Natural Gas Case Study

In: Business and Management

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Natural Gas Case Study
University of Phoenix

Natural Gas Case Study
The convention on Contracts for the International Sale of Goods (hereafter CISG) was an agreement to reduce the hassle of international trade and provide a universal way to handle disputes. The benefit of international trade was unmistakable to companies across the globe; however, the complications associated with the different laws and regulations of each sovereign nation often discouraged companies from partaking in this fruitful venture. Thus, the CISG helped companies minimize the risks of international trade, by providing a uniformed code that could be applied to all international transactions. In the natural gas case, the plaintiff a German company agreed to purchase propane from the defendant, an Austrian partnership. The fact the contract was never fulfilled properly led to the German company bring forth a breach of contract lawsuit, the courts applied the CISG to determine their findings.
The natural gas case, as previously stated, was between a German buyer and an Austrian seller. The buyer or plaintiff agreed to purchase propane from the seller. The seller was to have the propane shipped from its supplier in the United States to Belgium where the buyer would receive it. Due to the fact that the two parties had never done business before, the seller required the buyer to secure a letter of credit for the transaction. However, the buyer’s bank required details about the transactions, specifically the location in the United States where the propane would be loaded and shipped from. The buyer made a few unsuccessful attempts to reach the seller for the required information and was eventually notified by the seller that the propane could not be shipped from the United States to Belgium. The buyer was then unable to deliver any propane to their client, a Dutch reseller, who then had to…...

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