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The Law
relating to
Carriage
Professor Dr. Afjal Hossain
Chairman
Department of Marketing, PSTU.
Text: Sen, A.K. & Mitra, J.K. Commercial Law and Industrial Law (Business Law)
Topics to be discussed
 The law relating to land carriage
 The law relating to sea carriage
 The law relating to air carriage
Definition
The law relating to carriage are divided into three
heads-
1. Carriage by land is described by two ways-
a) The Common Carriers Act, 1865
b) The Railways Act, 1890
2. Carriage by Sea
a) The Indian Bills of Lading Act, 1856
b) The Carriage of Goods by Sea Act, 1925
c) The Merchant Shipping Act, 1958
d) The Marine Insurance Act, 1963
3. Carriage by Air- Carriage by Air Act, 1972
Definition
 Carrier: Any person or an organization by an express or
implied contract, with or without remuneration, carries of
goods and/ or passengers is called a carrier.
 The same carrier may of course carry both goods and passengers.
 Two types- common carriers and public carriers
 Common carrier: One who undertakes to carry for hire, from
place to place, the goods of anyone who employs him.
 A common carrier as any individual, firm, or company who transport
goods, as a business for money over land or inland waterways
without discrimination between different consignors.
 It is also known as public carrier.
 Private carrier: A private carrier is one who does not do
regular business as a carrier but occasionally carries goods
for money.
 What is the difference between common carrier and private carrier?
Workshop
Common Carrier Private Carrier
1. To carry goods of other for money is
the regular business of common carrier.
1. Carrying goods for others is not the
regular business of private carrier.
2. Common carrier should carry goods of
all the people without discrimination.
2. A private carrier can make
discrimination in carrying goods of the
consignors.
3. No discrimination of the rate of
carriage.
3. Discrimination in carriage.
4. Carriage through customary route. 4. Carriage through different route.
5. Common carrier carries only goods. 5. Private carrier may carry either goods
or passengers.
6. A common carrier is governed by the
Carriers Act, 1865.
6. A private carrier is governed by the
Contract Act.
7. A common carrier is always non-
gratuitous.
7. A private carrier may be either
gratuitous or non-gratuitous.
Characteristics of Common Carrier
1. It may be firm, or individual, or company.
2. Only carriers of goods come within the definition.
3. A common carrier carries goods for business and
money.
4. A common carrier is ready to carry the goods of
any person without any discrimination.
5. The term common carrier is applied only in the
case of carriage by land, and over inland water-
ways.
Duties of a common carrier
1. Must carry goods without discrimination
2. Within time and at the place
3. With safety
4. Must insure
5. Without deviations
Carriage by sea
 Carriage of goods by sea from any port in india to any other port, in
our outside India, is governed by the Carriage of Goods by Sea Act of
1925.
 The contract to carry goods by sea is called the contract of
affreightment.
 The consignor and the shipowner are the two parties of the contract.
 The consideration paid for the carriage is called freight.
 The contract of affreightment may be incorporated in a formal
document containing the terms of the agreement between the parties
which is called a charter-party.
 If there is no formal document, the shipowner merely gives a receipt
for the goods which is known as bill of lading.
Terms of Charter-party
1. Name of the parties and of the ship
2. Nationality of the ship
3. The class of charter-party
4. A statement on the location of the ship and the place of loading
5. The shipowner’s guarantee of fitness
6. The manner in which the voyage is to be conducted
7. The duties of the Master or the Captain
8. The carrying capacity of the ship
9. The liabilities of the charterer regarding freight rate
10. The expected perils
11. The terms regarding loading, unloading, lays days and demurrage
12. Circumstances under which the contract will be cancelled and the
penalties to which the parties may be liable for non-fulfilment of the
terms.
Characteristics of a Bill of Lading
1. Signature
2. Evidence
3. Acknowledgement
4. Document of title
Workshop
What is the difference between charter-party and bill
of lading?
Carriage by air
 The Act of 1972 provides that certain documents are to be issued
when goods and passengers are carried by air. The essential elements
are-
1. The Passenger Ticket
The ticket must contain the place, date of issue, the names of the places of
departure and destination, the agreed stopping places and their changes, the
name and address of the carrier, and a statement that the carriage is subject to
the provisions of the act.
2. The luggage ticket or baggage check (all above including the number and weight of
the packages, and the luggage shall be delivered to the holder)
3. The air consignment note or air waybill
The carrier must insist upon the consignor making out three copies of a note or
waybill. The waybill contain the place and date of its issue, the place of departure
etc.
Law_15.pdf

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Law_15.pdf

  • 1. The Law relating to Carriage Professor Dr. Afjal Hossain Chairman Department of Marketing, PSTU. Text: Sen, A.K. & Mitra, J.K. Commercial Law and Industrial Law (Business Law)
  • 2. Topics to be discussed  The law relating to land carriage  The law relating to sea carriage  The law relating to air carriage
  • 3. Definition The law relating to carriage are divided into three heads- 1. Carriage by land is described by two ways- a) The Common Carriers Act, 1865 b) The Railways Act, 1890 2. Carriage by Sea a) The Indian Bills of Lading Act, 1856 b) The Carriage of Goods by Sea Act, 1925 c) The Merchant Shipping Act, 1958 d) The Marine Insurance Act, 1963 3. Carriage by Air- Carriage by Air Act, 1972
  • 4. Definition  Carrier: Any person or an organization by an express or implied contract, with or without remuneration, carries of goods and/ or passengers is called a carrier.  The same carrier may of course carry both goods and passengers.  Two types- common carriers and public carriers  Common carrier: One who undertakes to carry for hire, from place to place, the goods of anyone who employs him.  A common carrier as any individual, firm, or company who transport goods, as a business for money over land or inland waterways without discrimination between different consignors.  It is also known as public carrier.  Private carrier: A private carrier is one who does not do regular business as a carrier but occasionally carries goods for money.
  • 5.  What is the difference between common carrier and private carrier? Workshop Common Carrier Private Carrier 1. To carry goods of other for money is the regular business of common carrier. 1. Carrying goods for others is not the regular business of private carrier. 2. Common carrier should carry goods of all the people without discrimination. 2. A private carrier can make discrimination in carrying goods of the consignors. 3. No discrimination of the rate of carriage. 3. Discrimination in carriage. 4. Carriage through customary route. 4. Carriage through different route. 5. Common carrier carries only goods. 5. Private carrier may carry either goods or passengers. 6. A common carrier is governed by the Carriers Act, 1865. 6. A private carrier is governed by the Contract Act. 7. A common carrier is always non- gratuitous. 7. A private carrier may be either gratuitous or non-gratuitous.
  • 6. Characteristics of Common Carrier 1. It may be firm, or individual, or company. 2. Only carriers of goods come within the definition. 3. A common carrier carries goods for business and money. 4. A common carrier is ready to carry the goods of any person without any discrimination. 5. The term common carrier is applied only in the case of carriage by land, and over inland water- ways.
  • 7. Duties of a common carrier 1. Must carry goods without discrimination 2. Within time and at the place 3. With safety 4. Must insure 5. Without deviations
  • 8. Carriage by sea  Carriage of goods by sea from any port in india to any other port, in our outside India, is governed by the Carriage of Goods by Sea Act of 1925.  The contract to carry goods by sea is called the contract of affreightment.  The consignor and the shipowner are the two parties of the contract.  The consideration paid for the carriage is called freight.  The contract of affreightment may be incorporated in a formal document containing the terms of the agreement between the parties which is called a charter-party.  If there is no formal document, the shipowner merely gives a receipt for the goods which is known as bill of lading.
  • 9. Terms of Charter-party 1. Name of the parties and of the ship 2. Nationality of the ship 3. The class of charter-party 4. A statement on the location of the ship and the place of loading 5. The shipowner’s guarantee of fitness 6. The manner in which the voyage is to be conducted 7. The duties of the Master or the Captain 8. The carrying capacity of the ship 9. The liabilities of the charterer regarding freight rate 10. The expected perils 11. The terms regarding loading, unloading, lays days and demurrage 12. Circumstances under which the contract will be cancelled and the penalties to which the parties may be liable for non-fulfilment of the terms.
  • 10. Characteristics of a Bill of Lading 1. Signature 2. Evidence 3. Acknowledgement 4. Document of title
  • 11. Workshop What is the difference between charter-party and bill of lading?
  • 12. Carriage by air  The Act of 1972 provides that certain documents are to be issued when goods and passengers are carried by air. The essential elements are- 1. The Passenger Ticket The ticket must contain the place, date of issue, the names of the places of departure and destination, the agreed stopping places and their changes, the name and address of the carrier, and a statement that the carriage is subject to the provisions of the act. 2. The luggage ticket or baggage check (all above including the number and weight of the packages, and the luggage shall be delivered to the holder) 3. The air consignment note or air waybill The carrier must insist upon the consignor making out three copies of a note or waybill. The waybill contain the place and date of its issue, the place of departure etc.