ch 11 trade documentation Flashcards
(37 cards)
basic principle of trade and documentation
control and liability
most common reason of documentation
fulfillment regulations
documents are often associated with insurance or bank policies that limit a party’s ……. in an international shipment
manage risk
there are things that dont necessarily need to be written down, but internatinoal transactions are complex and work with different languages and cultures. documents serve as a…….
common understanding
the term documentation implies …… , maintaining official records of an organizations activities. some is legally required, but much is the organizations choice
record keeping
The 4 types of documents
transportation, banking, commercial, government
documents used for the physical movement of the cargo
transportation documents
documents used for the financing of shipment
banking documents
documnets used for the purchase of goods
commercial documents
filfill government regulations. there are 2 main roles of documentation, business related and law-related. this document serves the needs of a business and the government
government documents
refers to the sale of goods in which ownership on the paper documents is more important than the physical possession of the goods
documentary sale
do not conflict with different computer systems. easier to see which is the official copy.
paper documents
can be trasnported anywhere in the computer world in seconds, an infinite number of copies can be made, also in seconds. not always clear which is the official record
electronic documents
used to discourage imports and increase their costs, sometimes to the point where trade is no longer profitable
non-tariff barrier (NTB)
on of the roles of documentation was to control risk. requireing proper documentation can control theft and the trafficking of stolen goods
cargo security
a concern in all aspects of documentation when communicating with the government and other companies. some info is a matter of public record, semi-private, while others can be very sensitive
confidentiality
sets the standards for most of the documents we are concerned with. applies when there is a commercial sale of goods between two parties in different countries
UN Convention on Contracts for the International Sale of Goods (CISG)
the basic law governing sales and contracts of sale, established in 1951
Uniform Commercial Code (UCC)
the primary international organization that seeks uniformity in trade law, including documentation
UN Commission of International Trade Law (UNCITRAL)
the 4 parts to a legally binding contract
- Offer and acceptance
- Consideration
- Legal Capacity
- Not be for Illegal Purposes
states that what is offered must exactly be what is accepted. any changes may be considered a counteroffer
mirror image rule
you cannot claim a breach because of a little problem
fundamental breach
a buyer can simply no accept a shipment if there is a breach, but this may only be done after the seller has been notified
right of avoidence
seller can fix the problem and the right to additional time to perform
right to remedy
