Question
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 FOB port of Saigon, Vietnam. 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 CFR 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
cost 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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started