The University of Law COMMERCIAL LAW AND PRACTICE Unit 5 Guide International Trade Context The Units so far have concentrated on domestic sale of goods. The focus now is on contracts for international sales. In many ways these contracts are just the same as those for domestic sales, but a number of further issues arise because of the distances involved and because the parties are in different countries. The transport and financial arrangements are necessarily more complex. In addition, jurisdictional issues can arise in relation to disputes. As more and more companies enter the global market, either by exporting their own products or importing those of others, increasingly lawyers need to understand the logistics of international trade. A lawyer must anticipate the risks to which their clients are exposed, both commercial and financial, and manage those risks, as this is crucial to safeguard the client's interests. Standard terms and conditions of sale will still play an important role in this process but must be adapted to address the different risk profile of an international contract. Outcomes On completion of this Unit you should be able to: 1. Choose an appropriate Incoterms arrangement and explain the consequences of your choice. 2. Describe the workings of an international sale of goods and explain how transport documents, bills of exchange and documentary credits can be used to address the concerns of the parties and manage identified risks. Unit Workshop Tasks In this Unit Workshop you will: 1. Review a task on choice of appropriate Incoterms taking account of the client's commercial objectives. 2. Identify and address your client's main concerns in relation to a proposed transaction with a new international customer. 3. Advise your client on the role of commercial documents and international banking arrangements to provide for and guarantee payment. c5077cc05b310ea4ba70ca1c8ab332af.docx 161 @ The University of Law Limited
The University, of Law Preparation To prepare for this Unit Workshop you should: 1. Watch Recorded Lecture 3: International Trade. 2. From the textbook, read Chapter 13, Chapter 15 (excluding paragraph 15.5) and Chapter 16. 3. Complete the Test and Feedback Exercise entitled Unit Workshop 5 (Preparation). 4. Prepare an answer to the Preparatory Task attached to this Unit Guide. Materials required for the Unit Workshop 1. Your Commercial Law and Intellectual Property Law and Practice textbook 2. The reading and notes you have made by electronic or hard copy 3. The Preparatory Task attached to this Unit Guide and your answer 4. The Instructions for Student B which were provided in Unit 1 Consolidation It is important that you consolidate your learning. In particular you should: 1. Review the Preparatory and Unit Workshop Tasks. 2. Complete the Test and Feedback Exercise entitled Unit Workshop 5 (Consolidation). @ The University of Law Limited 162 c5077cc05b310ea4ba70ca1c8ab332af.docx
The University Low PREPARATORY TASK Read the attached e-mail from Steven Walsh, Floidex's sales director. Your supervising partner, Jayne Elliott, has asked you to brief her on the questions Steven has raised. Your advice will be based on your