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Sverige Design Ltd is a Swedish manufacturer of kitchen appliances. It entered a contract of carriage with Svenska Linjen, a carrier, to transport a cargo

Sverige Design Ltd is a Swedish manufacturer of kitchen appliances. It entered a contract of carriage with Svenska Linjen, a carrier, to transport a cargo of appliances from Goteborg to Fremantle. The Master of the Svenska Linjen issued a clean bill of lading. The bill of lading contained a number of clauses, including the following:

(1) The parties agree that in case of loss or damage to the cargo, the carrier is liable to a maximum amount of 555.56 units of account per package or unit.

(2) The parties agree that the carrier shall not be liable for water-damage to the shipper's goods howsoever caused. Upon arrival, twenty boxes of appliances were water-damaged because seawater had entered the hold through a corroded flange. Thirty crates labelled "Anika Toasters" actually contained "Erika Mixers".

(a) Discuss the validity of Clauses (1) and (2) contained in the Bill of Lading.

(b) Discuss possible issues of international trade law arising from these facts.

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