[Company name]
LJU4804
Assignment 2
Semester 2 2024
(572928) - DUE 13
September 2024
QUESTIONS WITH DETAILED 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 Model Law on International
Commercial Arbitration, incorporated as Schedule I to the International Arbitration Act
15 of 2017. (3)
3. If the tribunal finds the rules of South African Private International Law applicable,
explain how it would determine the proper law of the contract if the objective approach
LJU4804
Assignment 2
Semester 2 2024
(572928) - DUE 13
September 2024
QUESTIONS WITH DETAILED 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 Model Law on International
Commercial Arbitration, incorporated as Schedule I to the International Arbitration Act
15 of 2017. (3)
3. If the tribunal finds the rules of South African Private International Law applicable,
explain how it would determine the proper law of the contract if the objective approach
