International Sales Contracts Essay Example | Topics and Well Written Essays - 3500 words

International Sales Contracts - Essay Example Contract of sale is explicit and aid in deciding the issues, there are circumstances where the intention of the parties do matter apart from the legal terms forming part of the contract of sale. However as has been pointed out by Lord Wright in Ross T Smyth and Co Ltd Bailey, Son and Co1 the intention of the parties cannot be subjected to any proof; rather the intentions can be ascertained â€Å"from the terms of the contract, the conduct of the parties and the circumstances of the case.† This paper brings out the implications of the observations of Lord Wright about the intentions of the parties to a contract of sale with regard to the FOB and CIF contracts and also the improvements if any brought about by section 20A newly introduced by the Sale of Goods (Amendment) Act 1995 on the position of the CIF buyer of bulk goods. According to the basic principle in the law relating to the contract of sale, all the terms of the contract depends entirely on the intention of the parties to the contract. Though this situation is true in a number of cases this position is usually forgotten by the parties involved. However such intentions cover even the terms governing the time at which the title and risk pass to the buyer. Hence it can be stated that only under the circumstances where the intention of the parties is not clear or if the agreement between them is silent the law relating to the sale of goods provides the missing terms to conclude the contract or settle the dispute if any. This position of importance given to the intention of the parties in a contract of sale is recognized even by the common law statutes and the civil codes. Under the Sale of Goods Act 1979, the ‘intention of the parties’ has been referred to in a number of instances. Under section 10 the phrases â€Å"unless a different intention appears from the terms of the contract† are being used. Sections 17(1), 18 and 20 of the Sale of Goods Act 1979 also have used the intention of the parties.