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International Business Transactions and the Law - Part A

Issue-

  1. Is there a contract between Jessabelle and Tim?

Legislation

United Nation Convention on Contracts for the International Sale of Goods (The Convention)

Precedents

Application

Part II of the Convention states the details of forming a contract. Article 14 of the Convention states that an offer is when a contract is formed between or among the parties who are definite to be bound by the terms and conditions of the offeror and in return gives his/their acceptance. A proposal where the quantity and price are decided, that is an offer under sale of goods act. Article 15 states that an offer is effective when it reaches the offeree. An offer can be withdrawn, even being irrevocable, if the information of withdrawal reaches the offeree before or at the same time when the offer is made. Article 16 gives the principle of revocation of the offer until it is accepted. It says that an offer is prone to be rejected if the information of revocation reached the offeree before his acceptance. Under a certain situation, it cannot be revoked-

  1. If the revocation states the fixed time for acceptance, then the offer stands valid and cannot be revoked
  2. If the offeree acted on the offer believing it to be irrevocable.

Article 17 states that an offer can be terminated if the termination reaches the offeror. Article 18, clause (2), states that acceptance is complete when it reaches under the knowledge of the offeror. Acceptance is not completed if it does not reach the offeror within the fixed time, or if no time is fixed, an acceptable reasonable time. It is subjective and is based upon the test of subjectivity. Article 19, however, states that if a reply of the offer by the offeree, which should be about acceptance, states additions, limitations and modification of the offer, is a rejection of the offer and becomes a counter-offer.

Conclusion

In the given scenario, the conversation between Tim and Jessabelle was through electronic media. It was via mail. Since the inception, they both conversed through mails. When Tim asked 200 tonnes of red cedar of high quality to be shipped immediately, she replied it to be available. The conversation went ahead and Tim asked for the consignment to reach by 1 April to which Jessabelle also agreed. When there was conversation related to pricing so initially Jessabelle asked it to be $5000 per ton. Countering this Tim replied that it was expensive and gave a counter-offer of $4000 per ton and payment after 6 months. Throughout this, Tim was the offeror and Jessabelle the offeree. But at the pricing situation, Jessabelle has become the offeror and Tim the offeree. Then again, Jessabelle replied to Tim's mail and accepted his deferred payment option but not the price of $4000 per ton. Tim again offered a catalogue of $4500 per ton, to which Jessabelle in order to accept the deal, disseminate a post to Tim accepting his offer. Now again Tim is the offeror and Jesssabelle the offeree.

Now as per section 18(2), which states that an offer is accepted when it reaches under the knowledge of the offeror. It is not completed if the offeror does not know of it as per the fixed time. Here Tim expressed his intention that by April 11 he needs the consignment to which Jessabelle agreed to dispatch by 10 march. Having not done that, she dispatches her letter of acceptance of 10 March. So firstly, the acceptance has not been completed if one is to interpret section 18 (2) of the Convention.

Then comes section 19 of the Convention. It states that if a reply to the offer made before has some alterations, modification or additions to it, which actually the offeree intends to be an acceptance, that shall not be termed to be acceptance. It shall be a rejection of the offer and it becomes a counter-offer. Similarly, in this in the end-stage Jessabelle is the offeree and Tim is the offeror. She dispatches a letter of acceptance of 10 March consenting to offer of Tim of $4500 per ton. So as per the legislation, that shall be a rejection of the offer and not acceptance.

So to conclude, Jessabelle is not under a contract with Tim and hence she must not go for any suit against Tim for buying the same product from a timber supplier from Canada. She is not obligated by the contents of the contract as there wasn’t any acceptance from her part.

International Business Transactions and the Law - Part B

Issue

Liability of Jessabelle

Legislation-

UN Charter

Tort Law

Application-

The UN Charter gives the Security Council the prime responsibility of maintaining international peace and security. In lieu of this, the Council has founded a UN peace operation. Since years, the tasks that have been allotted to UN peace operations, they have increased their horizon to other forms of conflict and also addresses the international threats and security in a more fervent way. The Security Council is the one who shall decide the jurisdiction of the peace operations[1]-

  1. Deployment of forces to prevent any conflict across borders
  2. To stabilise the situations after the ceasefire. This is done to maintain ever-lasting peace
  3. Implementation of elaborative peace agreements

Furthermore, it also indulges into-

  1. Any action on mines
  2. Disarmament
  3. Demobilization
  4. To protect and promote human rights
  5. To promote social development and economic recovery

The rule of law of UN peacekeeping is to manage and diminish the conflict between or amongst individuals. This can be done by assisting the procedure of national policy and conflict mechanism. It also works on firming up the rule of law of domestic countries by helping them maintain peace and security in their countries, re-forming the communities who have gone extinct and establishing a mechanism for maintaining peace[2].

As for the given case, so Jessabelle does owe a personal liability to Emu Grains Pty Limited. It was their ship's master negligence that leads to lead to a hole in the hull and due to which the wheat consignment was destroyed. He went asleep where no other was available on the cargo who was competent enough to take charge of the cargo. As a result for the remaining of the voyage, the cargo was left idle.

Conclusion

To conclude, it was the negligence of the cargo's shipmaster that the consignment as promised by Jessabelle to Emu Ltd. was destroyed. Since the cargo was of Jessabelle so all the workers on the cargo were a responsibility of Jessabelle. They were working in the cous=rse of their employment. As per the tort of vicarious liability, the ship-master negligence shall be borne by Jessabelle and she must reimburse Emu for the loss it suffered.

On the other hand, it could be possible that Jessabelle can sue the UN Peace Keeping Forces. Reason being, the jurisdiction of peacekeeping forces as per the UN guidelines, it is operative for maintaining peace and security amongst the borders and countries. There is no mention of its jurisdiction on international waters whatsoever. So to interpret it, Jessabelle can challenge the seizure of its cargo as the forces did not mention on what clauses or under legislation did they find it legal to confiscate the cargo.

Bibliography for United Nations Peacekeeping

 Legislation

United Nation Convention on Contracts for the International Sale of Goods

United Nations Peace-Keeping

Torts

Online Articles

United Nations Peacekeeping, ‘Mandates and the legal basis for peacekeeping.’ (2020) <https://peacekeeping.un.org/en/mandates-and-legal-basis-peacekeeping >

United Nations Peacekeeping, ‘Building rule of law and security institutions.’ (2020) <https://peacekeeping.un.org/en/building-rule-of-law-and-security-institutions>

[1] United Nations Peacekeeping, ‘Mandates and the legal basis for peacekeeping.’ (2020) <https://peacekeeping.un.org/en/mandates-and-legal-basis-peacekeeping >

[2] United Nations Peacekeeping, ‘Building rule of law and security institutions.’ (2020) <https://peacekeeping.un.org/en/building-rule-of-law-and-security-institutions>

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Law Assignment Help

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