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High Seas Sale Model

23 February 2024

Hello!

Q. Mr. A (China), Mr. B (Singapore) and Mr. C (India).

Goods were first exported from China to Singapore. But before it cleared the custom frontier of Singapore, Mr. B sold (high-seas sale) it to Mr. C. Mr. C (India) don't want it's competitors in India to know about it's original supplier - Mr. A (China).

If such high-seas -sale takes place, can such business confidentiality for Mr. C (India) be maintained so that no one in India can know about the original supplier (Mr. A of China) though if Mr. B (Singapore) identity is disclosed, it doesn't matter to Mr. C (India)?

Please answer. If possible, substantiate it with applicable law.

Thank you!

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6 Replies

Yasaswi Gomes new (Finance ) (4484 Points)
Replied 23 February 2024

Certainly! Let’s delve into the concept of high-seas sales and business confidentiality in this scenario.

High-Seas Sale:
- A high-seas sale refers to a transaction where goods are sold while they are still in transit on the high seas (i.e., during their journey between two countries).
- In your case, Mr. B (Singapore) sells the goods to Mr. C (India) before they clear the customs frontier of Singapore.
Business Confidentiality:
- Mr. C (India) desires to maintain confidentiality about the original supplier, Mr. A (China), from its competitors in India.
- However, Mr. B’s identity (as the intermediary seller) is not a concern for Mr. C.
Legal Considerations:
- The legal framework for high-seas sales and confidentiality varies by jurisdiction. Let’s explore some aspects:
- Trade Secrets and Confidentiality:
  - Trade secrets are valuable business information that provides a competitive advantage. Maintaining confidentiality is crucial for businesses.
  - In India, the Indian Contract Act, 1872, recognizes the importance of confidentiality in contracts. Parties can agree to keep certain information confidential.
  - However, the specifics of trade secret protection may not directly apply to high-seas sales.
- Disclosure of Supplier Identity:
  - If Mr. B (Singapore) discloses Mr. A’s (China) identity, it may not directly impact Mr. C’s (India) confidentiality.
  - Mr. C’s concern is primarily about competitors in India knowing the original supplier (Mr. A).
  - As long as Mr. A’s identity remains undisclosed, Mr. C’s confidentiality objective can be achieved.
- Applicable Law:
  - While there isn’t a specific law governing high-seas sales confidentiality, general contract principles apply.
  - Parties can include confidentiality clauses in their agreements to protect sensitive information.
  - It’s advisable for Mr. C (India) to have a well-drafted contract with Mr. B (Singapore) that addresses confidentiality and non-disclosure.
Practical Steps:
- Mr. C (India) should:
  - Clearly define confidentiality obligations in the contract with Mr. B (Singapore).
  - Ensure that Mr. B (Singapore) does not disclose Mr. A’s (China) identity to anyone in India.
  - Seek legal advice to draft a robust agreement that safeguards confidentiality.

In summary, while there isn’t a specific law directly addressing high-seas sales confidentiality, contractual agreements and prudent practices can help Mr. C (India) maintain confidentiality regarding the original supplier (Mr. A) while allowing disclosure of Mr. B Identity if needed

sabyasachi mukherjee (26120 Points)
Replied 25 February 2024

Applicable sale

Yogesh Verma (5 Points)
Replied 25 February 2024

Sorry! Not convincing. Seems to be machine reply.

Yogesh Verma (5 Points)
Replied 25 February 2024

I didn’t get that.

Yasaswi Gomes new (Finance ) (4484 Points)
Replied 25 February 2024

Originally posted by : Yogesh Verma
	Sorry! Not convincing. Seems to be machine reply.

I got chatgpt recently. but the answer is not wrong.

While there isn’t a specific law governing high-seas sales confidentiality, general contract principles apply.
Parties can include confidentiality clauses in their agreements to protect sensitive information.
It’s advisable for Mr. C (India) to have a well-drafted contract with Mr. B (Singapore) that addresses confidentiality and non-disclosure.

Privacy cannot be enforced by the law cause everyone has fundamental rights to speak about others. You have right to privacy as an individual only but not for your company. So you need to speak to your partner. Plus I heard all foreign transactions are monitored