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1 TRANSLATION OF THE PROCEEDINGS AND ... - APFA News

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Commercial Sale of Goods Act of the Kingdom of Bhutan, 2001 was distributed<br />

on June 29, 2001, and the debate on it was held on July 17, 2001.<br />

The Hon’ble Minister for Trade and Industry said that the commercial sale of<br />

goods and taxation system has existed for a long time in the world. In the<br />

Thrimshung Chhenmo also, this system has been reflected to some extent.<br />

However, the increasing number of people engaged in trade and commerce has<br />

necessitated a specific act for commercial sales of goods. Considering the<br />

importance of this act, the Ministry of Trade and Industry has started drafting it<br />

since 1997. Except for movable goods, the articles of the act do not apply to the<br />

handling and protection of services, securities and immovable properties. A<br />

contract for the sale of goods exceeding Nu.100 should be indicated in writing.<br />

Legal stamps and signature of the two contracting parties must be stamped on it.<br />

If both the signatories to the contract are residing in Bhutan, the contract<br />

between them must be attested by disinterested witnesses whose name must also<br />

be written down. If provisions of the written contract are found to be<br />

contradictory, there must be a person to interpret and take decision. If the<br />

contract were to be amended, it must be indicated in writing. An oral agreement<br />

will not effect any change. The general responsibilities and obligations of the<br />

contracting parties are also stipulated. Besides, there are clauses governing the<br />

change in ownership of goods.<br />

Moreover, there are clauses pertaining to handing and taking over of goods<br />

between buyers and sellers, acceptance of identification procedure and payment<br />

for casualty of goods. The Chathrim takes into account the advantages and<br />

difficulties faced by buyers and sellers. With such a Chathrim available, people<br />

engaged in businesses in the country will be greatly benefited. It also cultivates<br />

trusts and confidence of non-Bhutanese parties while engaging in business with<br />

them. If disputes arise and the cases are forwarded to a court of law, it is very<br />

convenient to process them. As the country develops, trade and commerce also<br />

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