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

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;

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;

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

International Actors 1 Public & private Public & private Intergovernmental IGO & nongovernmental NGO; Intergovernmental IGO & nongovernmental NGO; Intergovernmental IGOs: general → permanent, to carry on activities of common interest of member states; 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;) 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); cconsultative associations → to coordinate the economic policies, & interests; to exchange statistics; ( G-77, OECD, OPEC);

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

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

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

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

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

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