International Sales of Goods by Sea Essay Example | Topics and Well Written Essays - 4500 words

International Sales of Goods by Sea - Essay Example This is to ensure that no material losses occur to the goods during transit. The liability of the seller under CIF is larger than under FOB, in that, the responsibility of the goods, vests with the seller until it is loaded onboard the ship. In other words, the liability is not restricted until it is entrusted to the carrier, but remains intact until the shipments are aboard the ship. Any losses that occur during the intervening period would fall upon the seller, and not anybody else. Thus, the Academy could initiate action against Llodd’s in respect of the books having missing pages. Under Section 14 (2) (a) of Sale of Goods Act, it is seen that â€Å"where a seller sells goods in the course of a business, there is an implied term that the goods supplied under the contract are of satisfactory quality. It provides that goods are of satisfactory quality if they meet the standard that a reasonable person would regard as satisfactory, taking account of any description of the goods, the price (if relevant) and all the other relevant circumstances. Again, under Section 13 of the Sale of Goods Act, sale of goods by description, it is incumbent on the part of the seller to ensure that the goods match the description; otherwise the buyer is at liberty to repudiate the treaty, and /or claim damages for compensatory damages. (Sale of Goods Act 1979). Again under the provisions of Section 11 of the Sale of Goods Act 1979, it is seen that when a contract of sale is incumbent upon certain conditionality to be fulfilled by the seller, especially in a CIF contract, the buyer has the options either to excuse the conditions or may elect to treat the breach of condition, as a breach of warranty, which may not be cause for action of cancelling the contract. There may be certain aspects surrounding the case that could suggest whether the requirement could be treated as a condition precedent, in which case the buyer could elect to cancel the contract or, in cases,