Question

A Chinese exporter exported 5000 sets electrical household appliances to an importer on the basis of USD 600 per set CFR Los Angeles. Both parties agreed to stipulate the following in the contract: "..... 40% payment by T/T in advance and 60% payment by D/P 90 days after sight. The buyer should remit the 40% of total value on or before September 30, 2008. Shipment from Chinese port to Los Angeles, not later than Oct. 21", 2008. Packed in wooden box fumigated more over 12 hours with H2S gas. Partial shipment and transshipment are prohibited. ......" After received buyer's remittance money September 28th, the exporter shipped 3000 sets in Shanghai Port on Oct. 4th, 2008, then sent shipping advice on time to the importer and got one set of clean on board B/Ls. Then the exporter shipped the other 2000 sets on board the same vessel in Guangzhou Port on Oct. 8th, 2008, sent shipping advice on time to the importer and got other one set of clean on board B/Ls. And then the vessel began to sail to Los Angeles. 1. Whether the seller has breached the contract provision of "Partial shipment and transshipment are prohibited" or not? Why? (10%)

Answer 1

in the green problem it to agreed between the chinese exporter and importer on hos angles that 40% payment in advance and should be before Sep 30th 2008 shipment from chinese fort to los angles not later than oct-21-2008 partial shipment and transshipment are prohibited. In the given Sihan Situation breach of contract will not take place because the seller does not violated the contract for fortal Shipment or the statement Portal Shipment and transshipment are prohibitted" does not effected by seller's action. The reason is the seller sent the goods in two parts bo 3000 and 2000 but is so Sami Vessel and some ship there for the exportér doest does not violated the rule of partial shipment is prohibited. If he shipped I send goods in different to Ships the he well be liable for breach of Contract Scanned with CamScanner