The shipment comprises a 20 foot container of electronic products including processors chips and hard drives. ln Philippines currency the value of the consignment is P 4,4LO,898.
The purchaser is a Lesotho Company – Computer Business Solutions and the seller is a Philippines company – Aster (Philippines)
All questions are compulsory and carry equal marks. ln addition there are “bonus points” for grammar, written fluency and correct referencing.
1. Discuss the different forms of business structures in the Philippines? ln the case of companies what is the minimum number of directors and shareholders required? ls there any residency requirement for directors?
2. What steps should both parties take to protect themselves in respect of the transaction? ln other words what are the specific legal and luqinessrisks which both parties face in entering into the transaction?
Draft and attach as an appendix a “Heads of Agreement” between the two companies containing what you think are the key terms of sale and purchase. Assume you are acting for the purchaser so you should be drafting a document which primarily protects the purchaser. The task includes choice of law, force majeure, quality and dispute resolution clauses. Do not simply provide a document containing blank spaces you may have to make further assumption.
What are the possible realistic options for payment of the product? Which is best for the buyer? Which is best for the seller? What might be a better currency choice than the currencies of the Philippines and Lesotho and what is the reason for your choice? What are the advantages and disadvantages of letters of credit?