Exam

Question 1

Charterparties

Answer 1

Bare boat charterpartys
Time charter
Voyage

Question 2

What laws applies to the contract in international sale of goods?

Answer 2

General - the parties choose what laws apply (if not, the sellers usually applies)
CISG - when both parties are in a cisg state rule 1(a) & it would also apply to international sales were the rules of private international law lead to the application lead to the application to the law of the contracting law.

Question 3

What are the obligations of the seller and remedies of the buyer under CISG

Answer 3

Seller - must deliver goods conforming to contract & at agreed time and place
Buyer - request specific performance(remedy/redelivery), termination if fundamental breach, damages unless failure to perform was beyond sellers control

Question 4

When does the risk pass from buyer to seller? Same answer for both English law and CISG

Answer 4

If specified: as agreed
If the goods are to be shipped; generally when goods are handed over to first independent carrier
According to shipment terms
(The passing of risk is always put in contract and the Incoterms are used)

Question 5

Ex works

Answer 5

“Ex Works” means that the seller delivers when it places the goods at the disposal of the buyer at the seller’s premises or at another named place (i.e., works, factory, warehouse, etc.). The seller does not need to load the goods on any collecting vehicle, nor does it need to clear the goods for export, where such clearance is applicable.

Question 6

CIF

Answer 6

“Cost, Insurance and Freight” means that the seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination. The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIF the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.

Question 7

Fob

Answer 7

“Free on board” means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered. The risk of loss or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.

Question 8

Dap

Answer 8

“Delivered at Place” means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.

Question 9

Cip

Answer 9

“Carriage and Insurance Paid to” means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIP the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.

Question 10

Which are the parties to the CISG

Answer 10

Buyer and seller

Question 11

What are the parties to a contract of carriage

Answer 11

Carrier and seller or buyer

Question 12

What are the steps to brining a cargo claim under CISG

Answer 12

1. Establish when did the risk pass
2. Were the goods delayed
3. Were the goods not conforming to contract
4. What are the remedies available
5. Are there any defenses/exclusions of liability

Question 13

What are the remedies for the buyer under cisg

Answer 13

The main remedies the buyer has is to request specific performance or to avoid the contract or to claim damages (economic compensation for the loss). Its very difficult to avoid the contract under the CISG it must be a fundamental breach before the buyer can avoid the contract and get the purchase price back.

Question 14

How does limitation work in practice (step by step)

Answer 14

Is there a liability?
What are the losses/any special limitation rules?
Establishing a fund/security 
Claims are tried 
Funds are distributed 
What about the balance loss 
For more se page 60

Question 15

Explain the liability example for the cargo claim “strong wise Ltd v east Australia resources” ( multiple claims)

Answer 15

Containership at anchorage at Melbourne. Vessel started drifting and port instructed master to await pilot arriving. Anchor fouled a gas pipeline. Pilot arrived and started moving the ship, dragging the anchor and rupturing the pipeline.

• Owners: One limitation fund should be established.
• Pipeline owners: Four limitation funds should be established:
  1) navigational error leading to original fouling
  2) order of the vessel to go astern (further pulling pipeline)
  3) order of the vessel to go ahead
  4) further order to go astearn

Held: There should be 2 funds, one for the bad navigation/error made by the pilot and one for the damage of the pipeline

Question 16

What are the main points in the limitation convention?

Answer 16

1. Shipowner is not the only party entitled to limitation-Charterers, manager and operator of the ship
2. One main principe is that everybody who losses property, got injured or had suffered any sort of loss are risking having their claim limited
3. Salvage, oil pollution and nuclear are exceptions
4. In collision both parties are entitled to limitation
5. Limits are higher on passenger claims than other claims

Question 17

What is the main point of the civil liability convention 1992

Answer 17

Registered shipowner has strict liability for pollution damage caused by the escape or discharge of persistent oil from his ship. This means that he is liable even in the absence of fault on his part. He is exempt from liability only if he proves that:

• the damage resulted from an act of war, hostilities, civil war, insurrection or a natural phenomenon of an exceptional, inevitable and irresistible character, or
• the damage was wholly caused by an act or omission done with the intent to cause damage by a third party, or
• the damage was wholly caused by the negligence or other wrongful act of any Government or other authority responsible for the maintenance of lights or other navigational aids, in the exercise of that function.

Question 18

Who has title to sue under Carriage of goods by sea act?

Answer 18

(a) Lawful holders of transferable bills of lading, (b) parties for the time being named as Consignee on sea waybills and straight bills, and (c) parties whom the carrier undertakes to deliver the goods under a ship delivery order

Question 19

When does The Hague Visby rules apply?

Answer 19

1. B/L issued in Hague Visby state
2. Carriage starts in Hague Visby state
3. B/L incorporates law of Hague Visby state
4. B/L incorporates Hague Visby rules

Question 20

What are the most important parts of The Hague Visby rules?

Answer 20

Article 3 - Main responsibility’s and liabilities for the carrier
Rule 3 is important because it prevents the carrier from excluding itself from liability
Article 4 - exclusion of liability for carrier
Article 5 - limits liability to 666.67 units of account per package or 2 units of account per kilogram of gross weight of the goods lost or damaged

Question 21

What is tort?

Answer 21

Tort law is the area of the law that covers most civil suits. Generally, every claim that arises in civil court, with the exception of contractual disputes, falls under tort law. The concept of this area of law is to redress a wrong done to a person and provide relief from the wrongful acts of others, usually by awarding monetary damages as compensation. The original intent of tort is to provide full compensation for proved harms.

Question 22

Why could it be better for the claimant to claim damages under rule 1 in article 3 rather than rule 2?
(Due dilligance or properly man etc)

Answer 22

Rule