We are very sorry to hear about the accidents in relation to the two separate consignments. I will hereby explain below how both accidents will affect the contracts between Floidex and Zinta.
Consignment 1
As Floidex and Zinta has agreed for the consignment to be shipped CIF Mumbai Incoterms 2010, Floidex obligations would be fulfilled after it has duly delivered the consignment to the UK port, cleared through customs and loaded onto the ship as agreed in their contract. However, Floidex is expected to have paid for the cost to get the goods loaded onto the ship, to pay for the freight necessary to take the consignment to Mumbai and expected to have arranged and pay for insurance under which Zinta can claim in such an incident for loss or damage …show more content…
The bill of exchange is a 60 day term unconditional written order which Floidex's bank has accepted. Floidex's bank is an agent to the issuing bank, hence guaranteed payment on the due date. The accident should have no effect on the payment of this consignment as the obligation to pay Floidex at this stage lies on the issuing bank and not on Zinta, Floidex should be able to receive payment of this consignment regardless Zinta pay or not. The issuing bank will acknowledge the bill of exchange and recover the money from Zinta. Zinta as the holder of the bill of lading has the contractual rights against the carrier under the contract of carriage. It also has the rights against the insurer under the terms of policy of which Floidex procured. The bill of exchange will be mature at the end of 60 days and Floidex can present it to its bank for …show more content…
Under the parties agreement the risk in the goods passes with delivery as explained above, when Floidex gets the goods on board of the ship in Liverpool.
For this consignment, the only commercial document that will be available to Floidex will be the commercial invoice. The commercial invoice lists and described the goods as the parties contracted. The bill of lading is only given by the carrier of the goods if the consignment were successfully loaded on board.
On the incident of consignment 2, Floidex is not entitled to be paid by Zinta as Floidex did not fulfil its obligation on the contract. As the FOB agreement only requires an optional insurance to be taken by Zinta, we are not sure if Floidex has insurance in place to cover this damage and any potential breach of contract litigation from Zinta.
We will advise Floidex to take practical steps in remedy the damage as soon as possible to protect its contractual relationship with Zinta and to avoid being sued for a breach of contract. Firstly, if Floidex has enough goods in stock, it will be an advantage as it can quickly re-arrange for a redelivery of the goods on to the ship within three days
Consignment 1
As Floidex and Zinta has agreed for the consignment to be shipped CIF Mumbai Incoterms 2010, Floidex obligations would be fulfilled after it has duly delivered the consignment to the UK port, cleared through customs and loaded onto the ship as agreed in their contract. However, Floidex is expected to have paid for the cost to get the goods loaded onto the ship, to pay for the freight necessary to take the consignment to Mumbai and expected to have arranged and pay for insurance under which Zinta can claim in such an incident for loss or damage …show more content…
The bill of exchange is a 60 day term unconditional written order which Floidex's bank has accepted. Floidex's bank is an agent to the issuing bank, hence guaranteed payment on the due date. The accident should have no effect on the payment of this consignment as the obligation to pay Floidex at this stage lies on the issuing bank and not on Zinta, Floidex should be able to receive payment of this consignment regardless Zinta pay or not. The issuing bank will acknowledge the bill of exchange and recover the money from Zinta. Zinta as the holder of the bill of lading has the contractual rights against the carrier under the contract of carriage. It also has the rights against the insurer under the terms of policy of which Floidex procured. The bill of exchange will be mature at the end of 60 days and Floidex can present it to its bank for …show more content…
Under the parties agreement the risk in the goods passes with delivery as explained above, when Floidex gets the goods on board of the ship in Liverpool.
For this consignment, the only commercial document that will be available to Floidex will be the commercial invoice. The commercial invoice lists and described the goods as the parties contracted. The bill of lading is only given by the carrier of the goods if the consignment were successfully loaded on board.
On the incident of consignment 2, Floidex is not entitled to be paid by Zinta as Floidex did not fulfil its obligation on the contract. As the FOB agreement only requires an optional insurance to be taken by Zinta, we are not sure if Floidex has insurance in place to cover this damage and any potential breach of contract litigation from Zinta.
We will advise Floidex to take practical steps in remedy the damage as soon as possible to protect its contractual relationship with Zinta and to avoid being sued for a breach of contract. Firstly, if Floidex has enough goods in stock, it will be an advantage as it can quickly re-arrange for a redelivery of the goods on to the ship within three days