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Royal Honey Ltd., a company based in California, United States entered a contract to sell 15,000 tonnes of honey to Manuka Honey Syrup Ltd., a
Royal Honey Ltd., a company based in California, United States entered a contract to sell 15,000 tonnes of honey to Manuka Honey Syrup Ltd., a company based in Auckland, New Zealand. The terms and conditions of the contract include: Port of destination: Auckland, honey. 15,000 tonnes, Quality Control Certificate, Delivery February/March, port of shipment: Port of Richmond. California, United States. Royal Honey Ltd. delivered the goods from Port of Richmond on 2 April and sent the following documents to Manuka Honey Syrup Ltd, namely, an invoice, a bill of lading, and a certificate of insurance to Manuka Honey Syrup. The bill of lading dated 28th February contains a clause for deviation. Manuka Honey Syrup Ltd. made the payment upon receipt of the documents. When the shipment arrived in Auckland, Manuka Honey Syrup Ltd was suspicious of the condition and quality of the goods. It was found that the honey contains unidentified materials and has deteriorated. The expert brought by Manuka Honey Syrup confirmed that the honey did contain foreign elements and was not fit for human consumption. This contradicts the Quality Control Certificate issued which provides that the honey shipment is in conformity with the contract. Manuka Honey Syrup Ltd. now refused to take delivery of the shipment and demanded for the payment already made against the documents. Discuss the liabilities and rights of the relevant parties under the CISG 1980 by referring to the relevant legal provisions and case laws (if any)
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