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Sensitive calibration equipment from fab electronics

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Reference no: EM133530978

Bagus Equipment Sdn Bhd agreed to buy 100,000 sensitive calibration equipment from FAB Electronics (China). The sale was by way of a CIF contract (Port Klang). The contract expressly states that Malaysian law will apply. Against the seller's stipulation, the carrier stored the goods above deck. Consequently, half of the goods were discovered to be damaged upon arrival at Port Klang. During transit, Bagus had entered into a contract with Nutron Electrics for the sale of 40,000 units of the goods. Now that Bagus found the half of the goods to be damaged, it refused to pay FAB. However, Bagus delivered the (undamaged) 40,000 units to Nutron Electrics.

1. Advise FAB of its rights against Bagus.

2. What is the law of the contract?

3. When will the risk pass to the buyer?

4. What is the significance of Bagus's sale of 40,000 units of the goods to Nutron Electrics?

Reference no: EM133530978

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