Commercial law Essay Example | Topics and Well Written Essays - 2000 words - 5

Commercial law - Essay Example On the other hand, a Cost, Insurance and Freight (CIF) contract refers to an agreement of selling shipped goods at a price inclusive of the total cost of the goods, freight to the port destination and the maritime insurance coverage. One of the major essential features of CIF contracts is that it requires the vendor to ship the agreed goods in the contract, procure a bill of lading (contract of carriage), arrange for the insurance of the goods, and make a commercial invoice before finally tendering the documents to the buyer1. For example, in the case Biddle Brothers v Clemens Horst Co.2, it was ruled that the buyer was obliged to make the payments before the shipment of goods. This paper offers advice to the parties involved in the case namely, Bernadette, David and Barkers Bank with particular focus to their obligations, limitations and potential remedies in the event that a breach of the contract occurs. Based on the circumstances facing Bernadette in the presented case, the major challenge that arises is whether under the English commercial laws, Bernadette would be able to recover the money she paid for the documents from Arthur, claim the insurance policy or take legal action against the carrier in tort compensation for the damaged goods since she had already made the contract payments. Bernadette is obliged by the law to pay Mr. Arthur (the seller) even if the rice was destroyed during shipment. This can particularly be seen in the case Manbre Saccharine Co Ltd v Corn Products Co Ltd[3]Â  in which the court ruled that that the seller may still claim payment even if the goods are lost or destroyed after shipment. In my opinion, the only available remedy subject the English commercial laws is to sue Claude’s vessel Jeanne d’Arc carrier for compensation of the loss incurred due to the damage of rice during the