Chapter 4 - Lesson 1 The Conclusion of Sales Contracts Case Study Company ABC in China exported a batch of water heaters to JR company in the United States. Company ABC sent a quotation by cable to company JR on March 8, 2012: "30,000 units of Haier water heaters, USD 35 per unit FOB Dalian, L/C at sight on May 6, valid for reply within 3 days". . On March 10, JR replied: "accept your offer of March 8, CFR New York USD37 per unit". ABC responded on March 12, "we only accept USD45 per unit CIF New York, please confirm." The message was sent at 9:00 a.m. At 9:30 a.m., ABC noticed a change and issued a withdrawal notice at 9:35 a.m. The original message arrived at 10:10 and the withdrawal notice arrived at 10:05. . On March 14, JR replied: "we regret that we are unable to accept your offering on March 12, CIF New York $40 per unit please reply as soon as possible." On March 16, JR sent a telex again, "we agree to CIF New York at $45 per unit, after persuading wholesalers." On March 18, ABC responded: "the goods are sold. We will contact you when we have the goods." ABC quoted again on March 28: "we have contacted the factory to offer 20,000 units of Haier water heater CIF New York at $50 per unit, shipment in June, L/C at sight." JR replied on March 30: "accepted telex of March 28, place of arbitration: Singapore." ABC responded on April 1: "unacceptably, arbitration in China." JR replied on April 3 : "accept arbitration in China." ABC sent a telex on April 5: "L/C at sight available before April 15 to ensure delivery." JR replied on April 7: "L/C will be opened by Citibank Beijing branch." QUESTION: Answer the following questions and give reasons. 1. Is the contract established on March 10? 2. Can company ABC successfully withdraw the offer after it issued the withdrawal notice on March 12? 3. Is the contract established on March 16? 4. Is the contract established on April 3? Chapter 4 - Lesson 1 The Conclusion of Sales Contracts Case Study Company ABC in China exported a batch of water heaters to JR company in the United States. Company ABC sent a quotation by cable to company JR on March 8, 2012: "30,000 units of Haier water heaters, USD 35 per unit FOB Dalian, L/C at sight on May 6, valid for reply within 3 days". . On March 10, JR replied: "accept your offer of March 8, CFR New York USD37 per unit". ABC responded on March 12, "we only accept USD45 per unit CIF New York, please confirm." The message was sent at 9:00 a.m. At 9:30 a.m., ABC noticed a change and issued a withdrawal notice at 9:35 a.m. The original message arrived at 10:10 and the withdrawal notice arrived at 10:05. . On March 14, JR replied: "we regret that we are unable to accept your offering on March 12, CIF New York $40 per unit please reply as soon as possible." On March 16, JR sent a telex again, "we agree to CIF New York at $45 per unit, after persuading wholesalers." On March 18, ABC responded: "the goods are sold. We will contact you when we have the goods." ABC quoted again on March 28: "we have contacted the factory to offer 20,000 units of Haier water heater CIF New York at $50 per unit, shipment in June, L/C at sight." JR replied on March 30: "accepted telex of March 28, place of arbitration: Singapore." ABC responded on April 1: "unacceptably, arbitration in China." JR replied on April 3 : "accept arbitration in China." ABC sent a telex on April 5: "L/C at sight available before April 15 to ensure delivery." JR replied on April 7: "L/C will be opened by Citibank Beijing branch." QUESTION: Answer the following questions and give reasons. 1. Is the contract established on March 10? 2. Can company ABC successfully withdraw the offer after it issued the withdrawal notice on March 12? 3. Is the contract established on March 16? 4. Is the contract established on April 3
