International Trade Law
In-class Group Assignment - Week 3
Submitted by: Group 9
1. Somya Iyer – 201901329
2. Nazar Khan – 201902475
3. Aarti Shah – 201900633
4. Rajvi Chatwani – 201900929
Submitted to: Mr. Tony Bejjani
1. List the important clauses that should be included in international trade agreements.
Any contract has the function of creating an agreement which protects the interests of those
concerned. The manner in which foreign trade contracts are written is much more complicated
than the ones required for domestic dealings. An international agreement must include basic
details like the legal names of the parties, describe in detail the goods or services being sold, the
currency to be used for settlement, whether price is fixed or adjustable, payment due date,
method of payment, interest charges for late payment, who is responsible for costs of carriage,
insurance, packing, documentation, etc, compensation provided to the other party, what
warranties apply, dispute settlement mechanism, etc. In addition to all this information, the
important clauses that should be included in international trade agreements are as follows:
Liability clause:
There are different types of liability clauses in an international trade agreement. The liability
restriction clauses either restrict the amount of harm that can be outstanding even if the damage
inflicted by the contractor exceeds the specified cap, or limits the terms and conditions for a
contractual liability action. The clauses on the exclusion of liability suppress any liability on the
part of the debtor in the event of failure to perform or improper performance of its means or
results. The exclusion and restriction clauses are similar to force majeure clauses in their purpose
of excluding part or all of the debtor's responsibility in the event of a default under the signed
foreign trade agreement. The liability aggravation clauses are those whereby the debtor
undertakes contractual provisions through which the debtor undertakes certain additional
obligations beyond those provided by law for the international trade agreement concluded. The
debtor also undertakes contractual liability in cases expressly mentioned whereby the provisions
of law applicable to the international trade agreements would be exempted from liability.
Insurance clause:
Disruptive events may occur throughout the international trade agreements which would be
independent of any party's fault and it may affect the balance agreed upon on conclusion of the
agreement, causing the impossibility or substantially aggravating the fulfillment of obligations
for at least one of the parties. Currency or non-currency or commercial in nature: political risks
and natural disasters are some of the risks likely to affect international trade agreements in long-
term.
Adjustment clause:
With a view to maintaining medium and long-term trade relations, the negotiating parties appeal
to negotiate and stipulate provisions in international trade agreements that require the
arrangement to be modified and renegotiated in the event of adjustments in the contractual
balance and the circumstances taken into account by the parties at the time of signature.
Extension of contractual relations clause:
The parties are entitled to use exclusive or joint promissory arrangements, an option
arrangement, to prolong the contractual partnership, depending on whether they communicate
their arrangement on a first preference clause or a preferential agreement. These clauses unique
to medium or long-term contractual agreements between contracting parties are often referred to
as choice clauses because they grant the applicant the ability to choose whether or not to
conclude the international trade agreement 's expectations.
Default clause:
International trade participants with a broad market number, and not only, justify participation in
the production and use default clauses in international trade agreements. They are invariable
under a certain form of arrangement, which is regularly drawn up and contains elements
important to that arrangement, which are decided in advance. The default clauses in international
trade agreements have the same legal meaning as any contract which is negotiated explicitly and
openly by the parties. Exceptionally, the peculiar default clauses whose existence could not
possibly have been foreseen by the parties have no legal effect if they had not been specifically
accepted by the contracting parties.
2. Explain the significance of international treaties and conventions. Give one example to
support your answer.
International conventions are treaties between nations, or agreements. Often, "international
convention" is used interchangeably with terms such as "international treaty," "international
agreement," "compact" or "state contract."
International Treaties are the most common means of establishing international rules or standards
to which States and other actors of the international community are required to comply.
International treaties are sometimes referred to as conventions, agreements, covenants, 'laws,
memoranda of understanding, statutes, etc. The terminology varies but the substance is the same:
they all denote 'an amalgamation of the wills of two or more international subjects for the
purpose of regulating their interests by international rules. This definition indicates the
importance of treaty in establishing 'international rules' for regulating subject interests. The
importance of 'international treaty' in establishing international laws is significantly enhanced in
modern international law. In short, their value has been central in the following spectrum:
Establishment of foreign bodies or foreign regulatory mechanisms. One of the major
shortcomings found by international law's classical theorists is linked to the consistency of their
'compliance.' It has also been said that international law has failed to have an impact because of
its lack of 'compliance' mechanism. This issue has been addressed by the increasing significance
of international treaty making process.
Creating a treaty is an essential 'international law producing mode.' Since the process of making
a treaty calls for 'conscious debate and deliberation on topics to be discussed, it is claimed that
the terms of the treaty have 'most concrete rules' on such matters. Making international laws
through a treaty thus making the most desired 'how international laws are generated.'
Enlargement and institutionalisation of the 'universality' of human rights is one of the most
notable accomplishments of post-1945 international treaties.
While treaties establish responsibility for the parties, the moral perspective that they also provide
is enormous for the group of States and citizens. Accordingly, treaty enforcement is backed by
'legal and moral approval.' In contemporary international law the classical view that the treaty
only binds the parties to it is not necessarily valid. After 1945, the changed international order
outlook and the increasing interdependence of states created a positive environment for states to
'assume responsibilities created by treaties,' even though they are not parties.
For example, human rights are assessed by UN conventions and covenants. Daily State
assessments track the enforcement of the rights enshrined in these Treaties. Every nation's
analysis provides an opportunity to educate people and demand recognition of the rights
enshrined in the treaties their governments have ratified. One of the best examples is the
International Convention on the Protection of the Rights of All Migrant Workers and Family
Members (CRMW) which is a global political agreement to ensure dignity and equality in an age
of globalisation. The Convention sets minimum requirements for migrant workers and their
family members, with a emphasis on reducing labour abuse in the migration process. The
monitoring period is an essential mechanism for ensuring that legal commitments under the core
human rights conventions are met. The process provides a unique opportunity to determine the
state of protection of human rights within one's own jurisdiction and to establish a national
strategy for effective policy making and enforcement of the rights recognised in the Convention.
References:
1. Sangroula, Yubaraj (January 2010), International Treaties: Features and Importance from
International Law Perspective
2. Joshua Cooper (June 2017), Cultural Survival Quarterly Magazine, Convention on the
protection of the rights of all migrant workers and their families.
3. Dörr, Oliver & Schmalenbach, Kirsten. (2012). Introduction: On the Role of Treaties in the
Development of International Law.
4. Ibergloabal – The ABCs of International Trade contracts
