Case Study Of BigMi in New York Samples †MyAssignmenthelp.com

Question: Discuss about the Case Study Of BigMi in New York. Answer: Facts of the case In this given case study it has been provided that the branch of BigMi in New York Entered into an agreement by a legal representative. The contract entered into involved purchase of smartphones from a company based in California. The contract clearly mentioned that the buyer will be obligated to issue a letter of credit to the seller as soon as the seller chartered the ship. The seller duly chartered the ship however; Big Mi did not issue the letter of credit as it had found a cheaper source of the components it required. Thus, consequentially the seller had to sell the goods to another buyer at a cheaper rate and suffered losses. Thus it is to be analysed whether there was breach of contractual duty on the part of BigMi and whether the seller is entitled to claim damages. United Nations Convention on Contracts for the International Sale of Goods According to article 14 of the UNCISG it can be said that a proposal for concluding a contract addressed to one or more parties can be defined as an offer. Such proposal can be considered to definite and valid if it contains the specific description of the goods or services to be exchanged and the consideration amount. According to article 15 an offer is considered to be effective upon reaching the offeree. According to 16 an offer can be revoked by the offeror prior to the dispatch of the news of acceptance by the offeree. It cannot be revoked if it is particularly mentioned that the offer is irrevocable or if a specified time period of acceptance is mentioned. According to article 18 it can be stated that the conduct of the offeree indicating an assent to the offer will constitute acceptance. According to article 21 it can be said that a late response is also considered to be valid acceptance. Article 25 of the aforementioned convention deals with breach of a contract. In accordance with the aforementioned section it can be said that a contract is said to be breached by either of the parties if such action causes subsequent detriment to the other party. A breach of contract is expected to deprive one of the parties of his expectations from the contract. A contract is said to be breached if such breaching action was reasonably foreseeable to the breaching party. According article 26 it can be said that it can be said that a contract can be avoided lawfully if a notice of the avoidance is provided to the other party. In accordance with article 54, it can be stated that once a contract involving sale of goods has been successfully entered into by both the parties and when the seller has fulfilled his responsibilities as determined by the contract the buyer is entitled to pay the price as determined by the contract. According to article 62 it can be said that the seller may require the buyer to pay the price for the goods. The seller may also declare the contract to be avoided in accordance with section 64 of the aforementioned convention. In case of a breach of contract of sale of goods by the buyer the seller can calim damages . According to section 74 it can be said that in the event of breach of a contract, the aggrieved party has the right to claim damages equal to the loss of profit suffered by him due to the breach of the contract. Case analysis Thus by analysing the facts of the case and applying the legal provisions of the aforementioned convention it can be said that Big Mi proposed an offer to the seller, which involved purchase of components of smart phone in accordance with section 14 of the aforementioned convention. The California based seller had accepted the offer in accordance with the provision 18 of the convention. The contract specifically stated that the Buyer was required to issue letter of credit once the goods were chartered on the ship by the seller. Seller fulfilled his duties and chartered the goods, however the buyer refused to issue the letter of credit as it had found a cheaper source of obtaining the goods. Thus this constituted the breach of contract terms and the same can be validated in accordance with section 25 of the aforementioned convention. The seller had sustained losses as it had to sell the goods to another buyer at a much lesser rate. The buyer could have intimated the seller about the revocation of the offer in accordance with section 16. However it did not do so. Thus in this case the seller is entitled to claim damages from the buyer for the loss of profit in accordance with section 74. References: United Nations Convention on Contracts for the International Sale of Goods