International Trade Law

International Trade Law

Table of Contents
Answer to Question 1.................................................................................................................3
Answer to Question 2.................................................................................................................3
Answer to Question 3.................................................................................................................4
Answer to Question 4.................................................................................................................5
Answer to Question 5.................................................................................................................6
Bibliography...............................................................................................................................8
Books......................................................................................................................................8
Legislations............................................................................................................................8
Cases......................................................................................................................................8

Answer to Question 1
The bills of lading can be rejected by Barney Limited on grounds that there have been a
manipulation of dates in the bills of lading thereby leading to the malpractices such as fraud
and misrepresentation. If the bills of lading are in contravention of the terms and conditions
of the Cost Insurance Freight contract made and executed between Barney Limited and Sally
Limited, Barney Limited can reject such bills of lading on such grounds also. If it is
concluded form the facts of the case that there was a charter party with regard to the contract,
it would be preferred over the bills of lading taking account of rejection by Barney Limited.
In the case of President of India v Metcalfe Shipping Company Limited, it was held by the
Civil Division of the Court of Appeal of England and Wales that a charter party would
prevail over a bill of lading since a bill of lading is deemed to be a mere receipt of goods
which is issued when the goads are loaded with regard to be shipped to the destination port1.
Additionally, it was also agreed that the moisture at the maximum level for the Greek organic
extra virgin olive oil to be 0.25 %. However, the certificate issued by the SGS surveyor
implies that the level of moisture level for the Greek organic extra virgin olive oil is 0.3%. As
a result, it would be a valid ground for Barney Limited with reference to non-acceptance of
bill of lading as it implies the violation of the terms of the Cost Insurance Freight contract on
a prima facie basis. However, the bills of lading cannot be rejected in terms of quantity since
it was originally agreed that that the quantity would be thirty thousand mt. along with the fact
that it can be more or less 5% and the bills of lading imply that the quantity of the Greek
organic extra virgin olive oil is 30, 332.224 as implied form the facts of the case. Barney
Limited can also vehemently reject the certificate issued by the SGS surveyor along with the
bills of lading. However, the commercial invoices issued cannot be rejected by Barney
Limited since they imply that the virgin olive oil is of Greek or Spanish origin and the terms
and conditions of the Cost Insurance Freight contract state that the product is Greek organic
extra virgin olive oil. Since the bills of lading have been issued in Greece which is a
contracting party to the Hague Visby Rules, the Hague Visby Rules shall be applicable taking
account of Article 102. As a result, the exclusion of Hague Visby Rules from a contract of
carriage shall be void according to Article 3 (8). The inclusion of the common law of
England and Wales into the Hague Visby Rules is by the virtue of the Carriage of Goods By
Sea Act of 1971 which is a legislation passed by the Parliament of the United Kingdom3. As a
result, the Hague Visby Rules are a part of the common law of England and Wales as implied
from the facts and circumstances of the case that the jurisdiction would be under the ambit of
English law
Answer to Question 2
The United Customs and Practices for Documentary Credits (UCP) 600 imply the guidelines
to be followed in terms of the issuance of the letters of credit. It is currently applicable in one
1 President of India v Metcalfe [1970] 1 QB 289
2 Hague Visby Rules 1979
3 Carriage of Goods by Sea Act 1971