BUSINESS LAW

Business Law

Business Law

Statement of the Problem or Issue

The case shows a process of selling and buying between two countries. The case that is given for the purpose of this assignment deals with the area of business trade and shipment laws. The main problem that underlies in this case is that the transference of goods in this case takes place under the c.i.f agreement. The second problem that is the main issue of this case is that the carrier or the ship that is used for the transference of goods is a clean bill of lading shipper. The twist in this case is that seller and the management of the shipper forms an agreement. According to this agreement the Fireflight (the carrier) could call off at a port off the normal route in order for the carrier to take more cargo on board. Moreover, this agreement is not written in the bill of lading. When the buyer receives the goods he did not find the goods in appropriate conditions. Now this is a critical situation for Brede (buyer).

Statement of the Law

The given case deals with the issue of trade and shipment law, rules and regulations. The law deals with the three important factors of c.i.f, bill of lading and the agreement between the shipper and seller. This part describes the law related to all these three conditions. C.i.f stands for cost, insurance and freight. According to English law a c.i.f is a term that is used in the area of trade. According to c.i.f agreement it is the responsibility of the seller to arrange a shipper on which he can transfer the goods to the destined port. It also requires the seller to send important documentation to the buyers so that he can receive the shipment from the carrier (Michelle 2002, 121). After c.i.f there is clean bill of lading. According to English law in a clean bill of lading the management of the shipper or the carrier does not have the responsibility regarding the conditions of the goods that is to be transferred from one port to another. A clean bill is one that contains no notations by the carrier that indicate any visible damage to the goods, packages drums or other containers being loaded. Buyers should insist that all contracts and documentation must be sent to the buyers. A buyer who undertakes the process of buying goods through clean ...