Task 1

Analyse and answer questions A by following the IRAC format.

QUESTION (A) :

With reference to the relevant legal provisions and case laws, discuss the legal implication(s) arising in the following situations:

EON agreed to sell 200 Proton X70 motorcars to John Smith & Co. Ltd. (JS), a company based in London, under a c.i.f. sale contract. The contract provides that it is the obligation of EON to enter into a contract of carriage with the carrier, to make a contract of insurance and to ship the motorcars at Port Klang onboard a ship bound for London. The contract further provides that the sole condition for payment of the purchase price is the tendering of a clean bill of lading, a commercial invoice and an insurance policy by the seller to the buyer. On 1st February, EON shipped two hundred Proton Persona motorcars at Port Klang on board The Bunga Raya, which was bound for London. On 7th February, when the ship carrying the motorcars entered a port of call, it collided with a tanker causing the destruction of the cargo. That very afternoon, EON presented a clean bill of lading, a commercial invoice and an insurance policy to JS for payment of the price. JS refused to pay arguing that the goods have not been delivered. Advise EON.

(30 marks)