If the quality outturn of a shipment made under ICA rules is considered deficient, is it possible to 'cancel' any remaining shipments due under the contract?

No, cancellation of a contract is not permitted, even if it can be established that one party was at fault. Any contract that is not to be fulfilled must be closed by invoicing back.

If a shipment is delayed by the seller, can the buyer claim compensation for late delivery or cancel the contract?

If there is a delay, it will depend upon the terms of the contract as to whether any compensation is due for delay. The contract can only be closed by invoicing back and the payment of any applicable market difference.

If neither party to a contract made under ICA rules are located in the UK, can a different choice be made as to the law of the contract?

No, contracts made under the Bylaws of the ICA are subject to English law and jurisdiction – this cannot be excluded or changed by the parties, wherever their geographical location.

If parties to an ICA contract have not both signed the contract form, is the agreement still binding?

The general principle under English Law (which governs the ICA arbitral system), is that a signed contract is not necessary, provided it can be established that an offer and acceptance can be established. A telephone or brief e-mail exchange may thus be sufficient to bind the parties, even though the follow up of a formal contract is usually anticipated.

Must an arbitration agreement be evidenced, to be valid?

Although a contract need not be signed to be binding, an ICA arbitration agreement must be in writing.

Whilst making their business subject to ICA jurisdiction, can parties nonetheless agree contract terms that are different from ICA Rules?

Parties contracting under ICA jurisdiction can freely agree terms that are different from ICA Rules, but may not change any Bylaws. For example, the parties might wish to make provision for weighing, insurance, invoicing or other particulars that are different from the Rules. The only ICA Rules that cannot be excluded or changed are the invoicing back provisions of Rules 225 and 226.

When a buyer has a quality complaint, what is the correct procedure to follow?

The procedure for following up quality issues is laid out in the ICA Bylaws. It is important that the time frames set down are adhered to, particularly if a quality arbitration is likely to result.

Can a party use the ICA arbitration system to pursue 'smaller' issues, such as unpaid weight claims?

The ICA system is designed to allow the pursuit of all claims arising out of contracts subject to its jurisdiction, both technical and quality. For smaller issues, it may be a good idea for the parties to agree on a sole arbitrator to handle such matters, to assist a quick resolution.

The questions above are a selection of those that are frequently asked. Have a contract problem, unsure where to seek help?

At Liverpool Cotton Services, we welcome your questions and are pleased to try and help you resolve contract issues and guide you through ICA arbitration procedures. We offer a FREE initial consultation.