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Law Seminar: Chapter 8

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Law Seminar & Brief: Chapter 8

ANCILLARY CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS TRANSACTION.
Ancillary contracts are additional or supporting contracts between one of the main contracting party with third party for commercial transactions.
Freight forwarder offer intermodal services to export goods on behalf of shippers or cargo owners. Common services that freight forward provide are: full-service documentation, export packaging and container stuffing, marine insurance, letter of credit negotiation and analysis, consolidation and deconsolidation services. International freight forwarder can be either ocean freight forwarder or air freight forwarder.
The international transportation is unimodal when goods are carried with only one mode of transportation. While the goods are carried by more than one mode of transportation is multimodal.
If the goods are transported by see, an ocean bill of lading and ocean waybill are important documents for the contract. Container is used for ocean shipment and can be door to door or consolidated. A door to door is when exporter provides full container load, otherwise goods are taken to a container freight station to consolidate with the goods of other exporters.
When goods are transported by air the Air waybill will be provided by the carrier, who will be liable for damage of goods.
To ensure goods against losses during transportation exporter can buy insurance. Marine insurance is the most common to the international exporter.

FINANCING THE INTERNATIONAL TRANSACTION
To ensure that the goods are delivered on time, meet the terms and conditions of the contract and the payment are made. Most companies use letter of credit, issued by issuing bank, with whom corresponding bank makes payment to the exporter. The corresponding bank can be confirming bank or advising bank. Having bank as confirming is more secured,

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