Civil and Commercial Law
Civil and Commercial Law
This domain tests how a haulier’s commercial relationships are formed, performed and enforced. Expect contract formation, terms, agency, bailment, negligence, sale of goods and the liability regime for carriage, including CMR on international journeys.
Core rules
- A contract needs offer, acceptance, consideration and intention; written terms help but are not essential.
- A carrier is not an absolute insurer. Liability depends on the contract, statute and any convention. Under CMR, the carrier is liable for loss, damage or delay unless an exception applies; compensation is limited by weight (8.33 SDR per kg) and time limits are short.
- Bailment imposes a duty to take reasonable care of goods in possession.
- Exclusion clauses must be incorporated and, in business contracts, are subject to reasonableness controls.
- Privity means a sub-contractor is not automatically liable to the original customer; the contracting carrier remains responsible.
Worked example
A UK haulier contracts to move machine parts to France and sub-contracts the leg to a French carrier. The goods arrive damaged. The customer’s contract is with the UK haulier, so the customer claims against it. Because the journey is international, CMR probably governs liability and limits. The UK haulier may then pursue the sub-contractor under their own contract, but cannot simply tell the customer to claim directly.
Traps
Do not assume domestic sale-of-goods rules apply to an international CMR journey. Do not ignore CMR’s one-year limitation (three years for wilful misconduct). Do not treat a sub-contractor as a party to the customer’s contract. Do not rely on an exclusion clause without checking incorporation and reasonableness.