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Ocean freight has been one of the most utilized modes of shipment throughout the globe as it is cheaper and it can transport any size or weight of goods. Unfortunate for some, this method involves risks such as occurrence of unprecedented disasters, accidents, or malfunctions of…
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Download file to see previous pages... Mallor, et al., 2012) in their contract stating that full payment for the ordered goods will be rendered upon successful delivery of goods in perfect condition. Whereas, any circumstance that result to failure of delivery will therefore discharge the buyer from paying the agreed amount for the transaction. Setting conditions in a contract protects both parties from being charged with breach especially if failure of delivery is a result of force majeure.
On the other hand, the seller must secure a conditioned contract with a third party - insurance companies of the cargo ships – where, under the classification of condition precedent (Mallor, et al., 2012), the monetary amount insured will be collected by the seller in instances that their goods are damaged during transport.
In addition, their bond with the buyer must indicate specific conditions to prevent allegation of breach of contract from the other party if such circumstance occur. Nevertheless, condition stated by the seller must indicated non-performance of expected duty only in force majeure situations such as bad weather condition that result in damage of goods during transport thus preventing excuses to non-performance other that what is indicated in the contract (Mallor, et al., ...Download file to see next pagesRead More
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