drawn from the case of Schmoll Fils Co v Scriven Bros Co 1924 i Provisional

Drawn from the case of schmoll fils co v scriven bros

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- drawn from the case of Schmoll Fils & Co v. Scriven Bros & Co. (1924) (i) Provisional delivery (shipment or purchase afloat) o First stage where the seller puts the goods on the vessel o In a CIF contract, seller can perform duty of provisional delivery in a number of ways o 1) seller could himself put goods onto ship ship the goods himself in some CIF contracts, that is the only way of performing that duty this Distributing prohibited | Downloaded by Jesslyn Meads ([email protected]) lOMoARcPSD|1921809
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will be the case, where it is a contract for the sale of specific goods by contrast, where it is sale of generic (unascertained) goods, seller has 3 options; (i) could put goods on board the vessel himself, or (ii) he could buy goods that are already in a ship from a third party provided that the goods comply with contract specifications (iii) seller has third option in case of generic goods could also allocate to the contract, his own goods which are already afloat (in a ship) so in the case of generic goods, seller has three options of shipment (ii) Symbolic delivery (documents) o Symbolic delivery of goods is achieved by delivering the documents instead of goods o If seller fulfils his first obligation of shipment, must then carry out second duty which is to arrange for the relevant contracts of carriage and insurance (as the buyer has paid price, part of which is for insurance and it is seller’s duty to obtain insu rance cover for the transportation of the goods also his duty to enter into contract of carriage for the transportation of goods to buyer’s country – once seller has done this, he must then tender the documents to buyer delivery of the documents, becomes symbolic delivery of the goods o In a CIF contract, the main documents are Bill of lading, insurance policy and the seller’s commercial invoice parties are free to prescribe other documents that seller must tender o Bill of lading = document which is issued by shipowner - that document serves three functions; 1) it acts as a receipt confirming that the shipowner has received the goods that function of receipt is important or buyer because it confirms quantity of goods, the type of goods and condition of goods; 2) it is the evidence of the contract of carriage (contains the terms and conditions of the contract of carriage) so again the buyer, when he receives the bill of lading, knows the extent of their rights and obligations under contract of carriage it is the Distributing prohibited | Downloaded by Jesslyn Meads ([email protected]) lOMoARcPSD|1921809
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bill of lading that will give the buyer the right to sue carrier if carrier has damaged goods in course of transportation; 3) it is a document of title (that is what makes delivery of that document, the symbolic delivery of goods - whoever is lawful holder of bill of lading, has title to the goods on ship) therefore possible to have a chain of contracts for the sale of the same goods whilst they are still making their journey from seller s
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