QUESTION 3 - Choice of Law

C Company is a transport company incorporated and headquartered in South Korea and has entered a transport contract with D Company, a company incorporated and headquartered and incorporated in Japan.Under the contract, C Company was to transport goods for D Company from Japan to Brazil.No terms were included in the contract about where legal disputes would be settled or which law would be used to resolve them.

As C Company's ship transporting the goods from Japan was entering the harbour of a port in Brazil, the ship caught fire and all of D Company's goods on board were destroyed.

D Company brings a legal action in Japan but C Company argues that Japanese Courts do not have jurisdiction and that Japanese law should not be applied to decide the legal dispute.

(a) Does the Japanese Court have jurisdiction? (1 mark) (b) Which law should the Court apply to decide the legal dispute?(4 marks)