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International Trade Transactions

Explore the intricacies of managing risks in international trade, covering general and specific risks, sources of law, and key international actors. Learn about legal relationships and the principles of contracting in global commerce.

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International Trade Transactions

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  1. International Trade Transactions Dr. Katalin Csekő PhD 1-2 lectures

  2. Risks in International trade 1. The term of risk; The definition of risk exposure; Risk management of major importance as to the complex nature of international transactions; „General risks”: Political; Economic risks; Legal risks; Cultural risks;

  3. Risks in international trade 2. „Specific risks”: Transport-related risks; Acts of God; Market risks; Administrative risks; Non performance risks: Credit risks + Financial risks; Non-conformity risks;

  4. Sources of law in international trade • Treaties; • Conventions; • National laws → three legal families (Civil Codes;) • Supranational law → EU regulations • Lex mercatoria → Customary law, usages, model-contracts • Course of dealings • Course of performance; • Decisions of courts; • Opinion of counselors;

  5. International Actors 1 • Public & private • Intergovernmental IGO & nongovernmental NGO; Intergovernmental IGOs: • general→ permanent, to carry on activities of common interest of member states; • specific → permanent, to carry on activities of particular, mutual interests of members; (ICO, Interpol, customs unions, Free trade zones;) • cconsultative associations → to coordinate the economic policies, & interests; to exchange statistics; ( G-77, OECD, OPEC);

  6. International Actors 2. Nongovernmental NGOs: • Non-profit organizations: IATA, Bar Association; • For-profit organizations, made of multinational + national companies: ICC; Duty: • To serve as a coordinating agency for private interests groups in their international affairs; • To adopt international regulations; • To control international affairs; • To promote international dealings;

  7. Freedom of contracting 1. Limited, and must be controlled by fundamental principles such as: • Acting good faith; • Duty for fair dealing; • Considering the expectable interests of the other party; • Obligation to co-operate; • Obligation to mitigates the damages;

  8. Freedom of contracting 2. Generally prohibited: • Providing misleading information; • Showing recklessness in providing information; • Misuse of negotiating power ( coercion); • Committing fraud; • Forging documents and data; • Enforcing illegal clauses, • Unilaterally invalidating clauses;

  9. Freedom of contracting 3. Has been eroded due to: • Increasing power of associations and their model contracts; • General acceptance of Law Mercatoria; • Achievements of consumer law; • EU Regulations &Directives; ( Competition Law; CE-Statements; Product Liability;) • Transport Laws; • Directives of IGOs; (WTO:Customs value, certification of origin; OECD Export-crediting;) • Usages of NGOs; ( ICC Uniform rules for different kind of payments;)

  10. Net of legal relationships 1. • Buyer/importer/purchaser vs. Seller/Exporter • Principle vs. Agent, distributor, trading house, export management company; • Shipper vs. Carrier; • Principle vs. Freight forwarding company; • Proposer/contractor/assured vs. Underwriters/insurance company; • applicant vs. Credit institutionbank • Bailer vs. Warehouse;

  11. Net of legal relationship 2. • Licensor vs. Licensee; • Franchisor vs. Franchisee; • Principle vs. Issuer of certificates of different sorts; • Lesser vs. Lessee; • Leasing company vs. User/owner of future; • Principle vs. Arbitrators; • Creditor vs. Debtor; • Declarant vs. Customs authorities; • Applicant vs. Authorities; ( Ministry; )

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