Question
Read the premise under the case in hand in conjunction with standard trading conditions and answer the pertinent questions using your comprehension, text and resources
Read the premise under the case in hand in conjunction with standard trading conditions and answer the pertinent questions using your comprehension, text and resources and conclude some key points arising out of the agreements and contracts under freight forwarding business from legal point of view. A Toronto based freight forwarding company Moving Towards Atlantic Limited has signed a contract with New Brunswick based Irvings Oils & Gas Incorporation to move bulk of steel and iron coils imported from Jamshedpur to their factory based in Saint John. The terms and conditions stipulates that the freight forwarder will be responsible for arranging the transportation of the materials from the manufacturing facilities of the exporter to the Mundra Port in Kutch District via railways under a concessional fee arrangement with the Rail authorities as the freight forwarder is redeeming its GST and tax rebates credited to its Indian subsidiary company. The rate mentioned under the contract for this long railway route was a concessional rail cargo fee of $675 per tonne of the iron and steels coils. Both the parties to the contract fulfilled their underlying commitments duly and contract was executed well in time. Meanwhile purchasing and logistics manager of Irvings Oil and Gas Inc Mr Travis recommended services of Moving Towards Atlantic Limited to one of their suppliers energy company Lambert Oils Limited based in Calgary, Alberta. Lambert signed the contract with the same freight forwarder under the impression that they will also avail the same concessional rail cargo fee, however the actual cargo transport fee they noticed in their invoice was $1,000 per tonne. This makes a contract violation for Lambert and they sued the forwarder company claiming the compensation of $325,000 for one thousand tonnes of the cargo they transported from the exporters manufacturing premises to the seaport.
Questions 1 Citing the applicable STC clauses, clarify your understanding of the situation and mention clearly whether the suit is admissible and tenable under the law? (Not more than 100 words).
Questions 2 Continuing from the case in hand, Lambert Oils Limited also claimed back the customary allowances, profits on foreign exchange paid by the carrier and third parties to the Moving Towards Atlantic Limited. Will they succeed in claiming it back from the freight forwarder? Describe in brief citing the applicable clause (Not more than 50 words).
Questions 3 As the case is sub judice, some bulk of materials worth $125,000 is still under the general and particular lien of the forwarder, which they intend to sale via an auction to recover its costs and expenses. On 15th September, 2022 Moving Towards Atlantic Limited served the notice of its right to Lambert Oils Limited by Canada Post and also via on the official email of the legal department of the Lambert Oils. When at the earliest Moving Towards Atlantic can sale the materials? (Just mention the date in 3 words).
Questions 4 The forwarder, Moving Towards Atlantic Limited has recovered $113,500 via a private sale of the material under dispute, which was worth $125,000 as per commercial invoice. Assuming the amount under litigation to be $150,000, for which they served another notice to the Lambert Oils Limited, is Lambert Oils Limited still liable to pay the amount to the Moving Towards Atlantic. If yes, how much? (A) No, as the forwarder choose to sale the material to recover the dues. (B) No, as the forwarder did not wait for the outcome of the court verdict. (C) Yes, $150,000 (D) Yes, $125,000 (E) Yes, $113,500 (F) Yes, $36,500 (G) Yes, $25,000 (I) Yes, $11,500
Questions 5 Under the STC, Moving Towards Atlantic Limited has to arrange for the insurance which they duly managed an open marine cargo policy with Axa Insurance Inc. and provided the insurance declaration to the client. Axa has charged a premium of $75,000 but the forwarder has charged to Lambert Oils Limited $79,000. Later on it was noticed that a container got leakage and sea storm water damaged the materials causing it heavy junk. Forwarder has notified to the client within a week of the arrival of the cargo, but when Lambert claimed the damage from the insurer, it was observed that the insurance coverage was not enough. Lambert also raised objections to the extra amount charged by the forwarder. Following this Lambert claimed the unsettled damage amount from the forwarder along with the additional premium of $4,000. Is Lamberts claim genuine and legally justified. If yes, how much amount they can claim on this account?
Questions 6 Following from Question 5, will the situation be different if Moving Towards Atlantic Limited did not notify the Lambert Oils Limited within a week. The shipment arrived in Canada on 28st August, 2022, then the forwarder should have notified to the client before which date? (A) 28st August, 2022 (B) 29th August, 2022 (C) 31st August, 2022 (D) 4th September, 2022 (E) 6th September, 2022 (F) 8th September, 2022 (G) 30th September, 2022
Questions 7 Under freight forwarding business in Canada, both English and French are the prevailing widely and CIFFA STC is available in both languages. In case of a dispute, as a freight forwarder which version of the standard trading condition will you like to produce to the jury or in the court of law?
Questions 8 Which of the following is not presumed as a force majeure? Identify all that applies. (I) Currency and trade restriction, blockade, embargo, sanction. (II) General labor disturbance such as boycott, strike and lock-out, go- slow, occupation of factories and premises. (III) War (whether declared or not), hostilities, invasion, acts of foreign enemies, extensive military mobilization. (IV) Unfavorable fluctuations due to speculation in the currency exchange rates. (V) Explosion, fire, destruction of equipment, prolonged break-down of transport, telecommunication, information system or energy. (VI) Forest fires causing significantly vast amount of migration of inhabitants from countryside to the urban areas. (VII) Act of government authority whether lawful or unlawful, compliance with any law or governmental order, seizure of works, nationalization. (VIII) Plague, epidemic, pandemic, natural disaster, extreme natural event, nuclear, chemical or biological contamination. (IX) Unprecedented continuous lower circuits in the stock exchange operating nation-wide. (X) Civil war, riot, rebellion and revolution, military or usurped power, insurrection, acts of terrorism, sabotage or piracy.
Questions 9 What is the period of limitation established under standard trading conditions? (A) 1 Month (B) 60 days (C) 3 Months (D) 6 Months (E) 9 Months (F) 12 Months (G) 2 Years (H) 5 Years
Questions 10 A company ONGC Incorporation appoints a forwarding company to handle goods to be transported from New York to Whitehorse, Yukon that are of dangerous, inflammable, radioactive, hazardous or damaging nature, without declaring it. In this situation what are the options available to the forwarding company?
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