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CARRIERS ACT, 1865

§2 of Carriage by Road Act, 2007 defines common carrier.

I. INGATE V CHRISTIE

Everybody who undertakes to carry for anyone who asks him is a common carrier. The criterion

is whether he carries for a particular person only, or for everyone. If a man holds himself out

to do it for everyone who asks him, is a common carrier but if he does not do it for everyone

but carries for you and me only, then it is a matter of special contract.

II. RIVER STEAM NAVIGATION CO. LTD V SHYAM SUNDER TEA CORP, 1962 (2) SCR 802

There is nothing in common law which hinders a carrier from carrying for favoured individuals

at an unreasonably low rate, or even gratuitously. All that law requires is that he should not

charge any more than was reasonable.

Common carrier can fix goods and routes both.

GROUNDS FOR REFUSAL OF GOODS BY COMMON CARRIER

1. No room or place available in his vehicle.

2. Goods are not of the type which he professes to carry.

3. Destination is not on the route.

4. Goods are unlawful, dangerous or improperly packed, hazardous or expensive etc.

(must be declared in advance by the consignee).

5. Full carriage price is not paid in advance.

6. Destination falls under disturbed area.

WHO HAS INSURABLE INTEREST?

Whoever runs the risk of possession has insurable interest. So,

1. Owner,

2. Transporter/carrier.
CAN THERE BE DOUBLE INSURANCE ON THE SAME GOODS?

Yes, can be there.

LIABILITIES OF COMMON CARRIER?

§10 of the Carriage by Road Act, 2007. Value of good he carries, the freight he charges and

the nature of goods. These three things determined by the contract of carriage. Has to be in

writing. If goods are expensive dangerous etc., freight may be extra (§11 of Carriage by Road

Act, 2007)

DUTIES OF COMMON CARRIER?

These are implied.

1. Duty to follow instructions of the consignor during carriage

2. Duty to deliver within reasonable time (reasonable time is question of fact)

3. Duty not to deviate from the route

4. Goods must be delivered normal business hours

If route deviated, contract of carriage has not been followed properly. Any loss, damage to

goods in case of deviation (except in emergency), compensation by carrier.

WHY IS THERE DUTY NOT TO DEVIATE?

Risk will increase, change in time, charge will change, issues in insurance.

WHY FOLLOW INSTRUCTIONS OF CONSIGNOR?

To exercise lien, when consignee becomes insolvent and freight will not be paid. Duty of carrier

to follow consignors’ instructions. If destination changes, duty of carrier to follow instruction

and reach new destination.

DUTY OF ROAD WORTHINESS?

Whether the carrier is worthy to sustain perils of the road. Of three types –

1. Technical Road Worthiness

2. Technical Cargo Worthiness – goods must be having facility to carry.


3. Road Worthiness for Intended Consignment

WHAT IS PRIVATE CARRIER

Person who in the course of business, or occasionally undertakes carriage of passengers or

other people’s goods, and is not registered as a common carrier.

GROUNDS FOR REFUSAL BY PRIVATE CARRIER

There must be bona fide grounds for refusal, otherwise, cannot refuse.

CONTRACT OF CARRIAGE BY SEA (ICGSA, 1925)

Bill of lading and charter party.

Whole ship hired  charter party (not regulated by carriage of goods)

Goods carried along with others goods  bill of lading

BILL OF LADING

Literary meaning is to unlock the warehouse, to claim own goods. Three parties, consignor

(shipper/seller), ship owner, consignee.

Purposes 

1. It is a formal receipt by the ship owner acknowledging the goods have been received,

for the purposes of transportation from one place to another.

2. Bill of lading is evidence of contract of carriage, incorporating the details (rules and

regulations) of the contract of carriage.

3. Document of title of the goods, belongs to the consignee (buyer). Shows constructive

possession. It is a bearer cheque.

Bill of Lading due to its freely transferrable nature, its considered a Negotiable Instrument.

Carver  Bill of Lading is a document issued by or on behalf of the carrier of goods by sea to

the person with whom he had contracted to carry goods.


Scrutton  Bill of Lading is a transport document that may be issued or on behalf of the owner

of the carrying ships.

If some slot/space is left, will be offered to carry  charter party bill of lading/slot charter

party contract.

BASIC ELEMENTS OF BILL OF LADING CONTRACTS

1. Statement about the general nature of the goods

a. Weight of the goods

b. Quantity of the goods

c. Number of packages/pieces

2. Apparent conditions of the goods [10% damaged – Claused/dirty Bill of Lading etc],

3. The name and principle place of business of the carrier,

4. Name of the shipper,

5. Name of the consignee, if named by the shipper,

6. Name of the port of loading and the date on which the goods were taken over by the

carrier for the purpose of carriage.

7. Name of the port of discharge,

8. Number of originals of the bill of lading, if more than 3 issued

9. Place of issuance of the bill of lading

10. Signature of the Carrier or person acting on his behalf

11. The freight charged and if not paid in advance, who will pay the freight

12. The date or period of delivery at the port of discharge, if expressly agreed upon,

between the parties, and

13. Any increased limit/limits of liability.

TYPES OF BILL OF LADING

1. Charter Party Bill of Lading


2. Negotiable and Non-Negotiable Bill of Lading

3. Shipped (received + shipped) and Received Bill of Lading (goods received by carrier,

but navigation has not started)

4. Clean and Claused Bill of Lading

5. Switch Bill of Lading – can alteration be made to the bill subsequently? Who will do?

6. Thorough Bill of Lading ()

7. House and Groupage Bill of Lading

8. Stale Bill of Lading

9. Straight and Seaway Bill of Lading

10. Electronic Bill of Lading

TYPES OF NAVIGATION/SHIPPING

Linear – there is a fixed route.

Tramp – wherever the carrier receives cargo, navigation can start from there itself. (most

preferred)

IMPLIED UNDERTAKING TO THE CARRIER

1. Sea worthiness – Absolute sea worthiness is expected in charter party contract, and in

bill of lading, due diligence is expected. Competent crew members and requisite

equipment must be there. Can this be contracted out? Exclusion clause? No. party

autonomy does not regulate this. Cargo worthiness.

2. Reasonable dispatch – Dispatch must take place within reasonable time. Time is of

essence

3. No Deviations – Allowed during emergency, blockade and expressly mentioned is that

allowed to save property and life.

4. Not to load goods liable to cause danger or delay to the ship (dangerous goods)
FORWARD FREIGHT AGREEMENT

Whatever freight is fixed today, will apply when charter party contract is in force. Freight is

set in advance. Saves from fluctuation of freights.

HOW IS FREIGHT DETERMINED?

In Bill of Lading, freight is paid in advance.

Lumpsum Freight

Advanced Freight

Pro-Rate Freight

Dead Freight

Back Freight

POPULAR CHARTER PARTY CONTRACTS

1. SHELL TIME 4 – time charter party of crude oil tankers.

2. NYPE 1993 – time charter party of the ships of dry cargo.

3. BARECON 2001 – bareboat charter party of any type.

4. BOX TIME 2004 – time charter party of container vessels.

5. Intertank time 80 – time charter party for tankers.

6. BPOY – voyage charter parter for tanker

7. GAS BOY 2001 – voyage charter party for gas tankers.

TYPES

1. Space/Slot charter party –

2. Voyage charter party –

3. Consecutive Voyage charter party –

4. Time charter party –

5. Demise charter party –

6. Bareboat charter party –


7. Bareboat charter party with purchase option –

8. Sale and Charter back –

MAIN PROVISIONS OF A CHARTER PARTY CONTRACT

13/10/17

RISK INVOLVED IN SALES CONTRACT?

§6 and §26 of SOGA, physical risks, financial risks, risk of credit worthiness, the buyers

acceptance risk, legal risk and political risks (international sales contract)

General principles of Sales Contract?

1. Party Autonomy

2. Binding Nature

3. No fixed format

4. Good faith contact

5. Duty of confidentiality

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