Case Study

Phua Chu Kang Ltd (PCK) is a leading commodity trading company headquartered in Singapore.

Crocodile Dundee Ltd (CD) is a company that processes, packs and sells soybeans from over 20 farms across Australia.

PCK purchased 100 metric tons of "Australian grown non-GMO (non-Genetically Modified) soybeans" from CD. The purchase was made under a CIF contract, goods to be shipped to Hong Kong from Port Kembla, New South Wales, Australia, latest date of shipment, March 15, 2018.

[Treat the additional facts in each part of the following questions independently from the other parts.]

Additional facts

When the goods arrivedin Hong Kong, the soybeans were tested by a laboratory in Hong Kong and found to be genetically modified soybeans. PCK promptly emailed the laboratory results to CD, complaining of the non-conformity.

Question 3 -

1. Does the UN Convention on the International Sale of Goods ("CISG") apply to PCK's contract with CD? Would your analysis change if the goods were electrical irons? How about if PCK was a company incorporated and doing business in the United Kingdom? (12 marks)

1. Can PCK can claim damages and avoid the contract under the CISG?

(12 marks)

Would your analysis in (ii) change if:

(a) PCK's own employee had forgotten to send the soybeans for immediate testing in the laboratory, but only remembered to do so 2 months after their arrival in Hong Kong?(10 marks)

1. What about specific performance in this situation? Of the two potential remedies (damages and specific performance), which in your opinion, is the better one for PCK to seek?(6 marks)

Support all your answers with relevant articles of the CISG (if any).