International Business Laws: Claiming Compensation for Damaged Goods in Carriage

INTERNATIONAL BUSINESS
LAWS

TABLE OF CONTENTS
ISSUE .............................................................................................................................................1
RULE ..............................................................................................................................................1
APPLICATION...............................................................................................................................3
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................5

ISSUE
Law of International businesses in Australasia assists the students, practitioners and the
business people to understand practical and legal aspects of the international trade and the
operations. In present case Mr Grey Gander has entered into contract with carrier SS Golden
Goose Lines for carrier for shipping 100 tonnes of perishable baked good form Florida port in
Unites States to New Castle Port of Australia on vessel Golden Gosling. It was agreed in the
contract that goods will be refrigerated during carriage. Prior to commencement of voyage
master of vessel had conducted due diligence ensuring that ship was seaworthy and the ship was
properly manned. However inspection regarding the refrigeration operating condition was not
made.
When ship reached port of Newcastle ship was placed in quarantine for 14 days period as
per order of Border Force Department regarding pandemic of COVID-19. During quarantine
period ship was hit by lightening strike and this disabled refrigeration system of Golden Gosling.
During unloading it was found that good were no more good for human consumption as they
were thawed due to electricity failure in refrigeration of ship. Contract for sale of goods provided
that the incoterm FOB will be used as neither party insured the goods. Investigation conducted
by Rooster revealed that refrigeration was working effectively till it was strike by lightening and
failed after ship was struck by the lightening. Mr Gander wants to conduct legal proceeding
against the carrier or seller of goods. It has to analyse the rules regarding the international
business law for claiming compensation for the loss of goods in carriage as the goods were
damaged due to lightening strike.
RULE
United Nation Conventions on the Contacts for Sale of Goods(CISG) is known as
Vienna Conventions which is multilateral Treaty establishing uniform framework for the
international trade and commerce. They are designed for facilitating international trade CISG
removes barriers among the state parties providing the substantive rules regulating duties and the
obligation of the parties to commercial transaction like contract information, delivery of the
goods and the remedies related to breach of contracts.
Contract for International Sale of Goods (Vienna Conventions)
Contracts for International Sale of Goods Act It is applicable to contract for sale of good
between the parties having place of business in different states. Offer of contract has to be
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