Question
Mac's Machines Ltd, an importer of high-tech German industrial equipment, had an ongoing shipping arrange- ment with Take Care Tankers Inc. According to Clause 4
Mac's Machines Ltd, an importer of high-tech German industrial equipment, had an ongoing shipping arrange- ment with Take Care Tankers Inc. According to Clause 4 of Take Care Tankers' standard form agreement:
Subject to express instructions in writing given by the customer, Take Care Tankers reserves to itself complete freedom in respect of means, routes, and procedures to be followed in the handling and trans- portation of the goods.
Although the parties had done business before on several occasions, a representative from Mac's telephoned Take Care Tankers to request that a particular shipment of machines be stored below deck. Although the machines were usually transported in waterproof plastic containers that were amenable to deck transportation, the shipment in question was packaged in wooden crates and was therefore susceptible to rust if left on deck. The shipping manager at Take Care Tankers assured the Mac's representative over the phone that the special arrangement would be no problem. Despite that promise, the shipment was inadvertently stored on deck. During the voyage, the crate fell overboard, and the machines were lost at sea. On the basis of the telephone call, Mac's claims that Take Care Tankers was not merely negli- gent but also in breach of contract. Relying on Clause 4 of its standard form agreement, Take Care Tankers claims that the oral assurances made over the telephone were not part of the contract. Leaving aside the issue of negligence, apply your understanding of the parol evidence rule to determine how a court would resolve the contract issue in this case.
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