II- Xcan Grain Limited and Orbonor contract Analysis:

Xcan Grain limited is a multinational corporation based in Canada; its main activity is to sell

wheat in different countries around the globe. In the other hand, Orbonor is a Moroccan firm

that agreed on a contract in accordance with Xcan Grain limited in order to import wheat from

them. The contract gives more insight about the trades specifications, which the both firms

approved on by signing the contract. The contract includes many details such as the

conditions that the both contractors have to follow, in addition to the date when the deal was

contracted and the sale contracts number. In the beginning, the contract must comprise a

commodity that represents the service or product which is traded (Wheat). Secondly, the

contract should cite the price and quantity of the commodity, in addition to the shipment and

the delivery destination. Then, the contract has to mention details about the payment process

and keep in mind about the shipment papers given by the other part of the trade. The contract

should be full of specifications about the shipments conditions, especially the shipments

deadline so as to reach its destination. The contract must show how much time is needed for

discharging the commodity, in addition to its frequency and its packing process.

Subsequently, the contract should take the GAFTA rules into consideration while dealing with

the inspection and arbitration of the commodity. The verdict given by the arbitrator is final

and it is the losing party which is obliged to pay the costs and charges of the arbitration.

Moreover, there are some observations that should be taken seriously, for example: Orbonors

agents have the right to examine the loading process of the commodity and in the other hand

the Xcan Grain Limited must collaborate with the Moroccan company and the let the agents

do their job. Next, the contract should contain an essential section which is about if one of the

parties decided to default. This section gives elucidation about the methods by which the

indemnities are to be fixed. It also brings specifications about different possible default

situations, including the default price. In general if a default happens, the situation should be
elucidated through arbitration and by following GAFTAs rules. The party which default is in

breach of contract and must absolutely reimburse for the arbitration expenses to the arbitrator

and the damages to the winning party. Finally, the contract contains distinctive conditions

about the party that must pay for the fees, taxes, and expenses of the loading process of the

commodity.