FOB is a free instrument that specifies the loading and the port of landing. It is also because the buyer has to nominate the ship and the seller to load the goods onto the vessel. The seller bears the costs of transfer, handling and loading. The seller has to make arrangements of issues like insurance. However, he is not responsible for freight charges. Under English law, no export license is mandatory. This is the reason as to why the goods being got dump during transit. LDS had an obligation to look into those issues after shipment10.
The Buyers Right to reject the Documents
In English law, cost insurance and freight, the buyer can reject a tender of the documents of shipping either where they are faulty or where their tendering is late. Documents are defective due to a number of reasons. For example, a fake Bill of Lading, which is defective as Bill of Lading does not provide the buyer with long lasting documentary cover. In general, the seller's role regarding the documents is very stern. Roskill L.J. said that seller's role on documentation is sacrosanct. This is due to the highest authority and the implied or express provisions in a c.i.f. contract, in those compliments that are of the class any breach of which, there is justified rejection. This is the same way the UKD also rejected the documentation. They were in line with the law11.
Sacrosanct life of obligations of the documents is clear since a c.i.f. buyer is capable of rejecting documents that show defects in the goods even where the defect would not substantiate the rejection of the goods. Although there is the clear statement of principle, is there need for letting documents that are nearly all right? There is In Tradax Internacional S.A. v. Goldschmidt S.A. case. The sellers sold to the buyers 8,000 tones 5% more or less of White Syrian Barley on f.o.b. stipulations. The contract provided, inter alia, that the goods contain less than 4% foreign matters.
A certificate of quality is available with the other shipping documents. The sellers tendered the documents of shipping to buyers who rejected them because the certificate of quality showed 4.1% of foreign matters. No condition implied by section 14 was important. At the court, Slynn L.J. ruled against the buyer. Unfortunately, if UKD faced this court system, then they could have lost. Therefore, it is important for the UKD to look into the right jury to table their complaints12.
The case is not an easy one, particularly because of the enactment of Section 15 A; it provides a number of difficulties. Treitel explained Benjamin’s case as one where the tendered certificate was non-defective. A document is not defective because it quotes that goods have a higher concentration of impurities than the contract allows for it. In the Tradax Internacional S.A. v. Goldschmidt S.A. case that the buyer did not reject the goods because no violation of the law occurred, the buyer should have not rejected the documents13.
The right to reject goods
The defendant should submit jurisdiction in the English court. The court may decide later that the lex situs is a forum non-conveniens. A rule of law may permit a claimant to help the defendant be away from jurisdiction. This happens within the European Union. A contract is the lawful binding agreement that is either deliberate or voluntary. It is usually between two or more competent parties. They are written, implied or oral. They generally apply to sale, employment, tenancy or lease.
The relationship contains the offer, acceptance of the offer and a valid, legal consideration. Every party attains rights and duties relatively the ones of the other party. The contract may become void. Sale contracts must be in written form. There are contract terms linked to the sales of properties laid down by the European Union. They define the rights and duties of parties therein. They have a standard contract terms that are beneficial to consumers as well as in facilitating commercial transactions. The unfair contract terms bring in the idea of good faith. It prevents significant imbalances in the obligations and rights of consumers while safeguarding that of the sellers and suppliers. The directive is under review in the Review of the Consumer acquis14.
There are contract terms linked to the sales of properties laid down by the European Union. They define the rights and duties of parties therein. They have standard contract terms that are beneficial to the consumers as well as in facilitating commercial transactions. The unfair contract terms brings in the idea of good faith. It prevents significant imbalances in the obligations and rights of consumers while at the same time, safeguarding that of the sellers and suppliers. The directive is under review in the Review of the Consumer acquis15.
The Consumer Sales and Guarantees also protect the sellers. Sellers of goods within the EU agree to the conformity of goods with a contract period of two years after goods delivery. Standards are available to help distinguish from the conformity and non-conformity. Consumers can ask for repairs, reduction in price, replacement or for a contract termination. This happens when goods are in non-conformity. The final seller in the chain of distribution holds the producer responsible for low quality goods. It aims at harmonizing the legal parts of the contract law of the consumer and to a lesser extent the commercial guarantees. Consumers must inform their respective sellers or suppliers of any conformity within two months of discovery; a clear draft of commercial guarantee contains the consumers’ legal guarantees16.