The Physical and Documentary Obligations of the Seller in Shipment Sales

Published: 2021-06-29 07:07:24
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Category: Philosophy

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1. The physical and documentary obligations of the seller in shipment sales

In shipment sales, the sellers do not guarantee the safe arrival of goods to the agreed port of discharge. They merely undertake:

(1) to ship contractual goods at the designated port of loading within the shipment period (but what happens where there is a string sale, how can a seller down the string ship the goods?).
String sale: seller a sells good to seller b, and the goods are damaged in this stage. Then b sells to seller c, and then sells to seller d. the seller d only has the contract with seller c, so d can only claim damage to c, not to a and b.
(2) to tender conforming documents to buyers (or to a bank where a L/C is in place) for payment.

If the seller makes the contract of carriage before the contract of sale, the goods are damaged. Should the buyer pay for it? Yes, the buyer should pay for damages. because it’s the function of the shipment.

2. Who makes the contract of carriage, the seller or the buyer?

The position is generally quite straightforward:

In case of CIF (and C&F) contracts: the seller

In case of FOB contracts: it depends on the type of FOB (see *Pyrene v. Scindia [1954] 2 QB 402)

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