Formation/ Performance of contracts for sale of good & the documentary sale/terms of trade.

Paper details: Assignment – Here are the questions:

Provide your thoughts on the following.

1 – Lucent Technologies International, Inc., subcontracted with a Saudi Arabian company, National Group, for work that Lucent was doing as part of a $4 billion telecommunications project for the Saudi government. National Group sued Lucent for damages for terminating the con- tract. The damages included an amount for lost profits. The contract contained no choice of law provision and Saudi law applied. The U.S. court had to decide if recovery of lost profits was prohibited as gharar. After all, gha-rar prohibits gambling, or the sale of the “calf while still in the womb” or of “fish in the sea.” What is gharar, and how does this Islamic law principle affect the calculation of damages for breach of contract under Islamic law? Would this decision have been different under the CISG? National Group for Communications and Computers, Ltd. v. Lucent Technologies International, Inc., 331 F. Supp. 2d 290 (D.N.J.2004).

Provide your thoughts on the following questions:

2. Assume that the documents arrive well ahead of the ocean cargo and that they are purchased by the buyer. A day later, the ship and cargo go down at sea. Assuming that the carrier was not at fault, what is the buyer’s recourse?

3. In a CIF contract, which party assumes the risk of changes in the cost of ocean freight after the signiaqwng of the contract but before shipment?

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