(a) List five documents used in foreign trade.
(b) Explain five conditions under which an agency may be terminated.
Explanation
(a) Documents used in foreign trade are:
(i) Shipping note.
(ii) Freight note
(iii) Bill of lading
(iv) Consular invoice
(v) Certificate of origin
(vi) Invoice
(vii) Dock warrant
(viii) letter of credit.
(b) An agency may be terminated under the following conditions:
(i) Subsequent impossibility: E.g. hall scheduled for a ceremony becomes burnt before the day.
(ii) By performance: If the contract is for a particular venture, at the completion of the venture.
(iii) By breach: If the agent or principal breaches the terms of the agency.
(iv) Death of principal or agent: Death of either of the parties will terminate the agency.
(v) Insanity of either party: If the principal or agent becomes incapable due to mental disability.
(vi) Bankruptcy: If the principal becomes bankrupt, the agency can be terminated.
(vii) War: If the principal and agent by virtue of geographical difference become enemies due to outbreak of war, etc.
(viii) By agreement: The principal and the agent may agree to terminate the agency.