Legal Aspects of Shipping

LEGAL ASPECT OF SHIPPING
NOVEMBER 2019
1. (a) Outline six maxims of equity relied upon by courts in resolving disputes. (12 marks)
Maxims of Equity:
 Equity will not suffer a wrong to be without a remedy.
 Equity follows the law.
 Where equities are equal, the law will prevail.
 He who comes to equity must come with clean hands.
 Delay defeats equity.
 Equity imputes an intention to fulfill an obligation.
(b) Paul, an infant, borrowed money from Ben. Paul failed to repay the loan as agreed. Ben is
aggrieved and intends to sue Paul in a court of law. Explain the legal principles applicable in
this case. (8 marks)
Legal Principles for Infant's Debt:

 Contracts with infants are voidable at the option of the infant.
 The infant can ratify the contract upon reaching majority.
 An infant is liable for necessaries (goods and services suitable to the infant's condition in
life).
2. (a) In relation to the law of agency, outline six instances when an agent shall be held
personally liable to third parties. (12 marks)
Agent's Personal Liability:
 When the agent exceeds their authority.

 When the agent fails to disclose the principal.
 When the agent acts for an undisclosed or partially disclosed principal.
 When the agent makes a contract in their own name without indicating the
existence of a principal.
 When the agent acts for an incompetent principal.
 When the agent acts without authority but later ratifies the act.
3. (a) Explain four remedies available to an aggrieved party in respect to trespass to land. (8
marks)
Remedies for Trespass to Land:
 Ejectment: Physically removing the trespasser.

 Damages: Financial compensation for the harm caused.
 Injunction: Court order to stop the trespass.
 Self-help: Using reasonable force to remove the trespasser.
(b) Outline the criteria for fixing the reward for salvage of a vessel, under the Lloyd’s open
forms contract. (12 marks)
1. Peril: Degree of risk to the vessel, cargo, and crew.
2. Services: Nature and extent of salvors' efforts.
3. Value: Value of vessel, cargo, and potential environmental damage.
4. Success: Degree of success in saving the vessel, cargo, and crew.
5. Skill: Skill and expertise demonstrated by salvors.
6. Promptness: Promptness of salvage services.
7. Expenses: Expenses incurred by salvors.
8. Risk: Risk assumed by salvors.
9. Environmental Impact: Potential environmental impact and mitigation efforts.
10. Other Circumstances: Any other relevant factors affecting the salvage operation.
4. (a) Under the international conventions affecting ship arrest, outline six instances where
the courts of the country in which the arrest for a ship is made, shall have jurisdiction to
determine the case. (12 marks)
Ship Arrest Jurisdiction:
 In cases of maritime claims.
 When the claimant has a valid claim against the owner or demise charterer.
 When the claim is related to ownership or possession of the vessel.
 When the claim arises out of salvage operations.
(b) Bills of lading may take various forms. Explain four such forms. (8 marks)
Forms of Bills of Lading:
 Order bills of lading.
 Straight (or direct) bills of lading.
 Bearer bills of lading.
 Shipped bills of lading.
5. (a) Simon sold some goods to Kadogo and shipment was to be made by 31st January.
However, the shipper shipped the goods on 4th February and forged the date on the bill
of lading to show shipment in January. Kadogo received the documents, and unaware of
the forgery, made payment. Before the goods arrived, Kadogo discovered the forgery but
still went ahead and took delivery of the goods upon their arrival. However, the. market
price had fallen within the period that shipment delayed and Kadogo suffered loss.
Kadogo is aggrieved and intends to sue Simon for the loss he has suffered. Explain the
legal principles applicable in this case. (10 marks)
Legal Principles for Kadogo's Case:
 Fraudulent misrepresentation by the shipper.

 Mistake by Kadogo.
 Kadogo's duty to mitigate damages.
 Kadogo's acceptance of the goods with knowledge of the forgery may affect his
claim.
(b) Under the rules governing collision in ships, explain the damages which are recoverable
by one party from the party at fault. (10 marks)
Recoverable Damages in Collision Cases:
 Damage to the ship or cargo.
 Loss of profits.
 Salvage expenses.
 General average contributions.

6. (a) Under the principle of contribution, an insurer is only entitled to contribution if
certain conditions exist. Highlight five such conditions. (10 marks)
Conditions for Contribution by Insurer:
 The insured must have multiple insurance policies covering the same risk.
 The policies must be on the same subject matter.
 The policies must be for the same interest.
 The policies must be in the same property or adventure.
 The policies must be in the same event.
(b) Outline five circumstances under which the provisions of Humburg rules are applicable to
contracts of carriage by sea, between two different states. (10 marks)
Applicability of Humburg Rules:
 When the contract of carriage is between two different states.
 When the contract incorporates the Humburg Rules by reference.
 When the parties explicitly agree to be bound by the Humburg Rules.
7. (a) Outline five reasons that may make parties to a commercial dispute prefer arbitration
to regular courts to resolve their dispute. (10 marks)
Reasons for Arbitration:
 Confidentiality.
 Expertise of arbitrators.
 Flexibility in procedure.
 Speedier resolution.
 International enforcement of arbitral awards.
(b) Certain claims against the owner, demise, charterer, manager or operator of a vessel shall
be secured by a maritime lien on the vessel. Outline five such claims. (10 marks)
Claims Secured by Maritime Lien:
 Claims for wages and other sums due to the master, officers, and other members of the
vessel's complement.
 Claims for damage caused by the vessel.
 Claims for salvage.
 Claims for port, canal, and other waterway dues and pilotage dues.

Legal Aspects of Shipping

Uploaded by

Copyright:

Available Formats

Legal Aspects of Shipping

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Legal Aspects of Shipping

Uploaded by

Copyright:

Available Formats

LEGAL ASPECT OF SHIPPING

Legal Principles for Infant's Debt:

 When the agent exceeds their authority.

Remedies for Trespass to Land:

 Ejectment: Physically removing the trespasser.

1. Peril: Degree of risk to the vessel, cargo, and crew.

2. Services: Nature and extent of salvors' efforts.

3. Value: Value of vessel, cargo, and potential environmental damage.

4. Success: Degree of success in saving the vessel, cargo, and crew.

5. Skill: Skill and expertise demonstrated by salvors.

6. Promptness: Promptness of salvage services.

7. Expenses: Expenses incurred by salvors.

8. Risk: Risk assumed by salvors.

9. Environmental Impact: Potential environmental impact and mitigation efforts.

 Order bills of lading.

 Straight (or direct) bills of lading.

 Bearer bills of lading.

 Shipped bills of lading.

 Fraudulent misrepresentation by the shipper.

Recoverable Damages in Collision Cases:

 Damage to the ship or cargo.

 General average contributions.

Applicability of Humburg Rules:

 When the contract of carriage is between two different states.

 When the contract incorporates the Humburg Rules by reference.

 When the parties explicitly agree to be bound by the Humburg Rules.

Claims Secured by Maritime Lien:

You might also like