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BBS 3rd year business law important Question | Unit 6 (Contract of Carriage)

 


CONTRACT OF CARRIAGE

👉🏻MEANING

In general, the term "carriage" refers to the act of transporting or carrying goods, or roughly speaking, people from one place to another by different means of carriage within the country or beyond. It is the act of transportation of goods as a business from one place to another by different means of carriage.

Carrier: The person who, as his business, carries the goods of others for consideration, generally either an individual or a company, is known as the carrier.

Contract of Carriage: The contract made between a carrier and the owner or consignor of goods for the carriage of goods from one place to another is known as a contract of carriage.

👉🏻 TYPES OF CARRIER

The kinds of carriers are as follows:

  1. On the basis of the nature of the carrier
    • Private carrier
    • Common carrier
  2. On the basis of reward, they receive
    • Gratuitous carrier
    • Non-gratuitous carrier
  3. On the basis of things they carry
    • Passenger carrier
    • Goods carrier
  4. On the basis of means of carriage
    • Land/Roadways carrier
    • Water/Seaways carrier
    • Airways carrier

👉🏻CARRIAGE OF GOODS BY LAND

Goods are carried by land either by a private carrier or by a common carrier.

Private Carrier: A private carrier is a carrier who carries the goods of others from one place to another, not as a regular business of carriage.

Common Carrier: A common carrier is a person, either an individual, a firm, or a company.

👉🏻CHARACTERISTICS OF A COMMON CARRIER

The following are the characteristics of a common carrier:

  1. It may be an individual, a firm, or a company, either private or public, but it is not a government carrier.
  2. Carrying goods is its regular business.
  3. It carries only the goods of the owner or consignor.
  4. It always carries the goods through a fixed, particular, or customary route.
  5. It carries goods without discrimination.
  6. It is a non-gratuitous carrier.

A common carrier carries goods from one place to another through a fixed or particular route. It is a landway carrier, playing an important role while moving goods from one place to another, as almost all goods are carried by land or roadways. It is the oldest form of carrier and still provides its service to the commercial world.

RIGHTS AND DUTIES OF A COMMON CARRIER

👉🏻Duties of a Common Carrier

  1. Duty not to discriminate
  2. Duty to carry goods with reasonable care, skill, and diligence
  3. Duty to carry and deliver goods within a reasonable time
  4. Duty to deliver goods to the receiver or consignee
  5. Duty to deliver goods at the fixed place
  6. Duty to pay compensation
  7. Duty to communicate in case of emergency
  8. Duty to insure the goods
  9. The first carrier is held responsible in case goods are carried through several means of carriage

👉🏻Rights of a Common Carrier

  1. Right to refuse goods from carrying them
  2. Right to receive remuneration
  3. Right to be indemnified
  4. Right to compensation
  5. Right to receive extra remuneration for extra work
  6. Right of lien

👉🏻Liabilities of a Common Carrier

Some liabilities of a common carrier are as follows:

  1. To be liable for compensation for the loss, damage, or destruction of goods, regardless of the reason
  2. To be liable to deliver goods to a proper place in proper condition
  3. To be liable to carry goods within a fixed or reasonable time
  4. To be liable to take proper care of goods during their custody

👉🏻Limitations of Common Carrier's Liability

  • Act of God
  • Inherent defects of goods
  • Exoneration by law from liability

👉🏻Termination of Common Carrier's Liability

  • When goods are delivered to the owner or his agent
  • When goods delivered to the common carrier are received by the owner, consignor, or his agent
  • When goods are returned to the owner, consignor, or his agent

👉🏻AFFREIGHTMENT CONTRACT

An affreightment contract is a contract in writing between the owner and master of a ship or shipping company and the owner or consignor of goods, whereby the owner or master of the ship or shipping company, for a price, promises to carry the goods of the owner or consignor from one port to another and deliver them to the receiver or consignee within the time mentioned in the contract.

TYPES OF AFFREIGHTMENT CONTRACT The contract of affreightment can be broadly classified into two divisions:

  1. Charter party
  2. Bill of lading

👉🏻CHARTER PARTY

A charter party is a contract in writing between the owner or master of a ship or the shipping company and the owner or consignor of goods, whereby some or a substantial part of the ship or the whole ship is hired. The owner or master of the ship or the shipping company promises to carry the goods of the owner or consignor from one port to another for a fixed price. A charter party contract may be of two types:

  1. Time charter
  2. Voyage charter

Further, the charter party, whether time or voyage charter, may be:

  1. Charter party with the demise
  2. A charter party without demise

👉🏻BILL OF LADING

A bill of lading can be characterized in two ways:

  1. It is a receipt of goods issued and authenticated by the owner or master of a ship or shipping company, delivered by the owner or consignor of goods for the purpose of carrying them.
  2. It is a contract entered into, in writing, between the owner or master of a ship or shipping company and the owner or consignor of goods, whereby the first party, by receiving a charge or fee, agrees to carry the goods of the owner without hiring space in the ship.

👉🏻CARRIAGE OF GOODS BY AIR

Law Applicable to Airways Services

  1. Warsaw Convention, 1929
  2. Hague Protocol, 1955

Documents of Carriage

  1. Passenger ticket
  2. Luggage ticket
  3. Air waybill

👉🏻INCOTERMS 2010

The Incoterms or International Commercial Terms are trade terms published by the International Chamber of Commerce (ICC), commonly used in both international and domestic trade contracts. The 



Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods.

Universal Incoterms

  • EXW-Ex Works (named place of loading)
  • FCA-Free Carrier (named place of delivery)
  • CPT-Carriage Paid To (named place of destination)
  • CIP-Carriage and Insurance Paid to (named place of destination)
  • DAT-Delivered at Terminal (named terminal at port or place of destination)
  • DAP-Delivered at Place (named place of destination)
  • DDP-Delivered Duty Paid (named place of destination)

Incoterms applying only to sea and inland waterway transport

  • FAS-Free Alongside Ship (named port of shipment)
  • FOB-Free on Board (named port of shipment)
  • CFR-Cost and Freight (named port of destination)
  • CIF-Cost, Insurance & Freight (named port of destination)

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