StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

CIF Liverpool Contract - Essay Example

Cite this document
Summary
From the paper "CIF Liverpool Contract" it is clear that in accordance with a CIF contract, the buyer is required to pay against the tender of a genuine bill of lading that guarantees the products contracted to be sold, an insurance document and a saleable invoice that indicates the price…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94% of users find it useful
CIF Liverpool Contract
Read Text Preview

Extract of sample "CIF Liverpool Contract"

? DATA PROTECTION & CYBER SECURITY LAW By Data Protection & Cyber Security Law This is a law essay that seek to analyze and advise parties involve in “CIF Liverpool contract” (i.e. seller-A&W Ltd and buyer-N&Y Ltd). The problem arises when goods get lost on voyage and the buyer (N&Y Ltd) declines to pay despite seller having bill of lading documentation,1 the insurance policy and the invoice. The seller sues buyer believing they should be paid despite the loss of goods; on the other hand, the buyer does not pay since the goods are not delivered. This is a legal case that seeks proper analysis of the shipment documentations and the rights of seller, Shipment Company and buyer during the contract (Hinkelman & Shippey 2004). Parties’ rights in CIF Contract CIF contract: Cost, insurance and freight (CIF) denotes that the vendor delivers when the products pass the ship's bar in the port of consignment.2   A CIF contract needs the seller to ship at the port of consignment the required products in the underlying agreement of sale, to acquire a agreement of carriage (bill of lading) under which the products will be delivered to the established destination, to organize for insurance that will be obtainable for the advantage of the buyer, to formulate a commercial invoice and lastly to tender these papers to the purchaser who must be prepared and willing to pay the cost of the consigned products.3 In such a scenario, the ownership of the products may pass either on consignment or on delivery of the documents. The risk normally passes on consignments or as from shipments, but ownership does not pass pending the documents which symbolizes the products are provided in exchange for the cost.  As an outcome, the purchaser, after acceptance of the documents, can claim against the transporter for infringement of the agreement of carriage and against the underwriter for any loss enclosed by the policy. In this case, A&W Ltd is safe after tendering required documents to N&Y Ltd. In accordance to a CIF contract, the buyer is required to pay against the tender of a genuine bill of lading that guarantees the products contracted to be sold, an insurance document and a saleable invoice that indicates the price.4 The buyer is obliged to make payment against the tender of the respective papers of contract notwithstanding of fact that the products have been damaged or lost at maritime after the shipment.5 In the incident of loss, such as case of study, the buyer (N&Y Ltd) must pay the value on provision of the documents and necessary remedies, if any, will be against the transporter as indicated in the bill of lading or aligned to the underwriter as per the insurance agreement, but not against the seller (A&W Ltd) under the agreement of sale. If the purchaser declines to pay (as indicated in this case) against the papers without any legal justification, the buyer shall be legally responsible to compensate the seller for damage that may outcome, as enacted in Article 150 within the Commercial Transactions Law (Meiselles 2013). Under a CIF agreement, the seller performs the requirements by providing the documents to the buyer. The seller is not required to deliver the products to the agreed destination but the seller is under a negative responsibility not to avert the goods from being delivered to the buyer at their premises. This might be executed by deterring the carrier from delivering products to the buyer or by transferring them to a diverse destination (Meiselles 2013). However, if the agreement contains a section that imposes on the seller an obligation to transport the products to the contracted destination, it is not regarded as a CIF agreement, even if the documents of ‘CIF’ emerge in the contract.  Not all agreements that are expressed to be CIF agreements are such. According to Article 155 of the Commercial Transactions Law,6 it is stated that ’a contract which encloses such status as will make the seller accountable for the perishing of the products after shipment, or tenders the performance of the agreement conditional on the secure arrival of the ship, or which vests the purchaser with an alternative to accept the products according to the agreement or in accordance to the pro-forma provided to them at the instance of contracting, shall neither be a FOB sale nor a CIF, but shall be considered to be a sale provisional upon delivery at the destination.7 In consideration of the above, it is necessary to conclude that under a CIF contract the buyer cannot refuse the legal documentations and demand from the seller the genuine goods. Nor can the seller hold back the documents and tender the products.8 In addition, the performance of a CIF agreement is satisfied by delivery of the papers and not by the actual delivery of the products by the seller. Consequently, it has been debated that a CIF agreement is not a sale of products but a sale of documents. As a consequence, the characteristic of an ordinary CIF agreement is to be satisfied by delivery of the papers and not by the actual material delivery of the products by the vendor. A case law The feature of an ordinary CIF agreement is to be satisfied by tendering of the documents and not by the actual material delivery of the products by the vendor. This is why CIF contract is considered a sale of documents.9 In a CIF contract, the credentials which have to be delivered by the seller to the buyer will comprise a bill of lading. However, the agreement may specify for provision of a delivery order or provide the seller the option of issuing a delivery order. It has been acknowledged, since the English legal case of R Atcherley & Co and Re Denbigh Cowan & Co [1921] 90 LJKB 836,10 that the simple replacement of a delivery order for a bill of lading under the conditions of the agreements does not give any obligation to tender the actual products, so as to avoid the contract from being a genuine CIF contract. However, in one more English legal case, The Julia [1949] AC 293, an agreement for the sale of rye11 “CIF Antwerp” provided the vendor the alternative of tendering delivery orders or bills of lading.12 The vendor shipped the rye in mass and delivered a delivery order in deference of a quantity lesser than the whole shipment. This order was concentrating to the vendor’s agent in Antwerp. As a result, it was supposed that the agreement was not a CIF agreement but one for the delivery of the products in Antwerp. As the products were not so tendered, there was a totality failure of concern. Here it can be supposed that if the vendor in the Julia scenario had preferred to tender a bill of lading, he would have executed his requirements and it would have been a CIF agreement.13 Remedies associated with CIF contract parties. The remedies associated with CIF contracts are in regards to data protection and safety of investments during the shipment. The remedy associated to seller in this case (A&W Ltd) was that the contact they entered in protects him.14 The contract certain that A&W Ltd is not liable for loss of goods during shipment, thus the purchaser (N&Y Ltd) is obliged by law to pay for the products. The buyer (N&Y Ltd) on the other hand is protected against such losses by the bill of lading, giving an agreement privilege against the transporter, and the underwriter of insurance policy, covering most unintentional losses. This is a remedy that assist confirm to the buyer that insurance and carrier are liable for the losses. Case scenario Following the undertakings of the above requirement of the CIF contract, the parties involve N&Y and A&W ltd need to know that the contract is binding and the case is resolvable. The buyer should owner the deal and pay the seller since documentations are in support. The buyer should launch a claim against carrier and insurance the loss of goods. The condition of buyer paying can only be disputed if there is evident that the seller influenced carrier negatively to deliver the goods to a different destination.15 Conclusion In conclusion, the buyer should pay the seller and launch a claim from insurance and carrier since the spirit of the contract dictates so. The feature of an ordinary CIF agreement is to be satisfied by tendering of the documents and not by the actual material delivery of the products by the vendor (Lucas & Dickinson 2011). This is a confirmation that the seller tendered their obligation thus making it necessary for the buyer to oblige and make payment. In accordance to a CIF contract, the buyer is required to pay against the tender of a genuine bill of lading that guarantees the products contracted to be sold, an insurance document and a saleable invoice that indicates the price. This summarizes the case since all the parties have been advised accordingly and should know what cause of action to take for remedy. Bibliography BEALE, H. G., BISHOP, W. D., & FURMSTON, M. P. (2008). Contract: cases and materials. Oxford, Oxford University Press. CAMPBELL, D. (2007). Remedies for international sellers of goods. Austria, Yorkhill Law publishing. CARVER, T. G., & COLINVAUX, R. P. (1982). Carver's carriage by sea. London, Stevens & Sons. DIMATTEO, L. A. (2013). Commercial contract law: transatlantic perspectives. GASKELL, N., ASARIOTIS, R., & BAATZ, Y. (2000). Bills of lading: law and contracts. London [u.a.], Lloyd's of London Press. HENDRIKSE, M. L., MARGETSON, N. H., & MARGETSON, N. J. (2008). Aspects of maritime law: claims under bills of lading. Alphen aan den Rijn, The Netherlands, Kluwer Law International. HINKELMAN, E. G., & SHIPPEY, K. C. (2004). Dictionary of international trade: handbook of the global trade community includes 19 key appendices. Novato, Calif, World Trade Press. KIAPI, P. P. (2000). Commercial transactions. [Kampala], Uganda Law Books. KLOTZ, J. M. (2008). International sales agreements: an annotated drafting and negotiating guide. Alphen aan den Rijn, Kluwer Law International. LUCAS, D., & DICKINSON, H. (2011). Shipping & international law. Thomson Reuters. MEISELLES, M. (2013). International commercial agreements: an Edinburgh law guide. Edinburgh, Edinburgh University Press. RYDER, N., GRIFFITHS, M., & SINGH, L. (2012). Commercial law: principles and policy. Cambridge, New York; Cambridge University Press. SKAJAA, L., LORENZON, F., & SASSOON, D. M. (2008). Sassoon: CIF and Fob contracts. London, Sweet & Maxwell. WHINCUP, M. H. (2006). Contract law and practice the English system with Scottish, Commonwealth, and Continental comparisons. Alphen aan den Rijn, Kluwer Law International. WORTHINGTON, S. (2003). Commercial Law and Commercial Practice. Oxford, Hart Pub. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=270684. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“CIF Contracts Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
CIF Contracts Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/law/1489665-cif-contracts
(CIF Contracts Essay Example | Topics and Well Written Essays - 1250 Words)
CIF Contracts Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/law/1489665-cif-contracts.
“CIF Contracts Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/law/1489665-cif-contracts.
  • Cited: 0 times

CHECK THESE SAMPLES OF CIF Liverpool Contract

Commercial Law - The Sale of Goods

The author of the paper "Commercial Law - The Sale of Goods" argues in a well-organized manner that there have been valid offers, acceptance, and consideration involved in the contract with delivery completed.... According to the Sale of Goods Act 1979, under Section 18, if the contract is unconditional the property in the goods passes to the buyer when the contract is made immaterial of the time of payment or delivery.... Kevin has given his assent for the unconditional appropriation of the aquarium to the contract....
8 Pages (2000 words) Essay

Duty to Pay Wages in Contracts of Employment and Its Limitation in Practice

However, if the agreed-upon method of payment is subsequently altered by the employer and if such a departure leads to financial loss for the employee, then the employee is entitled to prefer a claim in respect of breach of contract.... Nevertheless, the statute makes available to employees, the right to protection from unauthorized deductions from their wages and such protection is applicable even to persons working on a contract basis or as apprentices....
11 Pages (2750 words) Essay

Employment Law Problem

Hussain was on a zero-hour contract and he wanted to shift to a permanent employment contract.... An issue of whether he deserved payment when he slept on the job falls under the Zero hours contract.... The case is based on the law of zero hour's contract, meaning that he only worked when called upon to do so.... Husain's agreement with his employer indicates certain aspects that qualify him as an employee and not merely an individual on contract: he is obligated to undertake work even after the end of his shift, the obligation is mutual and he is expressly and impliedly under the control of his employer to a sufficient degree....
8 Pages (2000 words) Essay

The Case of Georgian Town House Lease

It should be noticed that the tenancy agreement is a contract.... From this paper, it is clear that in order to understand the rights of both parties involved in a tenancy agreement we should primarily identify the nature of this agreement and its role within the legal framework of a particular region....
10 Pages (2500 words) Essay

Equity and Trusts: Proprietary Estoppel

In order to advise Theodore and Christopher with regard to their rights against Tony's estate, it will be necessary to consider their rights under the contract and the legal consequences of the contract being oral.... The objective of the following assignment "Equity and Trusts: Proprietary Estoppel" is to analyze a particular legal case that features estate contracts and the elements of property law....
6 Pages (1500 words) Assignment

Contract Laws in Respect of Purchasing in Retail Business

Therefore, balancing this discrepancy in dealing would be carefully avoided, if the burden of service, redress of grievances or repair and replacement of the product are shifted to the supplier with suitable clauses in the contract, reiterating the intermediary nature of the trade to the suppliers, based on the practical considerations, and to the consumers about the limitations in the nature of their responsibility.... Consequently, the terms and conditions of the contract for the purchase of goods from the manufacturer or supplier should be paid more attention in the business....
13 Pages (3250 words) Research Paper

Professions and Professional Bodies

This work called "Professions and Professional Bodies" describes the professional bodies that cover each of these professions and the importance and duties of professional bodies.... The author outlines that the unique duties of each profession are key to a particular stage of the construction process, where the key stages are designing, surveying....
7 Pages (1750 words) Essay

Private International Law: Lex Mercatoria

"Private International Law: Lex Mercatoria" paper focuses on Lex Mercatoria, a body of rules that were developed by the merchant community in medieval times to serve the needs of international trade; the 'lex mercatoria' served as an international commercial law.... ... ... ... Various scholars hold diverse views regarding the historical origin of 'lex mercatoria....
19 Pages (4750 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us