Unit-9

LAW OF CARRIAGE
Meaning & importance of law of carriage
The term carriage means transporting goods or passengers
from one place to another that may be within or outside the
country. The party who undertakes to carry goods or people is
called the carrier.
A contract of carriage may be defined as, a contract, whereby a
person or firm or company agrees to carry goods or people from
one place to another in return for a payment.
According to section 65.1 of NCA, 2056, a contract of carriage
is deemed to have been concluded if it provides for
transportation of goods from one place to another.
Again, section 65.2 states the carriage contract of carriage as,
the receipt to be issued by the carrier to the owner of the goods
for the purpose of carriage, is regarded as the proof of contract
of carriage between them.
Hence, the term contract of carriage is a contract concluded
between to persons or parties to carry goods or passenger from
one place to another for money.
The following points reveal the importance of this sort of law:1) To facilitate, regulate & regularize the relation between the
owners & carriers.

2) To make carrier accountable for the carriage of goods.

3) To make liable to the carrier for loss or damaged caused to
the goods during carriage.
4) To limit the liability of carrier in ordinary contract of
carriage.
5) To impart the knowledge of legality of business of carriage.
6) To save the agent & partners from the liability as carrier.
7) To provide remedy in the breach of contract of carriage.
8) To provide healthy environment for the carrier to perform
the business.
Classification of carrier
The carrier can be classified as follows:1) On the basis of fees
a) Non-gratuitous carrier
Carrier which carrier goods or passenger for payment is called
non-gratuitous carrier.
b) Gratuitous carrier
It refers to the carrier which carries goods or passenger free of
cost.
2) On the basic of subject matter
a) Carrier of passenger
A carrier which is used to carry only people from one place to
another, is called carrier of passenger.

b) Carrier of goods
This cost of carrier carries only goods & no passenger.
3) On the basis of service
a) Private carrier
A private carrier is one who doesnt do regular business as a
carrier but occasionally carries others goods for money.
b) Common or public carrier
Any individual firm or company other than the government.
Who transports goods as a business for money over the land or
in land, water ways without discrimination between consigners
consignors is called a common carrier.
Rights of common carrier
The carrier which is used for transportation services is a public
or common carrier. A common enjoys curtain rights.
They are:1) Right to receive remuneration
A common carrier carries goods always on hire. The amount of
carriage payable to the carrier will usually be mentioned in the
contract.
2) Right to receive reasonable charge
A common carrier is entitled to receive reasonable charges for
his work.

3) Right to receive extra charges for extra work

Sometimes the goods to be carried may be of specific nature
and the carrier may have to take special or extra care for giving
protection to such goods. In such condition, the carrier will be
entitled to claim extra charges for such extra work done.
4) Right to refuse to carry goods
Generally a common carrier is bound to carry goods of other
unless:a) He has no room in the vehicle.
b) The goods offered are not of the kind he professes to carry.
c) The destination is not to which he usually travels.
d) The goods are offered at an unreasonable hour.
e) The goods are not property packed.
f) Reasonable charges are not proved.
5) Right of lien (keep possession of property)
if carrier is not paid for his work then he can retain or with then
can retain or with hold the property until he is duly paid.
6) Right to claim compensation
if the sender keeps some risky goods or poisonous goods or
stolen goods in the vehicles without informing the carrier about
them and the carrier has to suffer some loss due to carrying of
such goods, he will be entitled to claim compensation from the
sender for such loss.

7) Right to sell
Under the following circumstances a common carrier may enjoy
a right to sell them either
a) If the goods are perishable.
b) If they are supposed to be perished by the time when they
arrived at the place of delivery.
c) If it is not possible to inform the sender of such matter.
8) Right to take necessary action
If the consignee (one who receive goods) doesnt accept
delivery, the carrier will be entitled to take any of the following
steps:a) If the goods are perishable, he can be informing to the
sender, sell them in the market.
b) If the goods are not perishable but are refuse to be accepted
by the consignee, he can until he gets further instruction
from the sender, keep the goods in the nearby go down for
necessary protection.
c) He can recover from the sender the sums paid by him to the
go down keeper or other necessary expenses incurred by
him for the protection of goods.
9) Right to limit liabilities
Under some special conditions, robbery, theft, fire, rain,
accident, etc. the carrier may limit his liability by entering into a
special contract with the consigner.

 Duties of common carrier

Common carrier has certain duties to be fulfilled. They are:1) Duty to delivery goods in the destination
Under section 66.1 of NCA, 2056, it is the duty of the carrier to
carry & deliver goods at the prescribed place and in the proper
condition.
2) Duty to transport the goods safely
In case of goods received from the consigner are lost, destroyed,
broken, or harmed or in case they do not reach their destination
improper condition for any reason the carrier shall be held
responsible.
3) Duties to carry goods within reasonable time
The carrier must carry goods within the time mentioned in the
contract. It no time is prescribed in the contract, then within
reasonable time & handover to their owner or his agent or a
person designated by him.
4) Duty to carry goods without discrimination
A common carrier is bound to carry goods of every person any
discrimination.
5) To carry goods through customary route
A common carrier has its regular route to carry goods & it
always carries the goods through the same route.

6) To follow the instruction of the consignor

If before delivery the sender comes to know that the consignee
has been declared insolvent, he may ask the carrier not to deliver
the goods to consignee or he may ask the carrier to stop the
goods in transistor return the goods to himself.
7) To inform the sender about the goods
The carrier cannot, generally sell the goods in transit unless he
gets permission of the sender.

The liabilities of a common carrier

A common carrier is strictly liable for loss or damage to the
goods irrespective of negligence. Section 66 to 70 NCA 2056,
has mentioned the liabilities of a carrier as follows:a) To carry goods to a particular place
b) To deliver goods within a specified time
c) The first carrier becomes liable
d) To pay compensation.
According to English law, a common carrier of goods is an
insurer, i.e. he is bound to indemnify the owner in full for any
loss or damage to the goods. However, this rule of common law
is subjected to following exceptions:1) an act of god

in case of natural calamities like earthquake, storm, landslide,

tsunami, the carrier is not liable.
2) The queens enemy
When damage is caused by a hostile, foreign, sovereign or
government during, war the carrier is not liable.
3) Inherent vice (defect) in the thing carried
When damage is caused due to inherent defects in the goods, the
carrier is not liable
contract of affreightment (hiring)
the term affreightment means hiring ship to carry cargo from
one place to another place. Contract of affreightment means an
agreement which is made for carriage of goods by water or sea.
Parties of the contract of afreightment
1) Ship owner
A person who is the owner of the ship & undertakes to transport
the goods is called a ship owner.
2) Charterer or consigner
A person who hires the sip & delivers the goods to the ship
owner for transportation is called a charterer or consigner.
3) Consignee
A person to whom the goods are addressed & to whom the ship
owner ship owner should deliver the goods is called a consignee.

The contract of affreightment is explained by Osborns concise

law dictionary in the following way, a contract made either by
charter party or by bill of lading by which a ship owner agree to
carry goods in his ship for reward.
Thus, a contract of affreightment is a contract by which the ship
owner, in consideration of carriage promises to carry goods of
the consigner of carriage to carry goods of the consigner from
one part to another in & outside the country & deliver them to
the consignee or his agent within time as mentioned in the
contract.
types of contract of affreightment
a contract of affreightment can be of two types:1) charity party
a charter party may be defined as an agreement in writing for
hiring an entire ship or a major portion there of for the purpose
of carrying goods through sea routes.
A charter party may be of two types viz..
a) time charter
if a ship is chartered for a definite period of time, it is called
time charter.
b) Voyage charter
If a ship is reserved for a particular voyage, from a particular
port to another particular port, it is called voyage charter.

The types of charter party can be made either under demise or

without demise.
a) Charter under demise
Under this charter party, the charterer hires the entire ship on
lease or demise either for a particular period of time or for a
particular voyage. The charterer himself is liable for the voyage.
b) Charter without demise
If the ship is hired (wholly or partly) just for carrying goods
without the terms of reserved to carry goods or passengers for a
certain time or voyage but the ship will be run by the shipping
company under its own responsibility.
Main clauses of a charter party
A charter party generally contain the following terms &
conditions:a) Name & address of the contractual party
b) Name of the ship
c) Nationality of ship
d) Class of the ship
e) Position of ship (i) place of ship (ii) sea worthiness of ship
f) Point of departure
g) Measurement of ship & its capacity
h) Description of the goods
i) Payment of freight
j) Lay days & demurrage

k) Condition as to perils of the sea

l) Condition as to lien
m)
Condition as to privilege
n) Rights & duties of captain
2) Bill of lading
Bill of lading is not merely a document of evidence of the
shipping company for the carriage of goods through sea mutes.
According to blacks law dictionary. a document that indicates
the receipt of goods for shipment & that issued by a person
engaged in the business of transporting or forwarding goods
According to charter worth, a bill of lading is a document
signed by the ship owner, which states that certain goods have
been shipped on a particular ship or have been received for
shipment.
Hence, bill of lading is a kind of document used in carrying
goods by sea route. It acknowledges the receipt of goods by the
ship owner for carriage.
Characteristics of bill of lading
A bill of lading has the following characteristics:1) Signature
Bill of lading is a document of title to the goods on behalf of the
shipping company, the captain of the ship will sign over it as the
company agent.

2) Receipt of carriage
It contain the name of the ship & the condition of the goods
loaded in the ship along with the time & the port delivery & the
name of the consignee.
3) contract
bill of lading is a contract made between shipper & the shipping
company for the carriage of goods through sea route.
4) Document of title
As a document of title, anybody having this bill will enjoy a
right to take delivery of goods from the company.
5) Semi-negotiable instrument
Bill of lading is not a fully negotiable because it the title of the
endorser of this bill is defective, the title of the endorsee will
also be defective.
Document of carriage
Following are some of the important documents of carriage by
airs:1) Passenger ticket
The carrier is liable to issue a ticket to the passenger. The
passenger ticket shall be contained following particulars:a) name & address of the airway company
b) name & number of the airplane

c) name & address of the passenger

d) date of issue of ticket
e) date & time of departure
f) places of departure & arrival
g) companys liabilities towards passengers & cargos
2) luggage tickle
except the small & portable luggage that a passenger can carry
with him, the air service receives the other luggage & sends
them to the lockers room of the plane. After the goods are being
handed over to the air service, the later gives to the consigner a
ticket as an evidence of the receipt of such goods which is called
luggage ticket. A tag of luggage ticket shall contain the
following matters in addition to that mentioned in passenger
ticket:a) no of luggage & their weight
b) place of departure & arrival
c) no. of passenger ticket
d) date & place of cargo received
e) particulars about the delivery of goods to the receiver
f) price of the goods as stated by the passenger
g) matters relating to liability of their service etc.
airway bill
it is the document prepared by the consigner of goods (cargo) &
deliver to the carrier by air. The airway bill must be made out by
the consigner in three original parts & be handed over to the
carrier along with the goods. The 1st part of the airway bill must

be marked for the carrier & must be signed by the consigner.

The 2nd part shall be signed by the carrier & handed by him over
to the consigner after the goods have been accepted. The 3rd part
must be marked for the consignee & it shall be signed by both
the consigner & the carrier.
The airway bill should contain the following:a) place & date of execution of airway bill
b) place of departure & destination.
c) Agreed stopping places
d) Name & address of consigner
e) Name& address of carrier
f) Name & address of consignee
g) Nature of goods
h) No of package method of packing & the particulars work or
no of them
i) Weight, quantity, volume or dimensions of the goods
j) Time & route of carriage.