Summative assessment on the Law of International Trade
LL6011
Please provide an answer to the questions i-v below, supporting it with reference to case law and other necessary primary and secondary sources. Word limit: 2500-3000 words
On 23 January 2019 “Barney Ltd” contracted to purchase from “Sally Ltd” 30,000 mt (5% more or less) of Greek organic extra virgin olive oil, max. moisture 0.25%, on CIF terms. The agreed price was USD 30,000 per mt. The contract contained the following clauses:
DESCRIPTION: Greek organic extra virgin olive oil
QUANTITY: 30,000 mt (5% more or less)
QUALITY: Max. Moisture 0.25% Moisture and weight shall be final and binding on both parties at time and place of shipment as per certificate issued by a first class independent SGS Surveyor at sellers’ option… sample shall be taken alongside vessel”.
TIME OF SHIPMENT: 10-12 February 2019
PLACE OF SHIPMENT: Piraeus (Greece)
APPLICABLE LAW AND JURISDICTION: English
The goods were placed on board the vessel “THE MARILISA” on 8 February 2019 in Mytilini, Lesvos (a Greek island) and a full set of bills of lading was issued dated 11 February 2019 (Yiannis, the master of “THE MARILISA” accepted to falsely date the bills of lading after he received a letter of indemnity). The bills contained the following statement: “Said to be 30,332.224 mt of organic Greek olive oil. Shipped on board in apparent good order and condition. Oil unusually thick and cloudy/unusual pale straw colour”.
On 27 February 2019, Barney receives the full set of bills of lading dated 11 February 2019 together with SGS Surveyor certificate showing moisture 0.3% and Commercial Invoices stating “virgin olive oil-Greek/Spanish origin.”
On 1 March 2019 the vessel “THE MARILISA” arrived at Southampton.
Answer ALL questions (i- v)
- When Barney receives the documents, he wants to reject them. Can he reject and on what grounds?
- Consider the following variation to the scenario:
According to the sale contract, payment will take place through an irrevocable letter of credit to which the UCP 600 apply. The credit opened asks for the following documents:
Full set of original clean on board bills of lading;
Quality certificate in one original and four copies issued by concerned governmental authorities in exporter’s country……
Manually signed commercial invoice for 30,000 mt (5% more or less) of Greek organic extra virgin olive oil.
Shipment by 7 February.
The oil is shipped on board the vessel on 12 February 2019. Sally tenders the documents to the confirming bank which rejects them due to the following specific discrepancy: that the bill of lading is dated 12 February 2019. Sally would like to sue the confirming bank. Advise Sally, considering all the specific legal issues that arise.
- Consider the scenario above with the following variation: after Sally presents the documents to the confirming bank, including a bill of lading dated 10 February 2019, she receives a notice of rejection from the confirming bank containing the following statement “Due to discrepancies between the documents tendered and the letter of credit, we (the confirming bank) will not honour the credit.” Although 18 days have passed after this notice was sent to Sally, the confirming bank is still in possession of the documents. Advise Sally.
- Consider the following variation: the bill of lading describes the cargo as “Greek oil”, and the commercial invoice as “Greek virgin olive oil”. The confirming bank refuses to pay Sally. Advise Sally.
- Consider another variation: the quality certificate tendered by Sally confirms moisture of 0.259%. Advise Sally as to whether she will be paid by the confirming bank.
