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Duration:
VCMx Exchange Inc.
International Gafta Standard Form Contracts
Section 1 – Negotiation of a Trade.
Understand how a contract for the sale or purchase of commodities is made. Describe elements of formation of a contract.
Identify the importance of the formation of the agreement and how the negotiations will determine when the agreement is in fact formed.
Identify the distinction between the formation in substantive law of the contract and the evidential burden of actually proving that the contract is formed
Identify what issues need to be considered before making a contract for the sale or purchase of commodities.
Identify the types and importance of contract terms
Identify which terms need to be included in the contract with your counterparty. Identify how the terms of a contract may be amended
Understand best practice when confirming trades
Identify the importance of the domicile clause in Gafta standard contracts.
Identify the importance of the specific incorporation of certain standard contract clauses, insurance rules and arbitration and mediation agreements.
Describe the importance of privacy of contract under Gafta contracts.
Specific issues for Gafta contracts:
describe the main types of Gafta contracts and analyze the differences
describe the standard clauses used in Gafta contracts
Section 2 – Parties Responsibilities under different types of Gafta Standard Contract Terms
For CIF, CIFST, CIFFO, C&F, C&FFO, FOB, FAS, EX Store, DAF, and Delivered
Understand how to identify the respective parties’ duties under a contract and any duties precedent
Section 3 – The Goods
Students should have an awareness of:
The relevant sales of goods legislation in regard to bulk goods trading.
Understand and analyze the impact of implied terms on parties’ contractual obligations.
Understand the critical differences between a term deemed to be a “condition / guarantee” of the contract versus a term that is a warranty – explain the different impacts breaches of term may have to the contractual obligations of the parties.
Explain and identify terms which may fall in the “innominate” or “intermediate” type of term classifications – and identify the circumstances where breaches of such terms may be deemed to be a breach of warranty and on other occasions in alternative circumstances may be deemed to be a breach of condition.
Fulfilling quality and condition obligations
Students completing this section and should be able to:
Identify where description, quality, and condition terms are to be found in the contract and the impact on contractual obligations that each of these types of terms may have.
Discuss common quality and or condition specifications throughout the trade.
Explain and identify the underlying causes of loss or condition of the goods during shipment including who may be responsible and how to make claims against the “guilty” party.
Understand duties when sale by sample
Understand the meaning of certificate final and its impact on the contractual duties of the parties.
Understand how to instruct analysts when quality is as per analyst certificate at discharge and the relevance of the Gafta methods of analysis 130.
A Superintendents Role
Students completing this section and should be able to:
Explain best practice with regards to instructing superintendents including what information should be provided to enable the superintendent to be able to complete the role properly.
Understand a superintendent’s duties with regards to collecting / recording of evidence, the use of letters of protest.
Section 4 – to Appropriate the Goods or to Nominate the Vessel
Understand how to correctly appropriate goods
Vessel Nomination
Explain how to nominate a ship and identify what items must be included in a nomination.
Identify when a nomination must be made.
Explain whether a valid nomination can be withdrawn.
Section 4 – The Documents
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. Bills of Lading, Mates Receipts, Certificates, Invoices
Section 5 – Payment Terms and 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.
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 in detail.
Section 6 – Charter parties, Loading/Discharge Risks with regards to the trade contract
Introduction to charter parties
Students will understand the basic duties and responsibilities under the common charter parties used in the grain trade Trip Charter Voyage Charter Time Charter
In addition to understanding making bookings for Containers,simple introduction to lay time, despatch and demurrage including how to calculate it.
Lay time is the time allowed for goods to be loaded and or unloaded without a party paying damages (demurrage) to the ship-owner for taking too long.
Calculations of “time allowed” is a vital aspect and this section should identify best ways to do this and explain common terms.
Section 7 – Dealing with Problems and how to resolve them.
Occasionally there may be unusual events which prevent the contract from being fulfilled.
Gafta contracts provide in very limited circumstances some protection in such events, and 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. Force Majeure, Strikes Prohibition, Ice.
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: A private and confidential way of resolving disputes
Mediation: a form of alternative dispute resolution as a means for disagreeing parties to come to an agreement short of litigation
Agenda:
Self study aspect will take about 20-25 hours
3 question and answer sessions (45 minutes) – run via a chat room
3 scenario / case study sessions (45 minutes) – run either via a telephone tutorial or via Cisco web-ex
3 mandatory marked exercises
Target Audience:
Buyers/Sellers/ and International Trade Service Providers of Canadian field crops when conducting International Trade
Recognition Provided:
Certification on successful completion of VCMx/Gafta training program
Method of Instruction:
This Program is an ‘off campus’ program which you can access on line and study when it is convenient for you at home, at work or whilst travelling. Learning materials are delivered individually through the internet, enabling study at your own pace and convenience.
The Program aims to teach participants about contractual obligations when trading agricultural goods internationally under Gafta Standard contract terms and to provide an interactive, flexible learning opportunity for all participants of the irrespective of their location over a fixed period.
Each section will cover their respective subjects in detail and require students to develop and show their analytical skills throughout.
In addition to the self-study, students will be required to attend tutorial on a regular basis. These will be at fixed times and will be a mixture of question and answer sessions and scenario based case studies. Students will also be required to complete a number of written mandatory exercises to a satisfactory standard to complete this program.
With web based learning you choose the place at which you study.
Benefits of the program include:
. Learning at convenient times in any location. Flexible – preparatory study and work at a time most suitable to you.
. Plenty of learner support – [email protected] provides a response to queries. Regular tutorials are available throughout the course. Assignments – and certification on successful completion of the Program.
This Program is an ‘off campus’ program which you can access on line and study when it is convenient for you at home, at work or whilst travelling. Learning materials are delivered individually through the internet, enabling study at your own pace and convenience.
The Program aims to teach participants about contractual obligations when trading agricultural goods internationally under Gafta Standard contract terms and to provide an interactive, flexible learning opportunity for all participants of the irrespective of their location over a fixed period.
Each section will cover their respective subjects in detail and require students to develop and show their analytical skills throughout.
In addition to the self-study, students will be required to attend tutorial on a regular basis. These will be at fixed times and will be a mixture of question and answer sessions and scenario based case studies. Students will also be required to complete a number of written mandatory exercises to a satisfactory standard to complete this program.
With web based learning you choose the place at which you study.
Benefits of the program include:
. Learning at convenient times in any location. Flexible – preparatory study and work at a time most suitable to you.
. Plenty of learner support – [email protected] provides a response to queries.
Regular tutorials are available throughout the course. Assignments – and certification on successful completion of the Program.
Availability of Program:
Scheduled with VCMx Training Coordinator for online delivery
Contact
Education and Communications
VCMx Exchange
www.vcmx.ca
Agriculture Business:
Subject of Training:
Crop Production
Marketing (includes value added)
Other
This International Standard Gafta Contract training is an ‘off campus’ program which you can access on line and study when it is convenient for you at home, at work or while travelling. Learning materials are delivered individually through the internet, enabling study at your own pace and convenience.
The Program aims to teach participants about contractual obligations when trading agricultural goods internationally under Gafta Standard contract terms and to provide an interactive, flexible learning opportunity for all participants of the irrespective of their location over a fixed period.
Each section will cover their respective subjects in detail and require students to develop and show their analytical skills throughout.
In addition to the self-study, students will be required to attend tutorial on a regular basis. These will be at fixed times and will be a mixture of question and answer sessions and scenario based case studies. Students will also be required to complete a number of written mandatory exercises to a satisfactory standard to complete this program.
Language of Instruction:
For program information contact:
Last Updated: 2014-03-24
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