law of international trade

This is a discussion on law of international trade within the International Trade Law forum, part of the International Law Issues category; I am shiva from southampton, UK. it is quite urgent can u reply me fast...? if so i will be ...

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Old Apr 27th, 2009, 10:42 AM   #1
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Confused law of international trade

I am shiva from southampton, UK. it is quite urgent can u reply me fast...? if so i will be thankful to u....
The problem
By a voyage charterparty dated 15th February 2009 Corn Traders Ltd hire the African Queen, a ship owned by the Japanese corporation Matsuda, to carry 40,000 tonnes of wheat grain from Le Havre in France to Luanda in Angola. The charterparty contains, inter alia, the following clauses:

(1) When the ship’s master issues bills of lading he is to be regarded as acting as agent of the charterer and it is therefore the charterer who shall be regarded as the carrier as against the holder of the bill of lading.
(2) The ship owner shall be under no liability whatsoever for any damage to the goods carried.

Corn Traders load 20,000 tonnes of grain in the vessel’s hold number 1 and 20,000 tonnes into hold number 2. The ship’s master issues Corn Traders with two of Matsuda’s standard form bills of lading which he signs without bothering to check the mate’s receipt. Each bill identifies 20,000 tonnes of wheat grain as having been "loaded aboard the African Queen in Le Havre in apparent good order and condition." The first bill refers to the grain in hold number 1 and the second bill refers to the grain in hold number 2. Each bill also states that: "The goods shall be delivered in Luanda to Corn Traders Ltd or to their order;" and that "All terms and conditions of the Matsuda – Corn Traders Ltd charterparty dated 15th February 2009 are incorporated into this bill of lading."

Before the vessel leaves Le Havre Corn Traders sell the 20,000 tonnes of the corn in hold number 1 to Angola Traders, a corporation registered in Angola, and they sell the other 20,000 tonnes to Anjou Supplies, a corporation registered in France. Both contracts are c.i.f. Luanda and Corn Traders indorse each bill of lading to the appropriate buyer in return for the full price. During the voyage Anjou Supplies sell 10,000 tonnes of the wheat in hold number 2 to Benfica Dealers, a corporation registered in Portugal. In return for the full price Anjou Supplies issue Benfica Dealers with a delivery order signed by one of their own authorised managers addressed to the master of the African Queen. It names Benfica Dealers as the party to whom 10,000 tonnes of wheat in hold number 2 must be delivered in Luanda.

On the arrival of the African Queen in Luanda it is discovered that the wheat in hold number 1 is mouldy. In fact this wheat had been mouldy on shipment, as had been noted by the ship’s mate in his loading receipt. It is also discovered that although the wheat in hold number two had been of satisfactory quality when shipped, seawater had entered the hold during the voyage rendering the contents worthless. The incursion of seawater was due to a rusting plate on the side of the vessel close to the water line.

On the assumption that English law applies advise Angola Traders, Anjou Supplies, and Benfica Dealers, ignoring any claims under the sale contracts.
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Old Apr 27th, 2009, 10:59 AM   #2
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Default Re: law of international trade

The rules here unfortunately do not normally permit us to do academic, homework or school-related projects or questions. There should be other articles on the Internet however.
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