1. Read the following scenario and answer the question in 5-10 sentences. You ar
ID: 334062 • Letter: 1
Question
1. Read the following scenario and answer the question in 5-10 sentences. You are the buyer of a large quantity of ball bearings. You sign a contract drafted by the seller which states you will "pay $500,0oo for shipment for agreed goods arriving to New York next year on ship MV Liberty." Afterward you realize that "Liberty" is a common name in shipping and are concerned that a risk exists that you will be forced to pay for different goods that arrive on a ship with a similar name. Evaluate this risk and articulate ways that the contract could have been drafted to prevent a problem. D10000Explanation / Answer
There are multiple risks associated with the current language:
- The quantity of goods is uncertain and not defined, further said goods needs to be defined
- Quality of goods is uncertain, what if 50% of ball bearings are faulty
- The date of arrival of shipment is uncertain, it could be in January, February or any date of the year next year
- Time of arrival of the ship needs to be noted to avoid payment of goods arriving on another ship named Liberty
The contract could have been drafted the following way:
The buyer agrees to pay seller $500,000 for shipment for ball bearings (agreed goods) arriving to New York on 21st April 2019 (Next year) on ship MV Liberty arriving at 5:00 PM (time of arrival), given the quality of said goods meets the 90% quality (or say mutually discussed) standard.
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