Poutin owns and operates a biscuit making factory. Poutin asks her friend, Xin, to buy
refined flour. The contract provides that Xin will receive a percentage of the purchase
price as reward. Thor agrees to sell 10,000 tonnes of refined flour to Xin. Xin knows that
Thor has a long established policy of not selling to buyers with poor corporate social
responsibility standards. Poutin’s factory has been in trouble for causing environmental
pollution, paying her workers less than the national minimum wage, and using child
labour. Xin thus conceals, from Thor, the fact that she is acting as Poutin’s agent. Thor
refuses to deliver the goods upon finding out that Xin is acting for Poutin. In the light of
Thor’s refusal to perform the sale contract, Poutin is also thinking about not paying Xin.
In a second contract, Poutin agrees to buy from Donna “CIF Liverpool, June shipment
of 20,000 tonnes Grade 1 refined flour”. Payment is by letter of credit issued by Bank
Eeran. The following documents are presented by Donna to Bank Eeran:
– A bill of lading describing the goods as “approx. 20,000 tonnes high grade
refined flour” with a stamp mark showing that shipment date to be “30 June”
and a clause stating “goods in apparent good quality and condition but wetted
after loading”;
– An insurance certificate referring to “20,000 tonnes refined flour shipped from a
Black Sea port to Liverpool”;
– A commercial invoice referring to “20,000 tonnes Grade 1 refined flour”.
Donna has secured a letter of indemnity from Bank Farah to indemnify Bank Eeran if
Bank Eeran is found liable for paying against non-conforming documents. Bank Eeran
still refuses to pay.
In a third transaction, Poutin agrees to sell a quantity of generic pet food to Bing. The
contract is expressed to be on “FOB Tilbury, November shipment” terms. Bing makes
the following nomination of the ship on 24 November:
“Final nomination: Elegant/sub”
The Elegant unfortunately breaks down on 26 November. On 29 November, Bing
nominates the Gracious as substitute. On the same day, Poutin’s factory is burned
down. The goods are destroyed. Poutin refuses to make delivery.
Assuming that English law applies to all the above transactions, discuss the
rights and liabilities of the parties.Poutin owns and operates a biscuit making factory. Poutin asks her friend, Xin, to buy
refined flour. The contract provides that Xin will receive a percentage of the purchase
price as reward. Thor agrees to sell 10,000 tonnes of refined flour to Xin. Xin knows that
Thor has a long established policy of not selling to buyers with poor corporate social
responsibility standards. Poutin’s factory has been in trouble for causing environmental
pollution, paying her workers less than the national minimum wage, and using child
labour. Xin thus conceals, from Thor, the fact that she is acting as Poutin’s agent. Thor
refuses to deliver the goods upon finding out that Xin is acting for Poutin. In the light of
Thor’s refusal to perform the sale contract, Poutin is also thinking about not paying Xin.
In a second contract, Poutin agrees to buy from Donna “CIF Liverpool, June shipment
of 20,000 tonnes Grade 1 refined flour”. Payment is by letter of credit issued by Bank
Eeran. The following documents are presented by Donna to Bank Eeran:
– A bill of lading describing the goods as “approx. 20,000 tonnes high grade
refined flour” with a stamp mark showing that shipment date to be “30 June”
and a clause stating “goods in apparent good quality and condition but wetted
after loading”;