Paper Topic:

International Trade ( Uk law)

INTERNATIONAL TRADE (UK LAW

2006

TABLE OF CONTENTS

Baxwell as to his rights under the sale contract 1

Cargolines Ltd as to its liability under the contract of carriage 4

Floyd 's Insurance Plc as to its legal position under the insurance policy 8

Westland Bank as to the legal position under the insurance policy 11

Bibliography 13 Baxwell as to his rights under the sale contract

By way of introduction , a Cost , Insurance and Freight (CIF ) term in a sales contract is encountered in international trading when ocean

br transport is used . CIF is an International Commerce Term (Incoterm identical in most particulars with Cost and Freight (CFR Significantly , in a CIF contract , the seller has the obligation to obtain in transferable form a marine policy insurance to cover the risks of transit on the cargo in favor of the buyer . Insurance coverage required under such contracts are either Institute Cargo Clauses A , B and C . Once the goods are delivered on board the vessel or to the carrier , depending on the terms of the sales contract , the seller 's liability for the goods end

In the contract in the instant case , which is on CIF terms , Sweet as the seller has the obligation to ship the goods in conformity to the contract with Baxwell . Sweet had the obligation of delivering the goods to the named port of destination , pursuant to the provisions of Incoterms

However , the risk of loss of or damage to the goods due to events occurring after the time of delivery are borne by the buyer . The seller Sweet , pursuant to Incoterms , has to provide for marine insurance against the buyer Baxwell 's risk of loss of or damage to the goods during the carriage

In this case , the contract between Baxwell and Sweet provided for the consignment of 10 ,000 books to Singapore , where Baxwell is located . The named port of destination under the contract is thus in Singapore While loading the cargo in England , the crane driver negligently dropped 100 books into the water before they reached the ship

Pursuant to the provisions of Incoterms , the seller Sweet has the obligation of delivering the goods on board the vessel at the port of shipment on the date or within the agreed period in the contract . The goods were damaged due to the packaging which was insufficient to prevent irreparable damage

Sweet , as the seller , had the obligation to provide at his own expense packaging which is required for the transport of goods arranged by him The damage to the goods in this case occurred even before goods were delivered on board the vessel which makes Sweet , the seller , liable

If the damage occurred after the goods were delivered on board the vessel The Banger , then pursuant to the CIF terms of the contract Baxwell would have to bear the loss or damage . However , this did not happen in this case . The goods were damaged before delivery on board the vessel , therefore making Sweet liable...

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