Goods law

1. LAW OF CARRIAGE OF GOODS
• Presented By Group 4
• Ajay Padhi – 32
• Mahindra Yadav – 28
• Rinku Yadav – 29
• Mirza Ibad – 31
• Rahul P - 30

2. WHAT WE ARE GOING TO DISCUSS:
 Definition of Contract of Carriage
 Carriage of goods
 Types of carrier
 Common Carrier and a Private Carrier
 Carriage of Goods by Land
 Carriage of Goods by Rail
 Carriage of Goods by Sea
 Bill of Lading

3. LAW OF CARRIAGE OF GOODS
• A contract of carriage is a contract between a carrier of goods or passengers and
the consignee or passenger.
• Contracts of carriage typically define the rights, duties and liabilities of parties to the
contract, addressing topics such as acts of God and including clauses such as force
majeure.
• Among common carriers, they are usually evidenced by standard terms and
conditions printed on the reverse of a ticket or carriage document.
• In the commercial life of any country, the need for carrying goods from one place to
another cannot be overemphasized. Also, goods are to be moved from one country to
another.
• For these purposes, a contract of carriage is to be entered into. The persons,
organizations or associations which carry goods are known as carriers. Goods may be
carried by land (including inland waterways), sea or air.

4. ACT OF CARRYING THE GOODS
1. In case of carriage of goods by land:
(i) The Carriers Act, 1865.
(ii) (ii) The Railways Act, 1989.
2. In case of carriage of goods by sea:
(i) The (Indian) Bills of Landing Act, 1856.
(ii) The Carriage of Goods by Sea Act, 1925.
(iii) The Merchant Shipping Act, 1958.
(iv) The Marine Insurance Act, 1963.
3. In the case of carriage of goods by air:
The Carriage by Air Act, 1972.

5. CARRIAGE OF GOODS:
 Carriage of goods in law means the transferring of goods by land, sea or air. The
relevant law governs the right, responsibility, liabilities, and immunities of carrier.
 Carriage of goods means the transferring of goods through land (including inland
navigation), air or sea by relevant parties. The laws related to carriage in Bangladesh
are mainly the Carriers Act '1865.
CARRIER:
Any person or an organization, by an express or implied contract, with or without
rumination, carries goods and/or passengers is called carrier.

6. TYPES OF CARRIERS
Types of Carrier
On the bases of product
Common
Carrier
Private
carriers
Gratuitous
carriers
On the bases of Route
Sea Land
The Common Carriers Railway
Air

7. COMMON CARRIER
 A common carrier is one whose business is carriage of goods for hire. A common carrier is defined
as one who undertakes to carry for heir, from place to place the goods of anyone without
discrimination.
(i) the freight chargeable by him is paid to him
(ii) there is accommodation on his conveyance; and
(iii) there is nothing objectionable or illegal about the carrying of goods of a particular consignor.
 If, in spite of the above conditions being satisfied, a carrier reserves to himself the right to
accept or reject an offer, he is not a common carrier. It is worth noting that the Carriers Act,
1865 covers only common carriers of goods and not passengers.

8. PRIVATE CARRIER
• A private carrier is one who does not do regular business as a carrier but
occasionally carries goods for money.
• A private carrier can determinate between different hirers.
• He is not bound to carry the goods of any and everybody.
• A private carrier is not governed by the common carriers act, 1865.
• A private carrier has the same right, duties and liabilities as a bailee under the contract
act.
• He is bound to take as much care of the goods entrusted to him as a man of ordinary
prudence would take under similar circumstances of his own goods of the same quality,
bulk and size.(section 151,152,and 161, contract act)

9. CARRIAGE OF GOODS BY LAND
As mentioned, the following two statutes govern the carriage of goods by land :
(i) The Carriers Act, 1865 is now replaced with Carriage of Road act 2007.
(ii) The Railways Act, 1890 is now replaced with The Railway Act 1989
The Carriers Act, 1865 defines the term “common carrier” and provides for his rights,
duties and liabilities. As regards matters not covered by this Act, the rules of English
Common Law will apply.

10. RIGHTS OF COMMON CARRIER
• 1) Right to get remuneration:
a. A common carrier is entitled to the agreed charges for His work .If charges have not been agreed,
common carrier is entitled to the agreed charges he is entitled to reasonable charges for his services
.He can demand payment of hire in advance and if he is Not paid he may Refuse to carry.
• 2) Right to Retain:
He has a right to retain the goods and refuse delivery thereof until his charges of hire are paid If no charges
are paid he can exercise particular lien over the goods . The lien cannot be enforced If the carrier has agreed
to give credit.
• 3) Right to Recover Expenses:
If some Expenses are incurred due to the safe carriage of goods due to disasters such as flood Then the
carrier can recover the expenses from the owner.

11. • 4) Right to Recover Damages:
• Carrier can recover damages from the consignor if the goods of dangerous natures are
not packed properly due to which some accident happens so the owner is liable to pay
all the damages to the carrier or the vehicle.
• 5) Right to refuse to carry Goods:
• He has a right to refuse to carry the dangerous nature goods. He can also refuse to
carry goods which he does not normally carry.
• 6) Right to Limit his liability:
• A common carrier has a right to limit his liability by Entering into a special contract
Under Certain circumstances.

12. LIABILITY OF A COMMON CARRIER
• He is not responsible for a loss due to an act of god.
• He is not responsible for any injury caused by enemies.
• He is not responsible for any loss which may be due to inherent
defective quality of goods.
• He is not responsible for any loss of goods due to defective packaging
etc

13. CARRIAGE OF GOODS BY RAIL
• The carriage of goods by rail is regulated by The Railways Act, 1890.
Responsibility of a Railway Administration as a Carrier of
Goods :
• 1. Maintenance of rate books, etc., for carriage of goods (Section 61). Every railway
administration shall maintain, at each station and to such other places where goods
are received for carriage, the rate books or other documents which shall contain the
rate authorized for the carriage of goods from one station to another and make
them available for the reference of any person during all reasonable hours without
payment of any fee.
• 2. Provision of rate risks (Section 63). Where any goods are entrusted to a railway
administration for carriage, such carriage shall, except where owner’s risk rate is
applicable in respect of such goods, be at railway risk rate.

14. 3. Forwarding note (Section 64). Every person entrusting
any goods to a railway administration for carriage shall
execute a forwarding note in such form as may be specified
by the Central Government.
4. Railway receipt (Section 65). A railway administration
shall issue a railway receipt in such form as may be
specified by the Central Government:
• (a) in a case where the goods are to be loaded by a person
entrusting such goods, on the completion of such loading;
or
• (b) in any other case, on the acceptance of the goods by it.
• A railway receipt shall be prima facie evidence of the
weight and the number of packages stated therein.

15. 5. Carriage of dangerous or offensive goods (Section 67). No person shall take with
him on a railway or require a railway administration to carry such dangerous or
offensive goods, unless
(i) he gives a notice in writing of their dangerous or offensive nature to the railway
servant authorized in this behalf; and
(ii) he distinctly marks on the outside of the package containing such goods their
dangerous or offensive nature.
6. Liability of railway administration for wrong delivery (Section 80):
Where a railway administration delivers the consignment to the person who
produces the railway receipt, it shall not be responsible for any wrong delivery on
the ground that such person is not entitled thereto or that endorsement on the
railway receipt is forged or otherwise defective.

16. CARRIAGE OF GOODS BY SEA
• Sea is the cheapest means of carriage of Goods. Goods.
• People make/own ships and offer to carry People make/own ships and
offer to carry goods as their business. goods as their business.
• Voyage at sea is prone to many perils. Voyage at sea is prone to many
perils.
• Voyage requires a seaworthy vessel which is Voyage requires a seaworthy
vessel which is fit to carry cargo/people. fit to carry cargo/people.
• Voyage must be timely. Voyage must be timely.
• Voyage must be on agreed route. Voyage must be on agreed route.
• Goods must remain safe. Goods must remain safe.
• Goods must be delivered correctly. Goods must be delivered correctly

17. CONTRACT OF AFFRAIGHTMENT
• When a ship owner under takes to carry goods by sea or to provide a
vessel for purpose the arrangement or to provide a vessel for purpose
the arrangement is known as a contract of affreightment. is known as a
contract of affreightment.
• General Ship – General Ship – A ship owned by a person/s who ply A
ship owned by a person/s who ply it on a particular line (route) and
offer to it on a particular line (route) and offer to carry goods. carry
goods.
• Ship owner is a Common Carrier. Ship owner is a Common Carrier.
• Freight - Freight - Sum of money paid for carriage of goods Sum of
money paid for carriage of goods by sea. by sea.
• Charter Charter – To pay for use of a plane, ship or train. – To pay for use
of a p

18. FORMS OF CONTRACT OF
AFFREIGHTMENT
• We can hire some portion of ship for our goods. The ship
owner takes our goods and goods. The ship owner takes
our goods and issues a Bill of Lading. issues a Bill of
Lading.
• We can hire the entire ship for our goods. We can hire
the entire ship for our goods.
• The ship owner gives us the entire ship The ship owner
gives us the entire ship for a voyage or for a specified
period, for a voyage or for a specified period. This is
called Charter Party.

19. BILL OF LADING
• A document of title whereby the carrier A document of title
whereby the carrier acknowledges receipt of specified goods
acknowledges receipt of specified goods onboard the ship for to
place of onboard the ship for to place of destination on payment of
freight on the destination on payment of freight on the terms and
conditions stated therein. terms and conditions stated therein.
• It is receipt of goods by ship owner or his captain or agent.
• It is evidence of Contract of Carriage.
• It is not a Contract of Carriage in itself.
• Bills of Lading Act 1856 lays down the law.

20. LIABILITIES OF A CARRIER BY SEA
• A carrier of goods by sea i.e. A shipper is liable only for loss or damage
arising or damaging from his negligence or fault. He is not liable even for
the loss caused by the neglect of the master or the mariner or the crew
in the navigation of the ship.
• A ship owner cannot limit or lessen his liabilities arising from his
negligence.
• The carrier shall not be liable in any event for any loss or damage to the
goods in an amount exceeding Euro 100 per package or unit unless, the
nature or the value of such goods have been declared by the shipper
before shipment.
• Goods often of dangerous nature to the shipment where of the carrier,
master has not consented.

21. CARRIAGE OF GOODS BY AIR
• The carriage of goods by air is generally performed by a consignor who makes a carriage
with a carrier and the carrier must send the goods to a consignee. The carrier can be an
airline company or international carriage company.
• Carriage by Air Act, 1972 came into force on May 15, 1973, superseding the erstwhile Indian
Carriage Act, 1934. It is an Act to give effect to:-
• The Warsaw Convention for the Unification Of Certain Rules Relating To International
Carriage By Air, 1929 as amended by the Hague Protocol on September 28, 1955; and
• The Montreal Convention (Convention for the Unification of Certain Rules for International
Carriage by Air) signed on May 28, 1999.
• The Act makes provision for applying the rules contained in the said Conventions to
international and non-international carriage by air and for matters connected therewith

22. AIRWAY BILL
 This is a document handed over by the consignor to the carrier along
with the goods.
 The Air Way Bill is prepared in triplicate, the first copy for the carrier,
the second for the consignee and the third is to be retained by the
consignor, after the carrier has signed it in token of acceptance of
goods.
 The Air Way Bill must contain the specified particulars for the
correctness of which the consignor is responsible and he will be liable
for all damages suffered due to the incompleteness of the particulars.
 The Air Way Bill is the prima facie evidence of the conclusion of
contract of carriage, of the receipt of goods

23. WARSAW AND MONTREAL CONVENTIONS
• The Warsaw Convention regulates liability for international carriage of persons, luggage or
goods performed by aircraft for reward.
• The Warsaw System allowed four choices of jurisdiction for filing of a claim by the passenger
namely, place of issue of ticket, principle place of business of the carrier, the place of
destination of the passenger and the place of domicile of the carrier.
• Under Article 5 of this Convention, the consignor is required to issue a air consignment note to
the carrier, declaring inter alia the value of the goods. If the carrier accepts goods without such
note, he loses his right to seek benefit of the limitation of liability under the Convention for loss
of, damage to or destruction of goods:-
• Further, such limitation does not apply in case of willful misconduct of the carrier.
• Article 29 sets the limitation period of 2 years from the date of arrival or expected arrival at
destination for instituting any claim for damages.

24. • Rights of Consignor:
According to Article 12 of Warsaw convention consignor can:
• Withdraw the goods at point of departure as well as destination.
• To stop the goods in transit.
• Order the good to be delivered at a stopping place.
• Have the goods returned.
• Deliver the goods to someone other than the consignee named on the bill.
• Rights of Consignee:
• Unless otherwise agreed the consignee has the right to receive notice from the
carrier as soon as the goods arrive at its destination.
• The consignee can get delivery on the payment of charges.
• In case of loss the consignee may enforce his rights.

25. LIABILITIES OF CARRIER
Carrier's Liability
Compensation in the case of death or injury:
• the air carrier can defend itself against a claim by proving that it was not negligent or otherwise
at fault.
Passenger delays:
• The air carrier is liable for damage unless it took all reasonable measures to avoid the damage,
or it was impossible to take such measures.
Baggage delays:
• the air carrier is liable for damage unless it took all reasonable measures to avoid the damage.
Destruction, loss or damage to baggage:
• The air carrier is liable for destruction, loss or damage to baggage.
• In the case of checked baggage, it is liable even if not at fault, unless the baggage was defective.
• In the case of unchecked baggage, the carrier is liable only if at fault

26. CASE STUDY:
Liability of Forwarder – Delay
Co. of Canada v Sales Corp. Intl. Group Inc., (2005)
• This was an application by the Plaintiff freight forwarder to recover the amount of its
invoice to the Defendant, its customer.
• The Defendant claimed a set-off and counter-claim for delay in delivering its goods.
Contd..
• The Court held that the delay was due to a downsizing of the aircraft by Air Canada and
was not the result of any negligence on the part of the Plaintiff.
• The Court further held that the Plaintiff had not guaranteed a delivery date but had
merely given an estimated time of arrival.
• Finally, the Court held that the Defendant had not proven any damages due to delay.