High Seas Sale Model

357 views 6 replies

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! 

Replies (6)

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

  1. 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.
  2. 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.
  3. 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.
  4. 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

Applicable sale

Sorry! Not convincing. Seems to be machine reply.

I didn’t get that.

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

besides, chatgpt gets tired on old computers and gives vague answers

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 June 2026
Accountant (Finance & Compliance)

TRIEYEZ

Kolkata

CA

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details