Law for International Trade
BTW3201
International Trade Law
Assignment 2
Jesse Cooper, 21476608
Part A:
On the face of it, or prima facie there are three issues that are raised in this case. Firstly, the jeans were delivered late; secondly, the jeans were mouldy and stained; and finally, an incorrect number of jeans were delivered.
In order to determine the rights and obligations of Punked Jeans, and which remedies could be availble, there are a number of steps to be taken.
What are the governing laws of the case?
The governing law of an international contract is important because is defines which domestic system of laws apply to the contract. The governing law is used in the case of disputes between the buyer and seller in the international sale of goods.
In Australia, determining the governing law of a contract is based on two cases, John Kaldor v Mitchell Cotts Australia (1989) 90ALR 244 and Akai Pty Ltd v The People’s Insurance Co Ltd [1996] HCA 39 (PM69). These cases create three ways to determine the governing law of a country, the contract itself; the contract and surrounding documents; and the objective test, which determines which laws the contract has the most real and substantial connection to, based on a variety of factors. Because no terms in the contract or surrounding documents explicitly stated which governing law would be used it will be decided by the objective test.
The most real and substantial connection is based on factors including the country in which the majority of the obligations under the contract are performed, e.g. manufacture, packaging, delivery; where the contract was formed, and what the currency of payment is. In this case the manufacture and packing is conducted in Australia, and the payment is in dollars and not yen, which would indicate the governing law is that of Australia.
Under Australian law the rights and obligations of the parties are based on the contract, the Convention on International Contracts for Sale of Goods
International Trade Law
Assignment 2
Jesse Cooper, 21476608
Part A:
On the face of it, or prima facie there are three issues that are raised in this case. Firstly, the jeans were delivered late; secondly, the jeans were mouldy and stained; and finally, an incorrect number of jeans were delivered.
In order to determine the rights and obligations of Punked Jeans, and which remedies could be availble, there are a number of steps to be taken.
What are the governing laws of the case?
The governing law of an international contract is important because is defines which domestic system of laws apply to the contract. The governing law is used in the case of disputes between the buyer and seller in the international sale of goods.
In Australia, determining the governing law of a contract is based on two cases, John Kaldor v Mitchell Cotts Australia (1989) 90ALR 244 and Akai Pty Ltd v The People’s Insurance Co Ltd [1996] HCA 39 (PM69). These cases create three ways to determine the governing law of a country, the contract itself; the contract and surrounding documents; and the objective test, which determines which laws the contract has the most real and substantial connection to, based on a variety of factors. Because no terms in the contract or surrounding documents explicitly stated which governing law would be used it will be decided by the objective test.
The most real and substantial connection is based on factors including the country in which the majority of the obligations under the contract are performed, e.g. manufacture, packaging, delivery; where the contract was formed, and what the currency of payment is. In this case the manufacture and packing is conducted in Australia, and the payment is in dollars and not yen, which would indicate the governing law is that of Australia.
Under Australian law the rights and obligations of the parties are based on the contract, the Convention on International Contracts for Sale of Goods