CPT is an Incoterms term under which the seller undertakes to organise and pay for the transportation of the goods to a destination agreed with the buyer. However, the risk of loss or damage to the goods transfers to the buyer at the moment the goods are handed over to the first carrier. The term frequently appears in international contracts as “carriage paid to Incoterms” or “CPT Incoterms 2020” and stands for Carriage Paid To.…
Grain quality is a key factor that determines the success of grain exports. It directly affects the price, global market demand, and compliance with international contract requirements. To ensure objective assessment and fair pricing, the global grain industry follows clear standards that classify wheat and other crops. At the core of this system are the Gafta (Grain and Feed Trade Association) rules, which apply to most international contracts. Quality Indicators That Determine Wheat Grain Class…
Instalment deliveries are used in Gafta and FOSFA contracts to provide flexibility in logistics and risk management. However, misunderstandings regarding the terms of instalment deliveries can lead to financial losses and lengthy arbitration disputes. I am a co-author of a Gafta course on instalment deliveries, and in this article, I will outline the fundamentals that help determine when instalment deliveries are permitted and when they may lead to contract termination and claims for damages. In…
In this article, we will consider what a default judgment is, when it is available under English law, the process of setting aside a default judgment, the difference between a default judgment and a summary judgment, and the consequences that follow after such a judgment is issued. What is a Default Judgment? A default judgment is a binding court decision made in favour of the claimant when the defendant fails to respond to a claim…
On 1 February 2025, Donald Trump announced the imposition of tariffs on imports from Canada, Mexico, and China. According to the White House statement, tariffs of 25% were imposed on goods from Canada and Mexico, while Chinese imports were subject to a 10% tariff. An exception was made for energy resources from Canada, which were subject to a 10% tariff. These measures were introduced under the International Emergency Economic Powers Act (IEEPA) and had a…
Ad hoc arbitration is a dispute resolution mechanism in which the parties organise the process themselves, including appointing arbitrators, defining rules, and establishing procedures. This approach does not involve the administration of a specialised arbitration institution. The Latin term ad hoc translates as “for this purpose” or “for this case,” emphasising the temporary and specific nature of this arbitration: the process is organised “from scratch” solely to resolve a particular dispute. What Does Ad Hoc…
A letter of credit is a secure payment method between a seller and a buyer, ensuring payment for the delivery of goods or services upon the presentation of relevant documents to the bank. In this introductory article, we will explore what a letter of credit is, how it works, its key features, differences from other financial instruments, and practical tips for its use. How a Letter of Credit Works In simple terms, a letter of…
In November, I spoke at a training course on commodity contracts in Cape Town, organised by Gafta. This course is part of the Gafta Professional Development (GPD) programme. For many professionals, successfully completing the course is an important step in their careers, especially if they aim to obtain the Gafta Trade Diploma and become Gafta arbitrators. This was the first Gafta training course held in South Africa. The seminar brought together traders, lawyers, and other…
A bill of lading is a document issued by the carrier or its agent to the shipper after the cargo is loaded onto the vessel for maritime transportation. It serves as proof that the carrier has undertaken the obligation to deliver the cargo to a specified port of destination and release it to the lawful consignee. The role of the bill of lading in maritime transportation is fundamental, as it performs several important functions. Three…
A performance bond is an unconditional guarantee provided by a bank to pay a specified amount to the beneficiary upon the first demand. This guarantee protects the beneficiary’s interests in cases where the seller, supplier, or another party fails to meet their contractual obligations. In international trade and construction projects, a performance bond is a key instrument to mitigate the risks associated with non-fulfilment of obligations. A performance bond is often used in contracts for…
