Maritime Law: Contracts, Carriage and Liability
The contract of carriage
A candidate must understand the bill of lading as a receipt, a contract of carriage and a document of title, and the difference between a straight, order and bearer bill. Know the effect of a clean versus claused bill and the meaning of a letter of indemnity.
Hague-Visby and the carrier's duties
The core duties are to exercise due diligence to make the ship seaworthy, to care for the cargo, and not to deviate unreasonably. Know the package limitation, the one-year time bar and the exceptions available to the carrier.
Charterparties
Understand the difference between a voyage and a time charter, laytime and demurrage, off-hire, and the owner's and charterer's obligations. Know the significance of the notice of readiness and the statement of facts.
Salvage, general average and limitation
Know the principle of general average, the no-cure-no-pay nature of salvage under the standard form, and the right to limit liability. Understand the role of the average adjuster.
Traps
- Confusing the bill of lading's evidentiary function with its contractual function.
- Assuming a time bar can be ignored because negotiations are ongoing.
- Treating demurrage as damages rather than as an agreed rate.
- Forgetting that general average requires a sacrifice for the common safety.
Rule of thumb
When a claim is foreseeable, preserve evidence and put the other party on notice early. Time bars run from the date of delivery, not from the date the loss is discovered.