A Toronto based freight forwarding company Moving Towards Atlantic Limited has signed a contract with New Brunswick based Irvings Oils & Gas Incorporation to move bulk of steel and iron coils imported from Jamshedpur to their factory based in Saint John.

The terms and conditions stipulates that the freight forwarder will be responsible for arranging the transportation of the materials from the manufacturing facilities of the exporter to the Mundra Port in Kutch District via railways under a concessional fee arrangement with the Rail authorities as the freight forwarder is redeeming its GST and tax rebates credited to its Indian subsidiary company. The rate mentioned under the contract for this long railway route was a concessional rail cargo fee of $675 per tonne of the iron and steels coils.

Both the parties to the contract fulfilled their underlying commitments duly and contract was executed well in time.

Meanwhile purchasing and logistics manager of Irvings Oil and Gas Inc Mr Travis recommended services of Moving Towards Atlantic Limited to one of their suppliers energy company Lambert Oils Limited based in Calgary, Alberta. Lambert signed the contract with the same freight forwarder under the impression that they will also avail the same concessional rail cargo fee, however the actual cargo transport fee they noticed in their invoice was $1,000 per tonne.

This makes a contract violation for Lambert and they sued the forwarder company claiming the compensation of $325,000 for one thousand tonnes of the cargo they transported from the exporters manufacturing premises to the seaport.

Answer the given all given question

Questions 5

Under the STC, Moving Towards Atlantic Limited has to arrange for the insurance which they duly managed an open marine cargo policy with Axa Insurance Inc. and provided the insurance declaration to the client. Axa has charged a premium of $75,000 but the forwarder has charged to Lambert Oils Limited $79,000.

Later on it was noticed that a container got leakage and sea storm water damaged the materials causing it heavy junk. Forwarder has notified to the client within a week of the arrival of the cargo, but when Lambert claimed the damage from the insurer, it was observed that the insurance coverage was not enough.

Lambert also raised objections to the extra amount charged by the forwarder. Following this Lambert claimed the unsettled damage amount from the forwarder along with the additional premium of $4,000.

Is Lamberts claim genuine and legally justified. If yes, how much amount they can claim on this account?

6

Following from Question 5, will the situation be different if Moving Towards Atlantic Limited did not notify the Lambert Oils Limited within a week. The shipment arrived in Canada on 28st August, 2022, then the forwarder should have notified to the client before which date?

(A) 28st August, 2022

(B) 29th August, 2022

(C) 31st August, 2022

(D) 4th September, 2022

(E) 6th September, 2022

(F) 8th September, 2022

(G) 30th September, 2022

A company ONGC Incorporation appoints a forwarding company to handle goods to be transported from New York to Whitehorse, Yukon that are of dangerous, inflammable, radioactive, hazardous or damaging nature, without declaring it.

In this situation what are the options available to the forwarding company?