Q5.

Seller in San Francisco agreed to ship goods to Buyer in London under a "CIF San Francisco (Incoterms 2020)" contract. After the goods were loaded aboard the ship, but before it departed from San Francisco, Seller tendered the documents required by the contract to Buyer and asked to be paid. Buyer refused, asserting that Buyer had a right to inspect the goods upon their arrival in London, and that Buyer did not have to pay until Buyer did so and was satisfied that the goods were in compliance with the contract. Seller sues for immediate payment. Will Seller win?

Q6.

Seller in Bombay sells 5,000 bales of cotton to Buyer "CFR Liverpool (Incoterms 2020)". Seller transports the cotton to the Bombay harbour and to the ship designated by Buyer, the SS Allthumbs. Due to an error in counting, only 4,987 bales were loaded. The ship's bill of lading, however, shows a quantity of 5,000 bales. Seller then negotiates the bill of lading to Buyer in exchange for payment in full for the cotton. When the Allthumbs arrives in Liverpool, the quantity error is discovered, and Buyer sues the ship for the lost value of the missing bales. Is the ship liable? Would it matter if Seller admitted that the error was not the ship's fault, but that of Seller?

Q7

Mr Ess, the owner of the SS Skimpy and an American citizen, borrows money from MultiBank in London to outfit his ship, giving the bank a maritime lien. Mr Ess sells the Skimpy to Mr Tee, a Canadian. Mr Tee is unaware of the lien and unaware that Mr Ess has defaulted on the loan. When the ship pulls into a British port, MultiBank arranges for the ship to be arrested and sold to pay off the balance due on the loan. Can MultiBank operate it?