James International Ltd based in France entered into a contract to sell 100 tons of wheat CIF Bristol to Helen Trading Ltd based in England. The contract was expressly subject to English law.
The contract required the goods to be shipped in May 2013. The wheat must be packed in 10kg bags and must be of ‘fair average quality of the season’s shipments’ as certified when the goods were put on board the vessel. The wheat was shipped partly in 10kg bags and partly in 20kg bags.
A ‘received for shipment’ bill of lading dated 30th April 2013 was tendered to Helen Trading Ltd and a loading inspection certificate dated 2nd May 2013 attesting to the goods being up to warranty standard. The bill of lading was from Calais to Bristol and it stated that ‘Goods were not shipped in apparent good order”. A certificate of insurance was also tendered and showed that the insurance covered the voyage from Le Havre to Bristol. The goods safely arrived at the port of Bristol on 8th May.
Helen Trading Ltd rejected the documents and refused to make payment. James International Ltd argued that the goods arrived at the port of destination in good condition and sued Helen Trading Ltd for non-acceptance of the goods.
Advise both parties of their potential liabilities and remedies.’