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Seller (ABC Trading Co, Vietnam) offers 100 tons of coffee to Buyer (Zin Co., Japan) with the following conditions: Q1. Seller agrees to deliver the

Seller (ABC Trading Co, Vietnam) offers 100 tons of coffee to Buyer (Zin Co., Japan) with the following conditions:

Q1. Seller agrees to deliver the goods to buyer under the term of CFR port of Osaka, Japan. The goods were transported and unloaded at the

port and kept at customs shed for inspection and payment of duties. The buyer was notified of the arrival of the merchandise and its location. Before the buyer picked up the goods, the customs shed (including the merchandise in it) was destroyed by fire. The buyer claims refund of the purchase price stating that buyer did not receive the goods. Is the seller responsible? Why?

Q2. Seller agrees to deliver the goods to buyer at the following prices: (1) USD120,000 FOB Saigon port; USD140,000 CIF Osaka port; USD160,000 DAP at buyer's warehouse in Osaka, Japan. Freight cost including loading fee to bring the goods from Saigon port to Osaka port is USD15,000. Transportation ost including loading and unloading fee to bring the goods from Osaka port to the buyer's warehouse is USD10,000; Insurance rate is 0.2%. Import duty is 5% of the FOB price.

1. Buyer will choose to buy at what price? Why?

2. What must the seller pay costs and bear risks under the term of DAP at the buyer's warehouse in Osaka?

3. Discuss the major differences between CIF and DAP?

Q3. Buyer agrees to pay by irrevocable letter of credit (L/C) at sight. Discuss the procedure of L/C. Compare the role and responsibility of

banks in documentary collections and letters of credit. Q4. Seller offers 100 tons of coffee to buyer at the selling price of USD120,000 FOB Saigon port, prepare export proposal to negotiate with the buyer. Discuss ZOPA (Zone of Possible Agreement) and how to create more value to deal?

Q4.Seller offers 100 tons of coffee to buyer at the selling price of USD120,000 FOB Saigon port, prepare

export proposal to negotiate with the buyer. Discuss ZOPA (Zone of Possible Agreement) and how to

create more value to deal?

Q5. Find out the mistakes including the errors and missing of the following sales contract and explain? SALES CONTRACT Date: March 25, 2020 Party A: ABC Trading Co, Ltd. (Vietnam) Hereinafter referred to the Seller

Party B: Zin Co, Ltd. (Japan)

Hereinafter referred to the

Buyer Both parties have agreed to sign the contract with the

following terms and conditions:

1. Commodity: Coffee

2. Quality: as export coffee

3. Quantity: 100 tons more or less 5%

4. Price: USD1,300/T CIF Saigon port

5. Payment: By L/C to be opened not later than March 23,

2020.

Issuing bank: Vietcombank, Vietnam.

Notifying bank: HSBC Bank, Japan.

The buyer will present following documents:

- Pro Forma Invoice - Certificate of Quality and Quantity

- Packing List

- Bill of Lading marked Freight to collect at destination made

out to order of bank

- Certificate of Origin form D

- Insurance Certificate

- Other documents

6. Delivery: not later than March 24, 2020. Partial shipment: allowed. The buyer will advise the seller the name of vessel not later than five (05) days before shipping date by fax

7. Insurance: will be covered by the Buyer

8. Arbitration: all disputes arising out of this contract or breach thereof which cannot be settled amicably by the parties concerned shall be settled by the Arbitration.

9. Force majeure: will be informed.

10. Effective date: the contract will come into force from the signing date. The contract is made in two (02) copies in English.

Q6. Base on question 5, write the sales contract correctly and

completely.

Q7. As seller, discuss the steps to implement the sales contract

as in question 6.

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