Jim of London bought five tons of olive oil from Costa of Crete- Greece, CIF Port of Crete to Port of London. Costa presented Jim with a Bill of Lading including a contract of carriage, a policy of insurance and an invoice for the goods. Jim inspected the documents, which were in order and showed that a consignment of 5 tons of olive oil had been appropriated to the contract. Jim then accepted the documents and paid the full contract price.

(a)When the goods were unloaded in London Jim discovered that they did not match the contract description, as the oil was groundnut oil rather than olive oil. The price of olive oil has increased significantly since the time of the contract.Advise the parties of their respective rights and liabilities.

(b)If Jim had become aware that the goods had been lost at sea, before he took and paid for the documents, would he have been entitled to refuse to take the documents and refuse to pay for them?