International Trade Contracts Essay Example | Topics and Well Written Essays - 2500 words

International Trade Contracts - Essay Example As noted by Hannold, both English law and the CISG maintain that if a sales contract stipulates that the seller deliver the goods to the carrier or buyer at a specific location and time, and if the goods are delivered in the required condition, risk of damage passes from the seller to either the buyer or the carrier (depending on whom they were delivered to).2 In this case, and as is evident from the fact that B contracted directly with C, with S being responsible for the delivery of the wine to C at a specified place (quayside) the risk of damaged passed from S to C. In other words, as per both English law and the United Nations Convention for the International Sale of Goods, B cannot sue S who rightly claimed that his responsibility ended at the quayside. While B cannot sue S, he is entitled to sue C. The validation of the aforementioned assertion necessitates a brief review of relevant CIF terms, English law and case law. In accordance with the CIF contractual matrix, and as further supported by the laws governing marine transport and insurance, inclusive within the parameters of contracts for the maritime transport of goods is a guarantee that the goods will be delivered in the condition that they were originally delivered to the carrier in. In further guarantee of the stated, and as established by both English law and CIF terms, an insurance policy covering the economic value of the transported goods is included within such contracts.3 In direct reference to B's case, the implication here is that upon his entrance into contract with C for the delivery of the wine, and given that the assumption here is that S delivered them to C in the required condition, C is liable for the damages. The fact that B is entitled to hold C liable for the damages to the wine and is in a position to sue him according is further established by English case law. In Bayview Motors Ltd -v- Mitsui Marine and Fire Insurance Co., et al., [2002] the buyer contracted for a consignment of motor vehicles, whose specifications were clearly outlined in the contract. However, the goods he ultimately received were non-confirming consequent to the fact that they had been damaged during shipment. The seller successfully proved that the goods he had delivered to the carrier met the contractual requirements and therefore, established passage of risk. The buyer, thus, sued the carrier and the court found in favour of the claimant and held the carrier responsible for the damages.4 The aforementioned case is immediately relevant to the one at hand, insofar as it invaluably aids in the identification of the party responsible for the damaged consignment. Quite simply stated, passage of risk applied upon S's delivery of the goods to C in the required condition. The fact is that the goods were damaged during shipment and irrespective of whether C or his master of ship knew of the presence of the AFWA, the law is clear: C is responsible for the damages once he took possession of the goods at the quayside and, especially since S delivered them in the required condition. To this extent and given both the parameters of English law and CIF, B is entitled to sue C. (2) Even though, as previously stated, B is not responsible for t

Do Divestitures Have PositiveWealth Effects Literature review

Do Divestitures Have PositiveWealth Effects - Literature review Example Therefore, it can be said that a concept of divestiture is the opposite of an investment. The concept of divestiture is very much different from the concept of personal finance. Under the concept of personal finance, the investors sell out their business shares so as to meet their personal objectives. The major scope of a divestiture is that it allows the concentration of business resources in the market, and this process makes the business more profitable. This literature review tends to evaluate the positive wealth effects of divestitures. Motives behind divestitures Evidently, divestiture processes have been gradually increasing since 1990s. According to Kiymaz (2006), the gradually increasing divestiture can be clearly attributed to widespread corporate restructuring activities. The Author points out that the volume of divestitures has increased since 2,057 in 1993 to 3,134 in 1998. Kiymaz also argues that divestitures are the outcomes of a firm’s interest to create and pr eserve its shareholder wealth and it does not always symbolize the failure of a firm. A divestiture effectively refreshes a business organization and it assists the firm to enter the next phase of growth. The ultimate objective of every business firm is its further expansion and thereby increased profitability. A running business may have thorough knowledge regarding its key areas of strengths and weaknesses. Hence, an organization normally intends to restructure its strategies and concepts in order to address its weaker business areas and thereby focus more on potential growth sectors. In the opinion of Kiymaz (2006), spin offs and sell offs are the two effective techniques for a successful divestiture. Under the spin off methods, a company distributes all the common stocks to its existing shareholders with intent to create a separate publicly traded company. The author asserts that the divested asset is sold to another firm according to the concept of sell off. A spin off does not release its assets out of the company boundaries; instead, it retains within the hands of its shareholders. In contrast, a sell off constitutes complete remolding of the organizational structure and it includes an absolute disposal of some of its assets. However, retirement of succession planning is one of the major elements that influence a firm to adopt the techniques of divestitures. Rationalizing the number of shareholders is another motive behind divestiture strategies. Obviously, every shareholder of a firm would not be able to raise additional funds in times of contingencies. Moreover, every firm likes to retain potential shareholders because only they can contribute to the expansion of the company. The concept of divestiture enables the company to explore its potential shareholders. Colak and Whited (n.d.) claim that conglomerate invest efficiency play a vital role in determining the degree of growth of conglomerates. The authors add that a divestiture can effectively add t o the improvement of conglomerate investment efficiency. Therefore, dismantling conglomerates becomes a strong motive behind a divestiture. Similarly, a firm may have earned number of business entities by the way of acquisitions. It is often seen that the acquisition strategies adopted by firms become incorrect and thereby such firms are compelled to discard their acquisitions. Under such