Trade Agreement Dispute Resolution
Summary
In a trade agreement dispute between Vercelli S.P.A. (Italy) and Inspiring Solutions Trading and Import Company (KSA), Inspiring Solutions failed to pay for goods ordered. Under Saudi Commercial Law, Article 125 states that a purchase order is an offer to buy, forming a contract upon acceptance. Article 126 outlines that an invoice summarizes the sale terms and serves as evidence in disputes.Full Conversation
To
gain a comprehensive understanding of the situation, it's essential to examine
the characteristics of both companies and the intricacies of the trade
agreement between Vercelli S.P.A. (Italy) and Inspiring Solutions Trading and
Import Company (KSA). Inspiring Solutions initiated the transaction by placing
an official purchase order for veal hamburgers, mini hamburgers, and sausage on
August *, *. Subsequently, Vercelli issued an invoice on September *, *.· Our
Legal issue in this case is:
The legal issue is a breach of Commercial Commitment due to Inspiring Solutions Trading and Import Company
(KSA) failing to pay for goods ordered from Vercelli S.P.A. (Italy).
· Our
Legal Rule in this case is:
The
Commercial Law of Saudi Arabia is a comprehensive law that covers a wide range
of commercial transactions.
§ Article *: of the Commercial law of the Kingdom of Saudi
Arabia states:
Offer to buy: A
purchase order is an offer to buy goods or services from a seller. The offer
must be clear, definite, and unconditional. Acceptance: If the seller accepts
the offer, a contract is formed. Acceptance can be expressed or implied.
§ Article *: of the Commercial law of the Kingdom of
Saudi Arabia states:
Summary of sale: An invoice is a document
that summarizes the terms of a sale. It should include the following
information:
Ø The
names of the buyer and seller
Ø The
date of the sale
Ø The
quantity and description of the goods or services
Ø The
price of the goods or services
Ø The
delivery date
Ø The
terms of payment
Evidence
of sale: An invoice is also evidence of the sale.
If there is a dispute between the buyer and seller, the invoice can be used as
evidence to prove the terms of the sale. make applicantion fact , legal issue and legal rule in detalis
Application of Facts, Legal Issue, and Legal Rule
**Facts:**
- Inspiring Solutions Trading and Import Company (KSA) placed an official purchase order for veal hamburgers, mini hamburgers, and sausage from Vercelli S.P.A. (Italy) on August *, *.
- Vercelli issued an invoice on September *, *.
- Inspiring Solutions has failed to pay for the goods ordered.
**Legal Issue:**
- Breach of Commercial Commitment: Inspiring Solutions Trading and Import Company (KSA) has not fulfilled its obligation to pay for the goods ordered from Vercelli S.P.A. (Italy).
**Legal Rule:**
- **Saudi Commercial Law:**
- **Article *:** A purchase order is an offer to buy goods or services, which must be clear, definite, and unconditional. Acceptance by the seller forms a contract, which can be either expressed or implied.
- **Article *:** An invoice summarizes the terms of a sale and serves as evidence in disputes. It should include:
- Names of buyer and seller
- Date of sale
- Quantity and description of goods or services
- Price
- Delivery date
**Facts:**
- Inspiring Solutions Trading and Import Company (KSA) placed an official purchase order for veal hamburgers, mini hamburgers, and sausage from Vercelli S.P.A. (Italy) on August *, *.
- Vercelli issued an invoice on September *, *.
- Inspiring Solutions has failed to pay for the goods ordered.
**Legal Issue:**
- Breach of Commercial Commitment: Inspiring Solutions Trading and Import Company (KSA) has not fulfilled its obligation to pay for the goods ordered from Vercelli S.P.A. (Italy).
**Legal Rule:**
- **Saudi Commercial Law:**
- **Article *:** A purchase order is an offer to buy goods or services, which must be clear, definite, and unconditional. Acceptance by the seller forms a contract, which can be either expressed or implied.
- **Article *:** An invoice summarizes the terms of a sale and serves as evidence in disputes. It should include:
- Names of buyer and seller
- Date of sale
- Quantity and description of goods or services
- Price
- Delivery date