What I like about the response from Jerry is that
Post# of 2009
Posted On: 12/20/2014 3:34:43 PM
What I like about the response from Jerry is that it demonstrates the intricacies involved with commodities trading especially when foreign countries are involved. Individuals not versed in the principles of commodities trading tend to think it is cut and dry from start to finish. Many hurdles are involved as the process works it way through each level of any transaction which tends to turn into many transactions for a single delivery of a given product. Especially with oil and oil related products.
#2 Posted : about 4 hours ago
Questions #1: Why is the supplier having a difficult time fulfilling/deliverying their product?
Response to #1: We do not know why the supplier is having difficulty in fulfilling the contract and are not in a position to find out due to the terms and conditions of the Sales and Purchase Agreement (SPA) between the supplier and the JV002. They have on two separate occasions provided us with documentation which did not meet our standards upon completion of our due diligence. Since the supplier is based in a foreign country, the process to enforce the contract must follow the procedures as laid out by the International Chamber of Commerce (ICC). This is a very slow and costly procedure. In the meantime, the supplier has represented to JV002 that they intend to fulfill their contractual obligations per the SPA. Failure by the supplier to perform per the SPA will cause them to be in default and classified as a Non-Performer. This is not a classification they wish to have as JV002 could Black List them in the industry which could severely impact their business relationships.
Questions #2: Is the recent drop in price effecting supplier's ability to deliver?
Response to #2: It should not be. We have no means of understanding their issues as to why they are not performing to the SPA terms and conditions. They have not communicated their reasons to JV002 and as such are not required to per terms and conditions of the SPA. They either perform or not perform. The JV002 remedy is to pursue legal action as outlined by the ICC.
http://forum.xunenergy.com/default.aspx?g=pos...d#post6120
#2 Posted : about 4 hours ago
Questions #1: Why is the supplier having a difficult time fulfilling/deliverying their product?
Response to #1: We do not know why the supplier is having difficulty in fulfilling the contract and are not in a position to find out due to the terms and conditions of the Sales and Purchase Agreement (SPA) between the supplier and the JV002. They have on two separate occasions provided us with documentation which did not meet our standards upon completion of our due diligence. Since the supplier is based in a foreign country, the process to enforce the contract must follow the procedures as laid out by the International Chamber of Commerce (ICC). This is a very slow and costly procedure. In the meantime, the supplier has represented to JV002 that they intend to fulfill their contractual obligations per the SPA. Failure by the supplier to perform per the SPA will cause them to be in default and classified as a Non-Performer. This is not a classification they wish to have as JV002 could Black List them in the industry which could severely impact their business relationships.
Questions #2: Is the recent drop in price effecting supplier's ability to deliver?
Response to #2: It should not be. We have no means of understanding their issues as to why they are not performing to the SPA terms and conditions. They have not communicated their reasons to JV002 and as such are not required to per terms and conditions of the SPA. They either perform or not perform. The JV002 remedy is to pursue legal action as outlined by the ICC.
http://forum.xunenergy.com/default.aspx?g=pos...d#post6120
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