Assignment:
Phillips contracted to buy naphtha from Tradax for shipment from Algeria to Puerto Rico on C&F terms. Shipment was to be made between September 20 and September 28, 1981. The agreement incorporated the ICC Incoterms. It also contained a force majeure clause that stated, “In the event of any delay in shipment or delivery of the goods by the seller, the unaffected party may cancel the unfulfilled balance of the contract.” On September 16, Tradax shipped on the Oxy Trader. While en route, the Oxy Trader was detained by maritime authorities at Gibraltar, deemed unsafe, and not allowed to proceed. Tradax informed Phillips, which telexed back on October 1 that October 15 was the last acceptable delivery date. On October 7, its cargo had to be offloaded in Portugal for shipment on another vessel. On October 13, Phillips refused payment of the documents due to the delay. In November, the cargo was sold by Tradax to a third party at a loss. Phillips brought this action in the United States. Tradax claimed that it had ceased to bear responsibility for the goods when it transferred the goods to the carrier for shipment. Phillips maintained that it was excused from performance because the ship’s delay constituted force majeure. Judgment for whom, and why? Phillips Puerto Rico Core, Inc. v. Tradax Petroleum Ltd., 782 F.2d 314 (2d Cir. 1985). 5. Design Inc., in Newport, Rhode Island, entered into a contract with Buenavista, S.A. in Barcelona, Spain, to buy 1,000 sheets of stained glass. The contract contained a delivery clause that read “FOB Hasta Luego.” The contract also stated that it was to be interpreted in accordance with Incoterms. While the glass was being loaded onto the ship (Hasta Luego), one of the crates slipped from the loading mechanism and landed in the water before it crossed the ship’s rail. Who bears the risk of loss of the glass? Would the answer change if the contract was governed by the UCC?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.