LJU4804 Assignment 2
Semester 2 2024
(572928) - DUE 13
September 2024
QUESTIONS WITH COMPLETE ANSWERS
[School]
[Course title]
, LJU4804 Assignment 2 Semester 2 2024 (572928) - DUE 13 September 2024
Just Jeans (Pty) Ltd is a clothing manufacturing company incorporated in South Africa with its
principal place of business in Durban. Just Jeans regularly purchases large consignments of
denim material from Materiale S.p.A, a company incorporated in terms of the laws of Italy with
its principal place of business in Milan (Italy). In January 2024 Just Jeans purchased another 2
large consignment of material from Materiale. During the ongoing business relationship, the
order was always for Blue Indigo cloth and this is the only colour of cloth that Just Jeans uses for
their denim brand. When the latest consignment arrived at Just Jeans, the quality controller
determined that the colour was not Blue Indigo, but indeed Stone Washed Blue. Just Jeans
informed Materiale that the material did not conform to the contract, but Materiale disputed this.
The contract contained an arbitration clause, referring disputes arising out of the agreement to
settlement by means of institutional arbitration administered by the Arbitration Foundation of
Southern Africa. The contract did not contain a choice of law clause. In terms of the contract, the
consignment had to be shipped CIF (Durban) and payment had to be made into Materiale’s
business account held at Intesa Sanpaolo, Milan. As mentioned, the consignment was delivered
to Just Jeans’s warehouse, but Just Jeans refused to make payment.
1. Why is this a private international law matter? (1)
2. How would the arbitral tribunal determine the law applicable to the substance of the dispute?
Refer to the relevant provision of the UNCITRAL Model Law on International Commercial
Arbitration, incorporated as Schedule I to the International Arbitration Act 15 of 2017. (3)
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