Case study of international trade finance

3 questions are there to be answered.

John and Eric are childhood friends who went to school and university together. After graduation, John moved to Spain where he joined his family and started a business exporting authentic Spanish Artwork to clients around the World. Eric operates a retail store in Brazil, and the two friends agreed to start a business together. John would send artwork to Eric who would sell it in his store at a reasonable price. John shipped the Artwork by mail to ensure quick, timely delivery. Eric verbally agreed to pay John 30 days after shipment and they would split the profits equally, with each party getting 50 percent. 45 days after shipment, John contacted Eric to see how things were progressing. Eric informed John that the Artwork had not sold. He indicated some potential buyers had shown interest, but thought the art was priced too high. A month later, John called Erik to follow up and collect funds. Eric mentioned he had no cash on hand and his financial situation made it impossible to make any payments for the moment. Eric gave John the option to either take the frames back or sell them at cost. John is unable to obtain assistance from any of his friends and lawyers as there are no written contractual agreements signed. 4 months later, John followed up one last time. Eric mentioned he sold the frames for 25 percent of the asking price, and he did not transfer any funds for payment of artwork and additional costs. John lost $9,000 worth of goods and a friend that he trusted.