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CONTRACT FORCAUSTIC SODA
GROUP 6 EMBA 9B
Nguyen Hung Son
Tran Trung Thanh
Nguyen Trung Thanh
Nguyen Quang Phuong
Asscoc. Prof. Tran Van Nam, Ph.D
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SITUATION & PROBLEMS1
ANSWER QUESTIONS2
3
Q & A4
RECOMMENDATIONS
AGENDA
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EMBA9BSITUATION
Consulting
Quotation Negotiation
Co.A: Buyer
OMK Pte Ltd:Representative Office
Contract consulting
Co.H: SellerContract: 10
tons, 99% CIF14/04/2009
Co.A: BuyerCo.H: SellerLC: 23/04/2009
Warehouse
28/05
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OMK Pte Ltd
Co.A: Buyer
d Soda!ek it now!
We dont
believe!
29/05
36%only!
29/05
01/06
Stop LC
Return goods +Compensate 21
250$
01/06
Compensate
103 mill VNDfor damage
24/8
Co.H: Seller
Hai Phong Court
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QUESTIONS
1. Has the Company A complied with his obligations underthe contract? If not, has Company A made any mistakes?Why?
2. Has OMK Pte Ltd been considered as the actual seller of
10 tons of Caustic soda to Company H? If yes, what momentthat the deal between Company A and OMK Pte Ltd wasformed?
3. As a broker, what are the obligation of OMK Pte Ltd is tothe Company A, if he/she accepts the inspection results of
the SGS dated 01/06/2009? 4. If OMK Pte Ltd absence at the trial of VIAC as to act as a
witness as required Company A, do you think that CompanyA has legal grounds to demand the seller from China(Company H) compensation damage? List the possibledamages.
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If contract regulatedapplicable law implement according to thecontract
REFERENCEDLAW
If contract unregulatedApplicable law
VIETNAM COMMERCIALLAW
+LAW ON E-
TRANSACTIONS
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SGSvalid
Company Hviolated
sustantial
A stop LC
No
N
No
Yes
Yes
HAS THE COMPANY A COMPLIED WITH HISOBLIGATIONS UNDER THE CONTRACT
SGSresult
A wright
ARTICLE 44, 51
A wrongA stop LC
Company Hviolatedpayment
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Represent of
H
No
Yes
Yes
Yes
OMK PteLtd
OMK is Seller
ARTICLE 18
OMK not aSELLER
OMK signed
contract withA
HAS OMK PTE LTD BEEN CONSIDEREDAS THE ACTUAL SELLER
Beauthori
zed
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Article 44/3+4
Inform Company Habou the quality ofgoods.
Reidentify good andconfirm the result of thetest.
Article 151
Witness forCompany A at thecourt
OBLIGATION OF OMK PTE LTDIS TO THE COMPANY A
Article 151
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EMBA9BIF OMK ABSENT AT THECOURT
If the contract is legal
If the inspection result of SGS is valid
Contract didnt mention to OMK
YES
DAMAGES
( in discussing)
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4
3
2
The company should hire consultants before signingcontract with foreign customers.
Contract should be noted and clearly related to the contentquality of goods, origin, method of transportation and
payment for goods
Research carefully before signing contract with customersor brokers
1
RECOMMENDATIONSWhen signing an international contract through fax, email, Note:
In contract, adds provisions to examine goods at theport of export
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Q & A