Law chosen to govern a transactions is clearly state the legal consequences of their contractual activities for example the right, obligation, and remedies for involve parties, and they can choose the law of particular country or international law to govern their contract. International trade law (CISG) includes the appropriate rules and customs for handling trade between states and it forms part of domestic law if the involve parties are from the contracting state of CISG. With assistance from Unification of Private Law (UNIDROIT) for filling gap in the coverage of issues by the CISG which is the validity of contract, effect of contract on property and goods, exclusively or non-sale aspects for distribution agreement, and inability of sell for death or personal injury cause by the goods on any person.
The domestic law that governs the transactions in Malaysia is the Contract Act 1950 and supplement from Sale of Goods Act (SOGA) 1957 (revised 1989) which is based on the English Sales of Goods Act. As a Malaysian lawyer, I recommend you choose the Contract Act 1950 and SOGA as the governing law because the business you based is on Malaysia home soil and it creates a familiar factor to you. Besides that, Contract Act 1950 and SOGA already govern the basic contract of goods and contract of insurance but they did not cover the contract of carriage. However, because of Malaysia still practices the Hague Rules by virtue of the Carriage of Goods By Sea Act 1950 (Revised 1994), you have to choose the Hague Rules to govern your contract of carriage even though there are prominent weaknesses. For contract of carriage, there is standard term used on trading call as International Commercial Terms (INCOTERMS), and Cost, Insurance and Freight (CIF) and Free On Board (FOB) are the generally used term in the trade. So, I recommend you to practice FOB even through your product price will slightly lower due to bargain from buyer, but the cost will reflect on save at the... [continues]
Cite This Essay
(2010, 11). International Trade Law. StudyMode.com. Retrieved 11, 2010, from http://www.studymode.com/essays/International-Trade-Law-493401.html
"International Trade Law" StudyMode.com. 11 2010. 11 2010 <http://www.studymode.com/essays/International-Trade-Law-493401.html>.
"International Trade Law." StudyMode.com. 11, 2010. Accessed 11, 2010. http://www.studymode.com/essays/International-Trade-Law-493401.html.