Question

You are the buyer of a large quantity of ball bearings. You sign a contract drafted by the seller which states you will "pay $500,000 for shipment for agreed goods arriving to New York next year on ship MV Liberty." Afterward you realize that "Liberty" is a common name in shipping and are concerned that a risk exists that you will be forced to pay for different goods that arrive on a ship with a similar name. Evaluate this risk and articulate ways that the contract could have been drafted to prevent a problem.

Answer 1

Answer:

The shipment must be consigned to the buyer by name, and the prior information about the shipment would be shared by the seller with the buyer at the time of shipping, and there are remote chances of a different ship of the same name carrying different goods in the name of this buyer.

Explanation:

If the situation occurs where we have to pay for every ship of that name it will be a huge loss for the company financially . So we have to be careful. While signing a contract we have to make sure the details of that particular ship like regustration number are mentioned in the document. This prevents the risk as the number and details exist only for one ship even if name is common.

" The buyer will pay $500000 for shipment of goods ___________ arriving in the New York next year on the ship MV Liberty. The seller will share the details of the goods including size, weight and description of goods, shipping date, carrier name and its parent shipping company, expected date of delivery etc. when the shipment takes place. The payment will be subject to matching of description of goods ordered to the received one to that satisfaction of buyer.