Explore BrainMass
Share

Contracts - custom and trade usage

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

MT, already in the business of marketing agricultural products, decided to try its hand at marketing potatoes for processing. Nine months before the potato harvest, HMT contracted to supply Bell Brand with 100,000 sacks of potatoes. At harvest time, Bell Brand would only accept 60,000 sacks. HMT sues for breach of contract. Bell Brand argues that custom and usage in marketing processing potatoes allows buyers to give estimates in contracts, not fixed quantities, since the contracts are established so far in advance. HMT responds that the quantity term in the contract was definite and unambiguous.

Can custom and trade usage be used to interpret an unambiguous contract? Discuss.

© BrainMass Inc. brainmass.com October 24, 2018, 5:40 pm ad1c9bdddf
https://brainmass.com/law/contractlaw/contracts-custom-and-trade-usage-17449

Solution Preview

Problem: MT, already in the business of marketing agricultural products, decided to try its hand at marketing potatoes for processing. Nine months before the potato harvest, HMT contracted to supply Bell Brand with 100,000 sacks of potatoes. At harvest time, Bell Brand would only accept 60,000 sacks. HMT sues for breach of contract. Bell Brand argues that custom and usage in marketing ...

Solution Summary

Referring to the scenario, this solution discusses if custom and trade usage can be used to interpret an unambiguous contract.

$2.19
See Also This Related BrainMass Solution

International trade guidelines and information

In this module, you will research information related to international finance, documents, and logistics.

Without financial resources, your company will not be able to purchase goods and services. In your opinion, how does a company finance international transactions?

When dealing with foreign countries, financial transactions can be risky. Before your company ships goods to a company located in La Republica de Caspa, you need to ensure that the foreign country will pay your company for the goods. Similarly, if your company orders goods from a company located in Russavia, you need to ensure that your company will receive the products it ordered instead of boxes filled with rocks.

Research letter of credit transactions, the uniform customs and practice for documentary credits (UCP), sources of trade financing, and other topics related to finance. Interview someone involved in international finance at your company. Prepare a paper evaluating the various methods of financing and the risks of financial transactions when buying and selling goods and services to foreign countries.

In addition, research the documents involved in international transactions. Provide the names and purposes of the most important documents. Analyze the legal requirements for these documents. Relate the use of Incoterms to import and export contracts. Considering the audience of your practical guide, include copies of documents for reference in your guide.

The final part of this module's paper should address the transportation of goods. What laws govern the transportation of goods from one country to another? Analyze the roles and responsibilities of the buyer, seller, carrier and freight forwarder? Evaluate which party is liable in the event goods are damaged in transit. Interview someone from risk management at your company to obtain information related to insurance and risk management.

Also, analyze how finance, documents, and logistics are affected by culture, ethics, and e-commerce. Make note of any pending regulations or laws that could affect your company in the future.

Write a 2-4 page paper showing your research on finance, documentary requirements, and logistics. Include links, references, and sources you have used and follow the proper guidelines for citing legal texts. Also provide a statement regarding which specific topics related to your research would be appropriate for inclusion in the International Business Law and Practices Guidelines document you are developing. Provide a rationale for your decisions.

Present your work in Microsoft Word document format.

View Full Posting Details