Assignment task:
Mr. Kgosi represents Light Solutions 1246/1993 (Pty) Ltd, of which he is the sole director and shareholder. Although the company was formed and registered in the People's Republic of China, it is registered as an external company in South Africa and its primary place of business is registered at the Companies and Intellectual Property Commission as 251 Lunnon Road, Hatfield, Pretoria. Mr. Kgosi sold 100 000 solar panels 'CIF Durban' to Mr. Ramasa. The contract was concluded in England during a conference. The contract contains a clause that the solar panels must be SABS compliant. Mr. Kgosi arranged for 100 000 identical and unmarked solar panels to be transported on a truck from his business premises in Dubai to the Dubai harbour. On arrival of the truck at the Dubai harbour, 100 000 solar panels were offloaded and delivered to the control of the international carrier for shipment to Durban. At the time of shipment, the 100 000 solar panels were not yet certified as SABS approved. By the time the consignment of solar panels reached Durban, they were declared nonSABS compliant. This was due to no fault on the part of either the seller or buyer or any of their agents. The contract, which was reduced to writing by an Australian law firm, does not contain an express choice of law clause. However, it includes an arbitration clause which determines that, should a dispute arise, arbitration will take place in Sydney
1. Advise Mr. Ramasa whether he is liable to pay the purchase price for the 100 000 solar panels. Assume that the South African common-law principles on the passing of risk apply. Refer to relevant case law.
2. Assume that the CIF contract of sale between Kgosi and Ramasa had incorporated the Incoterms relating to the passing of risk. How would this impact on your advice to Ramasa? Give full reasons for your answer
3. Assume that the contract of sale between Kgosi and Ramasa had been a sale on DAP terms, and that the parties had adopted the relevant Incoterms relating to the passing of risk. Explain how this would impact on your advice to Ramasa, giving full reasons for your answer. In the course of your answer, explain the concept of an international contract of sale on DAP terms.