LJU4804 Assignment 2
Semester 2 2024 (572928) -
DUE 13 September 2024
QUESTIONS WITH ANSWERS
, 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
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