Flashcards
Intro MCC
Flashcards do conjunto (57)
- 1What is a contract?Agreement enforceable by law is a contract
- 2What is an Agreement?Offer + Acceptance = Agreement
- 3What are the three types of laws that govern us?Economic / fiscal laws : comply
Social / Marital laws : behave
Commercial / Contract laws : Honor your committment - 4What are 3 common errors in Commercial contracts?Error of comprehension
Error of Misreading
Error in Haste - 5What is error in haste?due to the issue of "Get the order first"
Example : "Design, Drawing, Supply,Supervision of installation and commissioning" - 6What is error of misreading?need to find
- 7What is error of comprehension?need to find
- 8What is the resolution mechanism to address contract disputes?Arbitration
- 9When can Arbitration be appealed?-Arbitrator did a mistake
-There is a mistake of Law - 10What is the function of Contract?-What is not permitted
- Gap Filler - 11When can you not have contracts?You cannot enter into a contract
- for unlawful purpose
-for public policy
- Impossible things - 12How does Indian Contract Act 1872 , Sec 1 define contracts?Nothing herein shall affect the provisions of any statute ;
Nor any usage nor custom of trade nor any incident of any contract not inconsistent with provisions of this act; - 13What is custom of Trade?Hammer hitting table 3 times in auction
- 14What are the steps in a Contract?Invitation to offer - tender
Offer - Reply to Tender
Counter offer - Negotiation
Acceptance - After negotiation - 15Is this an Agreement ? / Is this an Contract?Is there an Offer?
Is there an unconditional acceptance?
Is there consideration ? - 16Quantifiable consideration : 3 exceptionsFirst : promise to relative
Second : Promise to compensate for past deed
Third : Limitation act (If there is an issue, how soon you need to act?) - 17What is "Time-barred" in contract?3 years from due date of payment
or
3 years from date the amount is acknowledged as "Due"
(whichever is later) - 18What does indicative amount mean in a contract?2010 10 lakhs
2011 4.5 lakhs
2012 14.5 lakhs
2013 10 lakhs
2014 14.5 lakhs
if amount itself is indicative, it should be adjusted against a particular year - 19How can you handle an indicative amount payment (for a particular year) when there is an amount due for a previous year?"irrespective of indicative amount, company has right to adjust amount for any debt"
- 20Does consideration need to be adequate?Consideration need not be adequate; for example in case of a tender, if a bidder erroneously (cut & paste) quoted a lower amount & got the contract allotted , he cannot claim that Consideration is inadequate
- 21When can a claim be made for adequate consideration?only when there can be an evidence for undue influence/threat / coercison
- 22What is definition of a contract in layman's terms?statement of risks and how you want to mitigate it
- 23How do you define the terms of a contract as buyer/seller?make a risk perception chart
define how to mitigate the risks - 24What are the typical risks in commercial contract?Payment
Quality
Legality
Title (ownership)
Exchange rate
Confidentiality : IPR/Patents/Copyright - 25Explain how to handle exchange rate fluctuations in a contractuse option contract : get exchange rate for future date from RBI by paying a premium;
Exchange rate is not "Force Majeure" - 26What are goods?Goods mean movables other than money & actionable clauses
- 27What are actionable clauses?documents which give you right to acquire money, cheque ) : ex., promissory note
- 28Movable / immovable: Coconut tree :__________ Coconut : ___________t
- 29Newspapernewspaper is goods;
not goods under sales tax laws - 30softwaresoftware is movable under sales tax law
not Goods under patent law - 31what are the basic entities of Commerce?Goods
Non-Goods
Services - 32What is the primary risk in commercial contract dealing with Goods?Item itself
- 33How do you address the risk associated with item definition?Harmonized system of Nomenclature (HSN)
devised by World Custom Organization
ex., 8471 for computing devices - 34what is the system for HSN in India?ITC HS
Indian trade classification - 35What is the HSN used for?1) taxation purposes
2) define licence policy of import
3) define EXIM policy
4) Tariff/Non-Tariff barrier - 36How is HSN used for taxation?-helps govt. decide how to tax the goods
Import
Excise
Sales - 37How is HSN used to define the policy of import?FRCP
Free licence - No license required to import; ex., computers; free licence does not mean zero duty
Restricted - import of bazooka
Canelized - import of uranium ; AEC does it for you
prohibited - Import of foreign soaps that use pig fat
for small quantities , FRC rules do not apply ; only baggage rules apply - 38How is HSN used in policy making?Govt of India uses it to define its 5 year policy;
upper and lower bound for basic custom duty (BCD)
some products like cigarettes do not have any bounds - 39what are other duties beyond BCD?ADC - additional duty of customs
SAD - special additional duty
Cess - 40How is HSN used to define Tariff/ Non-tariff barrierTariff barrier : add taxes to the imported goods to increase their total cost
non-tariff barrier : cannot bring-in food to NewZealand
India has created NTF for imports : customs, excise, sales and stamping happen separately making it difficult to import
(that's why people work with agents to clear imports) - 41what are the different organizations that govern commerce?WTO - Geneva
ICC - Paris - International chamber of commerce
WCO- Brussels -World Customs Organization
Others - UNCITRAL - United Nations Commission on International Trade law - 42What is UNCITRAL?Legal body with universal membership specializing in commercial law reforms; role is in
modernization and harmonization of rules on International business - 43Possession , Riskyou pick a bread in the store ; you have taken the possession; you carry the risk;
you own it once the billing occurred; - 44How can you reduce risk?by Insurance;
- 45Who can be the insurer?somebody who is the owner
going to be owner
somebody having interest in the goods (warehouse owner) - 46On ownershipOwnership is transferred when it is intended to be transferred;
-Terms of Contract
-Circumstances of Case (you own idly when it is placed in front of you)
-Conduct of parties
Retailer is an owner; he owns the product not the brand
Distributor is not an owner; distributor contracts are agency contracts;
Retailer contracts are buyer-seller contracts - 47How does ownership transfer occurs?physical possession :
symbolic : get the rc book for vehicle
Title transfer : - 48what is uberimafidemoment the possession is transferred, other party owns the risk
- 49what is bill of lading?given by shipper to goods owner;
Seller to transfer bill of lading to buyer after getting money;
buyer goes to shipper ;submits bill of lading to get goods
one who owns the Bill of lading is the owner - 50what are the equivalent of bill of lading for other forms of transportlorry receipt LR
railway receipt RR
Warehouse Warranty WW - 51What is a negotiable document?Documents that give you title to goods;
BL,RR,LR,WW are all negotiable documents - 52What is negotiable instrument?Documents that give you title to Money
- 53Why is airway bill "non-negotiable"Airwaybill is not a document of title because goods shipped under AWB can be released thru Identification of the Consignee (presentation of ID) and not by presentation of Original AWB;
in simplest terms, airway bill is just a contract between shipper and carrier to carry the freight;
Accordingly, the airwaybill need not be produced by the consignee to obtain release or possession of the underlying goods; once consigned to party “X”, only party “X” can claim possession. By using a ‘waybill’ of any description, the shipper is signaling to the carrier to release to the named consignee on proof they are the named consignee i.e. they do not need proof of entitlement to possess, just proof of who they are. - 54you buy an item in flipkart; by COD by Online payment what are implications on ownership?when you buy thru COD you become owner on receive the delivery
when you pay online, you become owner when you paid online - 55What is a delivery term?The terms of delivery used for transport to define the delivery obligations between the seller and the buyer and the division of costs and risks in the course of transportation.
Delivery term indicates when the possession is passed and by which the risk is passed ;
Internationally , it is defined under International Commercial Terms (INCO terms) - 56what is the difference between buying a phone thru e-bay (Taiwan) and buying phone thru Flipkart (india) in terms of the possession and ownership?when you buy from ebay - Taiwan , buyer is the owner and possessor; if something happened to the phone, buyer carries the risk
when you buy from flipkart - owner is the buyer; flipkart has the possession until delivery; so flipkart carries the risk - 57Is it mandatory to have INCO terms in International trade?No. INCO terms are guidelines;
It is recommended however to use INCO terms to deal with potential issues of disputes;
Informações
- Descrição
- ICFES/Saber 11 manage commercial contracts FlashCards sobre Intro MCC, criado por Mukundhan Srinivasan em 26-03-2016.
- Criado por
- Mukundhan Srinivasan
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