Contract of Carriage by Sea

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5 Questions

What is the primary purpose of a contract of carriage by sea?

To transport goods or passengers by sea in exchange for payment

Which type of contract is a receipt and contract between the carrier and the shipper?

Bill of Lading

What is the term for the carrier's limited responsibility for loss or damage to goods?

Limited Liability

What is the main difference between a Bill of Lading and a Waybill?

A Bill of Lading is a negotiable document, while a Waybill is non-negotiable

What is the purpose of a Charter Party?

To hire a ship for a specific period

Study Notes

Definition A contract of carriage by sea is a type of contract where a carrier agrees to transport goods or passengers by sea in exchange for payment.

Key Features

  • A contractual agreement between the carrier and the shipper/consignee
  • Goods or passengers are transported by sea
  • Carrier is responsible for safe transportation
  • Shipper/consignee pays the carrier for the service

Types of Contracts

  • Charter Party: a contract between the shipowner and the charterer, where the charterer hires the ship for a specific period
  • Bill of Lading: a receipt and contract between the carrier and the shipper, acknowledging the receipt of goods and outlining the terms of transportation
  • Waybill: a non-negotiable document that serves as a receipt and a contract between the carrier and the shipper

Carrier's Liability

  • Limited Liability: carriers are not liable for loss or damage to goods exceeding a certain amount (e.g. Hague-Visby Rules)
  • Exceptions: carriers are not liable for loss or damage caused by:
    • Act of God
    • Act of war
    • Negligence of the shipper or consignee
    • Inherent vice of the goods
    • Insufficient packing or labeling

Shipper's Obligations

  • Proper Packing and Labeling: shipper must ensure goods are properly packed and labeled
  • Accurate Information: shipper must provide accurate information about the goods, including weight, measurement, and value
  • Payment of Freight: shipper must pay the carrier the agreed-upon freight charge

Dispute Resolution

  • Arbitration: disputes may be resolved through arbitration, as agreed upon in the contract
  • Jurisdiction: disputes may be resolved in a specific court or jurisdiction, as agreed upon in the contract

Test your knowledge of contracts of carriage by sea, including types of contracts, carrier's liability, shipper's obligations, and dispute resolution. Understand the key features and provisions of charter parties, bills of lading, and waybills.

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