For Your Data Comptoir D'achat Et De Vente Du Boerenbond Belge S/A V. Luis De Ridder Limitada (The Julia) Representative Brief

The Julia example brief summary

Facts: Seller, Luis De Ridder, loads 1,120 tons of grain/rye onto a ship, the Julia, to send to Belgium. The carrier gives the seller (Luis De Ridder) a negotiable neb of lading made out to Belgian Grain, who is the seller’s agent inward Belgium. While the send is en route, seller contracted to sell 500 tons of the rye to Boerenbond Belge (buyer): 500 tons of rye for $5000, CIF Antwerp, Payment against documents. Seller does non give buyer a neb of lading, because he wants to dissever upwardly the goods that are listed on the neb of lading too sell to multiple buyers too if he hands over a neb of lading that would travel essentially selling all of the goods. Instead, seller gives belgian, his agent, a delivery order, too it is the responsibleness of the agent to bargain alongside the buyers. Along alongside the delivery guild at that topographic point are 2 dissimilar insurance certificates, 1 was for marine risks too 1 for country of war risks. Seller has possession of the insurance certificates too his agent, belgian, has the delivery order. All of these documents (i.e. insurance certificates too delivery order) are delivered to Van Bree who is the seller’s cargo superintendent. Van Bree is required to stamp/endorse the order, making a annotation that acknowledges obligation of delivery to the buyer. Van Bree delivers the delivery order, provisional invoice (the bill), too 2 insurance certificates to the seller’s agent (i.e. Belgian Grain) because Van Bree is non authorized to bargain alongside the buyer. Buyer accepts the documents: the delivery order, provisional invoice, too 2 insurance certificates (but no neb of lading because the seller needs to hang on to the neb of lading nether the circumstances of this case).

 

WHAT WAS SUPPOSED TO HAPPEN?:

1) Shipment arrives at port

2) Buyer hands over the delivery guild addition a banking enterprise gibe for freight accuse to its ain cargo agent (Carga)

3) Carga gives the banking enterprise gibe for the freight charges too the delivery guild to the seller’s sales agent (Belgian Grain)

4) Belgian Grain notes that the freight charges own got been paid too hands the delivery guild to the seller’s cargo superintendent (Van Bree)

5) Van Bree issues an guild to its workers to liberate the goods (lasissez suivre) to the buyer.

 

But the goods are yet on board the send so...

 

*6) Van Bree gives the neb of lading to the ship’s captain.

*7) Ship’s captain gives the (laissez suivre) guild to liberate the goods.

            *Two telephone commutation elements of this transaction

WHAT ACTUALLY HAPPENED?:

-There is country of war inward Europe, so the rye is diverted to Lisbon, Portugal instead too sold at a loss (sold at a loss because Lisbon was 1 of few ports opened upwardly inward Europe, so it is probable that others were dumping their rye off at that topographic point equally well.)

-Buyer has the alternative to try remedy through insurance, but the buyer wants a refund of the total purchase price.

 

Issue: Can the buyer recover the purchase cost inward a CIF K?

 

Holding: This is a CIF K. Therefore, since the sellers own got delivered the documents, the buyer cannot recover the purchase price. In a CIF contract, the seller cannot deliver whatsoever goods that it wants, at that topographic point must travel “transfer of title” (i.e. document that gives championship to the goods). In this case, the neb of lading was nonnegotiable, thence non-transferable. It would own got to travel negotiable inward guild to travel transferable. Lack of goods (i.e. proper documents) caused a lack of consideration. Here, the buyers alone received the delivery guild (i.e. business office performance; preliminary steps, without whatsoever legal significance), which was alone a part of the neb of lading.

 

Reasoning:

-Must expect at the parties intent equally to what they wanted the documents to mean. Cannot merely expect at the words “CIF” too know what the parties intended, it must own got the essential characteristics of a CIF.

-Delivery guild gives you lot rights against the seller (and his agents) but non against other parties. Must own got a negotiable neb of lading to give the buyer rights against everyone (i.e. alienability or fully transferable rights)

-If parties expressly care inward writing that a delivery guild was intended to travel a document of championship too so it tin travel viewed equally a document of championship past times the courts. 

 

            Requirements of intending a delivery guild to travel a document of title: a) seller writes:  “whoever has delivery guild has legal rights to the goods” too b) it is a sale betwixt             sophisticated merchants.)

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