contract so that they may not perform unwanted or improper activities related to the sales of products (Azhar, 2017). The California region also focuses on protecting the company of their region from the other region countries so that it may easily protect their activities. In addition to this, California sales tax also imposes certain taxable amounts on the other party so that buyers and sellers are jointly liable for performing effective practices.

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(c) Assume that both the parties want the CISG to govern their contract

1. Draft a provision for inclusion in the contract that is upheld by Irish and California courts.

In order to attain the liability for the damages in regards to breaching of contract it has been assessed that companies within the different regions must focus on in-sourcing different licensing agreements that are governed by CISG (Convention on Contracts for the International Sales of Goods) so that they may easily include the relevant and required clauses within the contract. With the help of this convention, mainly focuses on different legislation as well as business transactions so that they may easily engage in activities related to international sales transactions. Along with this, drafting the provision also includes different terms and conditions that need to be followed by both parties to render proper services.

2. Explain why an express clause in the contract

Moreover, the United Nations is considered a contracting state of CISG while Ireland is not considered to the part of the convention therefore, the express clause must be implemented within the contract. This clause within the contract acts as the essential term that settles down all the disputes litigated in California (Hoefele, SchmidtEisenlohr and Yu, 2016). Along with this, the contract would be also not engaged under CISG as it mainly governs the activities of those parties who are the parties within the convention. The convention mainly governs the activities of such parties who are part or member states of the convention. Therefore, it is stated that the express clause in the contract requires all disputes to be litigated in California.

Conclusion

The aforementioned report summarizes the case scenario and different provisions that are related to international sales. It also summarized that the contract was repudiated earlier by Liquor Sales Co. Therefore If Single Malt initiates litigation over its claim for damages stemming from the alleged repudiation then it will probably bring its suit in Ireland. Moreover, it also focuses on the provision of CISG on the different companies existing in the different states.

References

  • Antràs, P., 2013. Goes Global: Incomplete Contracts, Property Rights, and the International Organization of Production. Journal of Law, Economics, and Organization, p.ews
  • Azhar, S. F. B. N., 2017. Battle of Forms in the Formation of International Commercial Contracts: An Assessment of their Comparative Merit. Vancouver Journal of International Business and Law. 1(1).
  • Hoefele, A., Schmidta Eisenlohr, T. and Yu, Z., 2016. Payment choice in international trade: Theory and evidence from across country firm-level data. Canadian Journal of Economics/Revue canadienne de'conomique
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