Principles of Law Relating to International Trade

Principles of Law

Relating to

International Trade

Principles of Law

Relating to International Trade

Ph.D. (Soton), LL.M. (Wales), C.P.E. (Bristol),

Pg-Cert. in E.U. Law, Pg.Dip. in Legal Practice,

Pg.Dip. in Shipping, M.C.I.T., M.LEx.

Solicitor of the Supreme Court, England & Wales

Solicitor-Member, Athens Bar Association (Greece)

Senior Lecturer, Southmnpton Solent University

Associate Law Lecturer, The Open University

Associate Law Lecturer, Southampton City College

Minister 's Adviser, The Ministry of Mercantile Marine (Greece)

Shipping Law Examiner, 7;cze Chartered Institute of Shipbrokers

International Trade Law Examiner, 7he Institute of Export

- Springer

Library of Congress Control Number: 2005936345

ISBN-10: 0-387-30386-3 e-ISBN 0-387-30699-4

ISBN-13: 978-0387-30386-4

Printed on acid-free paper

O 2006 Springer Science+Business Media, Inc.

All rights reserved. This work may not be translated or copied in whole or in part without the written

permission of the publisher (Springer Science+Business Media, Inc., 233 Spring Street, New York,

NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in

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The use in this publication of trade names, trademarks, service marks, and similar terms, even if they

are not identified as such, is not to be taken as an expression of opinion as to whether or not they are

subject to proprietary rights.

Printed in the United States of America.

Ny parents, Maria andSte&s, with gratitude

Ny wje, 'I/dik$ with he

Ny soq Stelws, math great e~ectatwm

THE CURRENT LEGAL SYSTEM

CONSTITUTIONAL LAW

THE LAW OF PROBATE AND SUCCESSION

CHAPTER 3

THE LAW OF TORTS

THE TORT OF CONVERSION

THE TORT OF NUISANCE

DEFAMATION

THE TORT OF NEGLIGENCE

VICARIOUS LIABILITY

GENERAL DEFENCES

CHAPTER 4

THE LAW OF CONTRACT

ELEMENTS OF CONTRACT

OTHER ELEMENTS

TERMS OF A CONTRACT

REMEDIES FOR BREACH OF CONTRACT

DISCHARGE OF CONTRACT

THE LAW GOVERNING A CONTRACT

CHAPTER 5

THE LAW OF AGENCY

CLASSIFICATION OF AGENTS

CREATION OF AGENCY

AUTHORITY

AGENCY OF NECESSITY

SUBSEQUENT AUTHORITY OR AGENCY BY RATIFICATION

DUTIES OF AN AGENT

RIGHTS OF AGENT

- viii -

RIGHTS OF THIRD PARTIES AGAINST PRINCIPAL AND AGENT

TERMINATION OF AGENCY

E. C . LAW AND AGENCY AGREEMENTS

CHAPTER 8

COMPETITION LAW

FREE MOVEMENT OF ODs IN THE E. C.

RESTRICTIVE TRADNG AGREEMENTS AND ~ATY OF ROME

CHAPTER 9

INTRODUCTION TO F.O.B. AND C.I.F. SALES

INCOTERMS

F.O.B. CONTRACTS

C.I.F. CONTRACTS

CHAPTER 10

EXPORT FINANCE

BILLS OF EXCHANGE & CHEQUES

CHEQUES

UNIFORM CUSTOMS & PRACTICE FOR DOCUMENTARY CREDITS

LETTERS OF CREDIT

OTHER MZTHODS OF PAYMENT

CHAPTER 11

INSURANCE LAW

LLOYD'S AND THE PI/IARKET

THE CONTRACT OF WSURANCE

THE INSURANCE POLICY

Ir\rsnm CARGO CLAUSES

AVIATION INSURANCE

BASIC SYSTEM OF LIABILITY

CARRIER'S DEFENCES

APPLICATION OF THE LEGAL REGIMES

CONSIDERATION

ELEMENTS OFSIMPLE CONTRACT

MISREPRESENTATION

MISTAKE

TERMS OF A CONTRACT

REMEDIES FOR BREACH OF CONTRACT

DISCHARGE OF CONTRACT

TRANSFER OF TITLE

FORM OF BILL OF EXCHANGE

THE COURTS 5

EXEMPTING SECTIONS 1 2- 1 5 OF THE SALE OF GOODS ACT 1 87

CONVENTIONS FOR THE CARRIAGE OF GOODS 295

21"' Century Logistic Solutions Ltd . (In Liquidation) v . Madysen Lt d.

[2004] 2 Lloyd's Rep.92 ...................................................................................... 89

A . Siohn & Company Ltd . andAcademy Garments (Wigan) Ltd . v . R . H .

Hagland & Son (Transport) Ltd . [I9761 2 Lloyd's Rep.428 ............................... 257

A.MB. Imballaggii Plastici S.R.L. v . Pacjlex Lt d. [1999] 2 AU E.R.

(Comm.) 249 .................................................................................................... 133

Adamastos Shipping Co . Lt d. v . Anglo-Saxon Petroleum Co . Ltd . [I9591

A.C. 133 .............................................................................................................. 98

Adams v . Lindsell (1818) 1 B.& Ald.681 ............................................................ 80

Adamson v . Jawis (1827) 130 E.R.693 ................................................................. 141

Agapitos v . Agnew (The Aegeon) (No . 1) [2002] 2 Lloyd's Rep.42, C.A. ................ 244

Alexander v . Rayson [I9361 1 K.B.169 .................................................................. 88

AlfiedMcAlpine Construction Ltd . v . Panatown Ltd . (No . 1) [2001]

A.C.518, H.L. ............................................................................................... 182

Allcard v . Skinner (1887) 36 Ch.D . 145 ................................................................... 90

Allen v . Jambo Holdings Ltd . [I9801 1 Q.L.R.1252 ........................................... 45

Aluminium Industrie Vaassen BV v . Romalpa Aluminium [I9761 1 Lloyd's

Rep.443 ....................................................................................................... 164

Amin Rasheed Shipping Corp . v . Kuwait Insurance Co . (The A1 Wahab)

[I9841 A.C.50, H.L. .......................................................................................... 123

Antoine Kortas, Case C-3 19/97, [I9991 3 C.M.L.R962, O.J. 1999 C 204,

17/07/1999 p.18 .................................................................................................. 19

Appleson v . Littlewood Ltd . [1939] 1 All E.R.464 ............................................... 83

Applied Implants Technology Ltd . v . LuJhansa Cargo AG [2000] 2

Lloyd's Rep.46 ................................................................................................. 291

Arcos Ltd . v . Ronassen [I9331 A.C.470, H.L ......................................................... 154

Argy Trading Development Co . Ltd . v . Lapid Developments Lt d. [I9771 1

W.L.R.444 .......................................................................................................... 82

Ariston SRL v . Charly Records Ltd., The Financial Times, 2 1 March, 1990 ........... 105

Armory v . Delamirie (1721) 1 Stra.505 ................................................................... 66

Armour v . Thyssen [I9901 3 All E.R.481 .............................................................. 166

Arsenal Football Club Plc v . Reed (No.2) [2003] 1 All E.R. 137 .............................. 13

Aruna Mills v . Dhanrajmal Gobindram [1%8] 1 Lloyd's Rep.304 ........................ 205

Ashington Piggeries v . Christopher Hill [ 19721 A.C.44 1, H.L. .............................. 154

Ashmore Benson Pease & Co . Ltd . v . AVDawson Ltd . 119731 2 Lloyd's

Rep.21, C.A ........................................................................................................ 88

Ashton v . Turner [I9811 Q.B. 137 ........................................................................... 72

Atari Corporation v . Electonic Boutique [I9781 1 All E.R. 1010, C.A. ................... 160

Atkinson v . Denby (1862) 7 H.& N.934 .............................................................. 89

Attorney General v . Blake [2000] 4 All E.R.268, H.L ........................................... 108

Attorney General's Reference (IVo.2 of 1983) 119841 A.C.456 ................................. 36

Attorney-General v . Newspaper Publishing plc . [I9871 3 All.E.R532 C.A .............. 12

Attorney-General v . Times Newspapers Ltd . [I9741 A.C.273 H.L ........................... 12

B . Liggeft (Liverpool) Ltd . v . Barclays Bank Ltd . 119281 1 K.B.48 ........................ 224

B.P. Exploration v . Hund (1983) 2 A.C.352 .......................................................... 118

Bainbridge v . Firmstone (1838) 8 A.& E.743 ...................................................... 81

Baldry v . Marshall 119251 1 K.B.260 ................................................................... 182

Bank Melli Iran v . Barclays Bank (Dominion Colonial & Overseas) [I9511

2 Lloyd's Rep.367 ............................................................................................ 228

Bank of England v . Vagliano Bros . [I8911 A.C. 107, H.L. ..................................... 215

Banks v . Goodfellow (1870) L.R.5 Q.B.549 ..................................................... 25

Bannerman v . White (1861) 10 C.B. N.S.844 ........................................................ 101

Banque de Undochine et de Suez S.A. v . J.H. Rayner (Mincing Lane) Ltd

[I9831 Q.B.711 ................................................................................................. 233

Barclays Bank Ltd . v . W.J. Simms Son and Cooke (Southern) Ltd . 119791 3

All E.R.522 ...................................................................................................... 225

Barnett v . Chelsea & Kensington Hospital Management Committee 119691

1 Q.B.428 ........................................................................................................... 70

Barrett McKenzie & Co . Ltd . v . Escada (UK) Ltd., [200 1) E . C . C.50 ..................... 150

Bartlett v . Sidney Marcus Ltd . [1%5] 2 All E.R.753 ............................................. 155

Barton v . County Natwest Ltd . The Times, 29 July, 1999 ......................................... 91

Beale v . Taylor 119671 3 All E.R.253 ................................................................... 153

Beard v . London General Omnibus Co . [I9001 2 Q.B.530 ...................................... 71

Belfast Ropework Co . Lt d. v . Bushell [I9181 1 K.B.2 10 ........................................ 257

Bell v . Lever Bros . Lt d. [I9321 A.C. 161 ............................................................. 9 94

Benaim & Co . v . Debono 119241 A.C.514 ............................................................. 124

Bence Graphics Ltd . v . Fasson U. K . Ltd . 119971 1 All E.R.979, C.A. .................... 178

Beswick v . Beswick [I9671 2 All E.R. 1 197 ............................................................ 181

Bettini v . Gve (1876) 1 Q.B.D.183 ................................................................... 101, 113

. xiv .

Beyene v . Irving Trust Co . Ltd . (1985) 762 Fed.Rep. 2d 4, U.S. Second

Circuit Court of Appeals ................................................................................... 234

Bigos v . Bousted [I95 11 1 All E.R.92 .................................................................... 88

Bird v . Jones (1845) 7 Q.B.742 ............................................................................. 64

Bird's Cigarette Manufacturing Co . Ltd . v . Rouse (1924) 19 L1 . L .

Rep.301 ............................................................................................................ 258

Bishop v . Plumley [I9911 1 W.L.R.582 ................................................................... 29

Bisset v . Wilkinson [I9271 A.C. 177 ........................................................................ 91

Black King Shipping Corp . v . Massie (The Litsion Pride) [I9851 1 Lloyd's

Rep.437 ............................................................................................................ 243

Blower v . Great Western Railway Co . (1872) L.R. 7 C.P.655 ................................ 258

Blyth v . Birmingham Waterworks Co . (1856) 11 Exch.781 ...................................... 33

Boardman v . Phipps [1967] 2 A.C.46 ................................................................... 141

Bolivia Republic v . Indemnity Mutual Marine Assurance Co . Ltd . (1 908)

99 L.T.394, K.B.D. ........................................................................................... 243

Bolton Partners v . Lambert (1889) 41 Ch.D.295 ................................................... 137

Bolton v . Mahadma [I9721 1 W.L.R. 1009 ............................................................ 110

Bond Worth Ltd.. Re . [I9801 Ch.228 ............................................................. .165, 166

Borden v . Timber Products Ltd [1981] Ch.25 ....................................................... 165

Boston Deep Sea Fishing and Ice Co . Lt d. v . Ansell (1888) 39 Ch.D.339 ................. 87

Bowmakers Ltd . v . Barnet Instruments Lt d. [I9451 K.B.65 ...................................... 89

Boys v . Chaplin [I9711 A.C.536 ........................................................................... 127

Brace v . Calder [I8951 2 Q.B.253 ....................................................................... 106

Bratty v . Attorney-General for Northern Ireland [ 19631 A.C.386 H.L. .................... 34

Brinkibon Ltd v . Stahag Stahl und Stahlwarenhandelsgesellschaj? mbH .

[I9831 2 A.C.34 .......................................................................................... 80, 124

British and Foreign Marine Insurance Co Ltd . v . Gaunt [192 11 2 A.C.4 1 .................. 249

British Bank of the Middle East v . Sun Life Assurance of Canada (U.K.)

Ltd [I9831 2 Lloyd's Rep.9 ............................................................................... 134

British Crane Hire Corporation Lt d. v . Ipswich Plant Hire Ltd [I9751

Q.B.303 .............................................................................................................. 99

British Road Services v . A . V. Crutchley Lt d. (1967) 1 W.L.R.835 ............................ 79

Brumark, Re [2001] B.C.C.259 ............................................................................. 167

Bundesverband der Anneimi ttel-Importeure EV and the Commission of

the European Communities v . Bayer AG (Joined Cases C-2/01 P and C￾3/01 P) [2004] E.T.M.R. 100 ECJ ...................................................................... 195

Bunge & Co v . Tradax England [I9751 2 Lloyd's Rep.235 .................................... 205

Bunge Corporation v . Tradax Export S.A. [I98 11 2 Lloyd's Rep . 1; [I98 11

1 W.L.R.711 .............................................................................................. 100, 102

Campbell v . Paddington Corporation [I9111 1 K.B.869 ......................................... 67

Car and Universal Finance Co . v . Caldwell [I9651 1 Q.B.525, C.A. .................... 170

Cargill U. K . Ltd . v . Continental U. K . Ltd . [I9891 2 Lloyd's Rep.290, C.A ..... .203, 205

Carlill v . Carbolic Smokeball Company [I8931 1 Q.B.256 ...................................... 76

Carlos Federspiel v . Twigg [I9571 1 Lloyd's Rep.240 .......................................... 161

Castle v . Playford (1872) 26 L.T.315 ................................................................... 157

Catlin v . Cyprus Finance Corp . (London) Ltd . [I9831 Q.B.759 ............................. 224

Cavendish-Woodhouse Ltd . v . Manley (1984) 148 J.P. 299 ................................... 154

Cehave NVV . Bremer Handels GmbH (The Hansa Nor4 [I9751 3 All

E.R.739 ............................................................................................................ 155

Cellulose Acetate Silk Co . Lt d. v . Widnes Foundry Ltd . [I9331 A.C.20 .................. 104

Central Newbury Car Auctions Ltd. v . Unity Finance Lt d. [I9571 1

Q.B.371 ............................................................................................................ 168

Central Property Trust Ltd . v . High Trees House Lt d. (19471 K.B. 130 .................... 82

Chaigley Farms Ltd. v . Crawford. Kay and Grayshire Ltd . [19%]

B.C.C.957 ......................................................................................................... 166

Chamberlain v . Young [I8931 2 Q.B.206. C.A. ..................................................... 215

Chandler v . Webster [I9041 1 K.B.493 ................................................................ 118

Channel Island Ferries Ltd. v . Sealink U.K. Ltd . [I9871 1 Lloyd's Rep.559

(Q.B.D. (Comm)) ............................................................................................. 115

Chapelton v . Barry Urban District Council [I9401 1 K.B.532 ............................... 180

Chappel & Co . Ltd . v . . Nestle Co Lt d. [I9601 A.C.87 .............................................. 82

Charter v . Sullivan [I9571 1 All E.R.809 .............................................................. 175

Cheese v . Lovejoy (1877) 2 P.D.25 1 .................................................................... 26

Cheikh Boutros Selim El-Khoury v . Ceylon Shipping Lines. Ltd., (The

Madeleine) 119671 2 Lloyd's Rep.224 ............................................................... 263

Chellew v . The Royal Commission on Sugar Supply [I9221 126 L.T. 103 ............... 260

Chic Fashions (West Wales) Ltd . v . Jone El9681 2 Q.B.299 .................................... 65

China-Pac@c SA v . Food Corp of India (The Winson) [I9821 kC . 939 ................ 137

Clark v . Lindsay (1903) 19 T.L.R.202 .................................................................. 117

Clay v . Yates (1856) 1 H.& N.73 ............................................................................ 89

Clegg v . Andersson [2003] 2 Lloyd's Rep.32, C.A ................................................ 155

Clough Mill Ltd. v . Martin [I9851 1 W.L.R. 11 1 .................................................... 164

Clutton v . George Attenborough & Son [I8971 A.C.90, H.L. ................................. 215

Cochrane v . Willis (1865) L.R 1 Ch.App.58 .......................................................... 96

Cockshott v . Bennet (1788) 2 T.R.763 ..................................................................... 88

Cole v . Turner (1704) 6 Mod . 149 ........................................................................... 64

Collen v . Wright (1857) 120 E.R.847 ............................................................. 144, 146

Comber v . Anderson (1808) 1 Camp.523 .......................................................... 134

Commercial Union Assurance Co . Lt d. v . Niger Co . Lt d. (1922) 13 L1 . L .

Rep.75, H.L. ..................................................................................................... 246

Commission v . Denmark (Case 302186). [I9881 E.C.R.4607 .................................. 191

Commission v . United Kingdom (Case 40182). [I9821 E.C.R.2793 ......................... 190

Compagnie Tunisienne de Navigation SA v . Compagnie dlArmement

Maritime SA [I9711 A.C.572. H.L. .................................................................... 125

Comptoir dxchat et de Vente du Boerenbond Belge SA v . Luis de Ridder

Limitada (The Julia) [I9491 A.C.293. H.L. .................................................... 2 10

Conegate Ltd v . Commissioners of Customs and Excise (Case 12 1/85).

[I9861 E.C.R.1007 ............................................................................................ 190

Consten SA . and Grundig-Verkaufs GmbH v . E . C . Commission (Cases 56

and 58/64), [I9661 E.C.R.299 ............................................................................ 196

Container Transpt International Inc . and Reliance Group

Inc . v . Oceanus Mutual Underwriting Association (Bermuda) Ltd . [I9841 1 Lloyd's Rep.476, C . A. ......................................................................... 242

Cope v . Sharpe (iVo.2) [I9121 1 K.B.496. C.A. ...................................................... 73

Couturier v . Hastie (1856) 5 H.L.Cas.673. ............................................................. 96

Cox v . Glue (1848) 5 C.B.533 ................................................................................ 65

Credit Industriel et Commercial v . China Merchants Bank [2002] 2 All

E.R. (Comm.) 427 ..................................................................................... .233. 234

Crehan v . Inntrepreneur Pub Co . CPC [2004] EWCA Civ . 637 ............................ 193

Cundy v . Lindsay (1878) 3 App.Case.459 ................................................... 95, 169

Curtice v . London City &Midland Bank Ltd . [I9081 1 K.B.293 ............................ 225

Curtis v . Chemical Cleaning and Dyeing Co . [195 11 1 K.B.805 ............................ 180

Customs & Excise Commissioners v . Hare [ 19961 2 All E.R.39 1 ............................. 86

Cutter v . Powell (1795) 6 Term R320 ..................................................... 110. 11 1. 1 12

Czarnzkow-Rionda Sugar Trading Inc . v . Standard Bank London Ltd . [I9991 2 Lloyd's Rep.187 .................................................................................. 230

Dakin v . Oxley (1864) 143 E.R.938 ...................................................................... 112

. xvii .