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–19–
obligation is not dependent on the buyer himself having obtained
orders for the goods.
Since an export sale involves a foreign element, it will not neces-
sarily be governed by English law. An English exporter who wishes, as
he usually does, to have the contract governed by English law should
insert a stipulation to that effect. Even if the contract does not expressly
state that English law applies, a clause referring disputes to English
arbitration will have this effect.
TYPES OF CONTRACT
A number of different types of contract can be concluded, and
the question of which is best will usually depend on the type and size
of business which the exporter carries on.
Ex works. An ex works contract approximates most closely to a
domestic sale. The seller is bound to make available goods of the
contract description at the agreed time and place, and the buyer's
duty is to collect them. In the absence of contrary agreement the price
is payable on delivery and the property and risk will usually pass to
the buyer when the goods are unconditionally appropriated to the
contract. Where the buyer requires documents, such as an export
licence, which are obtainable in the seller's country, it is the duty of
the seller to assist the buyer to obtain them.
F.O.R. (free on rail). Here the seller's obligations are slightly
more extensive. He must see that the goods are loaded onto the railway
authority's collecting vehicle and, at his own expense, he must give
immediate notice to the buyer that this has been done. The presenta-
tion of an invoice or advice note is sufficient for this purpose. Once
the goods have been delivered to the railway authority, the property
and risk pass to the buyer, and the price becomes payable. The duty to
assist the buyer with regard to the obtaining of documents is the same
as on an ex works contract. The buyer must, of course, make his own
arrangements for carriage and must pay the freight. He must also
inform the seller of the destination of the goods.
F.A.S. (free alongside). Under this contract, it is the duty of the
seller to place the goods, at his own expense, alongside a ship named
by the buyer. The buyer, for his part, must nominate a ship and give
adequate notice to the seller, and the loading of the goods onto the
ship is also the buyer's responsibility. Property and risk pass when
goods have been placed alongside.
obligation is not dependent on the buyer himself having obtained orders for the goods. Since an export sale involves a foreign element, it will not neces- sarily be governed by English law. An English exporter who wishes, as he usually does, to have the contract governed by English law should insert astipulation to that effect. Even if the contract does not expressly state that English law applies, a clause referring disputes to English arbitration will have this effect. TYPES OF CONTRACT A number of different types of contract can be concluded, and the question of which is best will usually depend on the type and size of business which the exporter carries on. Ex works. An ex works contract approximates most closely to a domestic sale. The seller is bound to make available goods of the contract descri ption at the agreed time and place, and the buyer's duty is to collect them. In the absence of contrary agreement the price is payable on delivery and the property and risk will usually pass to the buyer when the goods are unconditionally appropriated to the contract. Where the buyer requires documents, such as an export licence, which are obtainable in the seller's country, it is the duty of the seller to assist the buyer to obtain them. F.O.R. (free on rail). Here the seller's obligations are slightly more extensive. He must see that the goods are loaded onto the railway authority's collecting vehicle and, at his own expense, he must give immediate notice to the buyer that this has been done. The presenta- tion of an invoice or advice note is sufficient for this purpose. Once the goods have been delivered to the railway authority, the property and risk pass to the buyer, and the price becomes payable. The duty to assist the buyer with regard to the obtaining of documents is the same as on an ex works contract. The buyer must, of course, make his own arrangements for carriage and must pay the freight. He must also inform the seller of the destination of the goods. F.A.S. (free alongside). Under this contract, it is the duty of the seller to place the goods, at his own expense, alongside ashi p named by the buyer.The buyer, for his part, must nominate ashi p and give adequate notice to the seller, and the loading of the goods onto the shi p is also the buyer's responsibility. Property and risk pass when goods have been placed alongside. – 19 –
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