In February 2011, Sterling Industries PLC, an English company, agreed to sell to True Blue Pty Ltd, an Australian company, an airfield fire truck valued at $AUS 150,000 on FOB (London) terms. However, when the truck was being loaded onto the cargo ship something went wrong. The truck was loaded onto a barge in the Port of London for transport to the cargo ship, but as the barge came alongside the cargo ship, a mighty wave tossed it, throwing the fire truck into the water. Sterling argues that it has performed its obligation and should be paid.

1. a)Advise True Blue whether Sterling has performed its obligations under the Incoterm included in the contract and is entitled to payment.
2. b)Would your advice in (a) be different if the Incoterm in the contract was CFR (Melbourne)?
3. c)How would your advice change if the incoterm was FOB, but with these facts changed: The ship was berthed alongside the wharf and as the truck was driven onto the ship, the ship suddenly lurched away from the wharf on an angle tipping the truck from the ship into the water?
4. d)Would your answer to (c) be different if the contract was FAS (London)?