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White City SK S4L 5B1
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Duration:
2 days onsight training by General Manager of training and education Gafta (London England) to be reserved in advance
Site location to be approved in advance, Canada
Course costs TBA with course site location/oordinator pre-registrations
Registrations minimum 20, maximum 40 in advance with VCMx Exchange Education Department
Agenda:
MODULES
1. Introduction to contracts
2. Fulfilling contractual obligations
3. Payment and risk
4. Charterparties and international carriage regimes
5. What to do in exceptional circumstances
6. Problems and how to resolve them
FORMATION OF CONTRACTUAL OBLIGATIONS
Day 1
09.00 Introduction to GAFTA Standard forms of International Contract, Negotiation and Contract Confirmation
10.00 Responsibility of Parties under standard forms of contracts and passing of risks CIF /FOB / Containers / Ex Store, DDU, etc
11.00 Break
THE GOODS
11.30 Quality and Condition, Warranties and Guarantees .
Instruction for Supervision Sampling Rules 124 Weighing Rules 123 Quality Assurance, GTAS
13.00 Lunch
14.00 Practical Exercise, Case Study – Terms of a Contract.
- 15.00 Shipping Documents
- Bills of Lading Mates Receipts Invoices
16.00 Break
- 16.30 Ascertaining the Goods/Vessel
- Nomination of Vessel Appropriation of Goods
17.30 End
Day 2
08.30 Insuring the Goods
Principle of Insurance Gafta Insurance Rules no. 72
09.15 Payment Terms
Prepayment Open Account Cash Against Documents Letters of Credit
10.00 Case Study – Payment Terms and Insurance – Preparation Coffee
10.45 Discussion – Payment Terms and Insurance
FREIGHT, LOADING AND DISCHARGE RISKS
11.15 Introduction to Charterparties, Laytime, Despatch and Demurrage
12.15 Exercise –Laytime Calculation
12.45 Exercise – Review of Laytime Calculation
13.00 Lunch
PROBLEMS AND EXCEPTIONAL CIRCUMSTANCES
14.00 Prevention of Shipment clauses and Frustration
14.45 Breaches, Default and Damages, Claiming Default and the Duty to Mitigate
15.45 Case Study – Default and Damages , Coffee
16.45 Arbitration and Mediation
17.30 End
Cost:
Target Audience:
Gafta is an international Trade Association with over 1400 Members in 86 countries. Gafta promotes international trade in agricultural commodities - and to protect the interests of members worldwide, providing the support and international contacts they require.
VCMx Exchange Inc is an international cash physical products and services exchange with associated governance council coordinating and faciltating trade in exchange verified products, logistics and related professional trade services for its members
Membership categories reflect the different aspects of the international and domestic grain trade trade and include :
Principle Traders (Buyers and Sellers ), Logistics Asset Owners, Grain Brokers, Logistics Brokers, and Professional Service Providers (graders, laboratories, crop agronomists, foreign exchange services, banking,legal, insurance, accounting)
Recognition Provided:
Other
Certificate of completion Gafta (Grain and Feed Trade Association)
Membership credits VCMx Exchange Inc
Method of Instruction:
On-site/On-farm
Workshops
On site classroom training Canadian course locations delivered by Head of Training and Education Gafta, London England
Case study participant exercises
Interactive on site training materials
Q&A with course instructor Gafta
Availability of Program:
Minimum 20 registrants per seasonal booking in advance VCMx Exchange
Contact:
Gerry Horne
Vice President
Educational Services
Agriculture Business:
Subject of Training:
Learning Outcomes
Introduction to Gafta standard forms of contracts,negotiation of trades and contract information
At the end of the on sight training session, participants should understand the elements necessary for the formation of a contract, and best practice when communicating terms with a counterparty, to understanding the many different types of standard terms and the importance of reading all contracts before agreeing to a contract.
Responsibility of parties under standard forms of contracts and the passing of risks
At the end of the on sight training session, participants should understand what and when parties are obliged to do under standard terms, such as cost insurance freight and free on board, container terms, FAS, Ex Store, Delivered, DDU etc.. Participants should gain knowledge of the difference between risk and property in the goods.
Quality, conditions, warranties and guarantees
The differences between the quality and the condition of the goods should be explained to on sight training participants and the potential different impact on various contractual obligations. Time should be spent on understanding the different types of contract terms, guarantees (or conditions) as opposed to warranties of the contract.
Quality assurance schemes
Food and feed safety is an issue of constant importance to the trade, understanding the need to use hazard and critical control point (HACCP) systems to encourage the safe production, transportation processing and final consumption of the goods will be explained as well as the benefits of the GTAS (Gafta Trade Assurance Scheme).
Instructing superintendents, understanding the sampling and weighing rules
Superintendents represent the contracting parties during loading and discharging operations. Participants at the end of the session should understand the importance of providing clear instructions and identifying key contract terms when instructing superintendents, as well as understanding their duties and identifying which rules should be followed.
Ascertainment of the goods and or the vessel
In bulk trading the ascertainment (or appropriation) of the goods is a vital step in the contractual process – risk may pass between the parties at this stage - so the requirements of appropriation are identified and simple issues raised. When trading under certain terms, sellers cannot load the goods until buyers have identified the vessel (and placed it in port /berth) so the requirements of a good nomination of vessel should also be explained with some simple steps to avoiding common issues.
Identifying and understanding the uses of various shipping documents including bills of lading, mates receipts, invoices and certificates
Under international shipment contracts, goods are often bought or sold without the parties ever seeing them, with parties making payment, taking on the responsibilities of title, and the risk of shipment against the provision of appropriate documents. Key documents are explained here – their importance, best practice when handling them and discussions as to which documents should be included in contractual terms.
Insurance
Transporting goods over large distances presents a risk of loss either by damage during transportation, loss of transportation and contents. The principles of insurance are introduced along with a greater examination of the Gafta Insurance Rules No. 72.
Payment terms
Paying for goods is a critical contractual term. Sellers wish to be paid for the goods before losing control of the property, and buyers wish to gain control of the goods before making payment. Various options exist and participants will have the principles of cash against documents, open account and letter of credit terms discussed.
Introduction to charterparties
Depending on the contract terms, one party is always responsible for arranging shipment. In bulk goods this often involves chartering (hiring) a vessel either for the duration of a voyage or for a specific time. The principles behind both time and voyage charters should be explained.
Simple introduction to laytime, despatch and demurrage including how to calculate
Laytime is the time allowed for goods to be loaded/unloaded without a party paying damages (demurrage) to the shipowner, calculations of “time allowed” is a vital aspect and this session should identify best ways to do this and explain common terms.
Prevention of shipment and frustration
Occasionally there may be unusual events which prevent the contract from being fulfilled. Participants should understand the very limited circumstances when a party may terminate the contract due to exceptional circumstances and what steps that should be taken with regards to notices etc.
Breaches of contract, default and damages
Participants should learn what to do in the event that another party fails to fulfil their contractual obligations. A thorough examination of the Gafta Default Clause will be undertaken, as well as identifying the duty of each party should such a circumstance arise.
Arbitration and Mediation
Participants should understand the principles behind arbitration, in addition to the key duties of a party under the Gafta Arbitration Rules nos. 125 and 126. Participants should understand the principles behind mediation, in addition to the key duties of a party under the Gafta Mediation Rules no. 128.
Language of Instruction:
For program information contact:
Last Updated: 2014-11-10
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