Name: Prasanna Kumar Kandula
Student ID: 0835111
IBM220-24W-004 GLOBAL VALUE CHAIN
Prof: Ryan Dittus
Assignment of Contract for International Sale of Goods
1. Both Australia and Singapore are common law countries. Singatron and Semicontronics
conclude their first round of negotiations with a Letter of Intent (LOI). If the deal falls through,
will either party be bound to its commitments as detailed in the LOI? What can the parties do to
limit the obligations to the terms of the LOI?
The Australia and Singapore both use common law. In places that follow common law, a Letter of
Intent (LOI) is usually seen as not making both parties do what it says, unless they say otherwise very
clearly. If the deal doesn't happen, neither side has to do what they said in the LOI. To make sure they
only have to do what's in the LOI, the parties can say in the LOI that it's not making them do anything
and explain when they can end it without any problems.
2. List ten areas of consideration Semicontronics should include in its contract to have
Singatron manufacture computer chips.
Things Semicontronics should think about when making a contract with Singatron to make computer
chips:
Quality standards and specifications.
Pricing and payment terms.
Production quantities and delivery schedules.
Intellectual property rights and ownership.
Confidentiality and non-disclosure agreements.
Dispute resolution mechanisms.
Force majeure clauses for unforeseen events.
Terms for termination and exit strategies.
Compliance with legal and regulatory requirements.
Insurance and liability provisions.
3. Semicontronics’ manufacturing plant in Brazil is not suitable to fulfill the Phoneson contract
for computer chips, so a new contract must be arranged for the transportation of computer
chips from Singapore to Phoneson’s assembly plant in Japan.
For getting the computer chips from Singapore to Phoneson's assembly plant in Japan, Semicontronics
should talk about a different contract for transportation. Important things to think about in this
contract are:
Shipping methods and logistics.
Delivery timelines and schedules.
Packaging and handling requirements.
Insurance coverage during transit.
Customs and import/export compliance.
Responsibilities for damages or losses during transportation.
Terms of payment for transportation services.
4. What are some IP areas that can be at risk for infringement for Phoneson and Singatron if
not properly mitigated?
Name: Prasanna Kumar Kandula
Student ID: 0835111
Intellectual Property (IP) Risks:
Because of the way the electronics manufacturing industry works, there are a few areas where
intellectual property can be in danger of being used without permission. Phoneson and Singatron need
to do things to lower these risks, such as:
Patents: Make sure all the important technologies are officially protected to avoid others using them
without permission.
Trademarks: Keep brand names, logos, and other symbols safe to prevent confusion in the market.
Trade Secrets: Use strong methods to keep secret information safe.
Copyrights: Protect software, firmware, and other creative works from being used without
permission.
Licensing Agreements: Clearly say what's allowed and not allowed in agreements to use intellectual
property.
Dispute Resolution: Put ways in the contract to quickly and fairly solve problems related to
intellectual property..
