国际贸易中信用证，货物海运及海事保险法律相关性初探

【正文】
     Examine the Relevance of the law relating to Letters of Credit, Carriage of Goods by Sea and Marine Insurance, to International Trade
  
   Author: Wu Ge
  
  Content
  
  I.Introduction
  
  II.Letters of credit
  
  1. Introduction
  2. The proper law of the letter of credit
  3. Types of Letters of Credit
  4. Some Attributes of Letters of Credit
  
  III.Carriage of Goods by Sea
  
  1. General Observations
  2. The Charterparty
  3. Bills of Lading
  4. General Average
  
  IV.Marine Insurance
  
  1. Insurable Interest
  2. Uberrimae Fide
  3. Policy of Insurance
  4. Warranties
  5. Assignment of a Policy
  6. Proximate Cause
  7. Categories of Losses
  8. Indemnity
  9. Suing and Labouring Clause
  10. Subrogation
  11. Contribution
  
  V. The Relevance between Sale of Goods, Carriage of Goods by Sea, Marine Insurance and Letter of Credit
  
  V.Conclusion
  
  
  
  
  
  I.Introduction
  
  In international trade, the buyer and the seller located in two different countries play the key role on the base of the contractual agreement of sale of goods between them.Following that the goods are carried and delivered from the seller to the buyer, the carriage of goods system, insurance system and payment system have been set up to regulate the rights and obligations on different players in relation to different business transaction stages.The most common carriage method is carriage of goods by sea in international transaction.This involves a highly specialised contract of carriage called “the contract of affreightment”.To reduce the adventure of goods in transaction, the law of marine insurance governs the scope of the obligations assumed by the assured and the insurer by way of a contract of insurance.And the letter of credit is designed to provide the secure payment in favour of the buyer and the seller.Each of the aforementioned areas have been built on highly detailed and specialised rules which govern all kinds of contracts in different jurisdiction according to the private international law.This paper will examine the relevance of the law relating to the aforementioned areas to international trade in order to touch the elaborate trade system.
  
  II.Letters of Credit
  
  1.Introduction
  
  In international trade, paying for goods presents special problems for both buyer and seller.It is the duty of the seller to deliver the goods and the duty for the buyer to pay for them.The problem always faced by the buyer is that the buyer has to pay for the goods before they have actually arrived and have been inspected.And the problem of the seller is that the goods are out of the seller’s control before payment has been received 1.The use of the letter of credit provides secure method of payment to fill the gap by allaying both these concerns.
  
  There is a contractual engagement in all letters of credit.In United City Merchants v Royal Bank of Canada 2, a whole operation of letter of credit can be seen. The buyer shall appoint a confirming bank at the seller’s domain.This confirming bank shall be directed to pay the seller against the tender of the specified documents to the confirming bank.These specified documents are specified in an express statement contained in the contract of sale or are implied by the use of specific trading terms such as cif or fob in the contract of sale.So the seller has the payment of his price assured by the confirming bank.Before the confirming bank allows the seller to draw for the price, it will receive the documents and will thus be able to hold the documents as security pending payment by the issuing bank, the buyer’s own bank at the buyer’s country.The issuing bank, in turn, will have the documents as security for payment by its own customer, the buyer.The documents will be sent by the confirming bank to the issuing bank after the payment is made.Against the documents, the issuing bank must reimburse the confirming bank, and then collect the purchase price subject to a collection fee by way of commission from the buyer.
  
  At each transfer of documents, the documents specified in the contract contained in the letter of credit are therefore considered to be in the nature of negotiable instruments. The credit transaction is operated by the use of documents, where the documents are deemed to represent the goods.At each negotiation, by endorsement and delivery, the proprietary rights to the goods, which the documents represent, are also transferred to the transferee.
  In common law countries, the nature of the letter of credit has been regarded as a form of guarantee for payment and it works in the same way. But the letter of credit is not the exclusive vehicle for claiming the payment of the goods, particularly when the letter of the credit was unconfirmed.In Saffron v SociteMiniere Cafrika3, the unpaid seller who had the benefit of an irrevocable but unconfirmed letter of credit sued the buyer under the contract of the sale which was held by the High Court of Australia.
  
  2.The Proper Law of the Credit
  
  The international trading payment by the letter of credit involves four contracts separately in two or four jurisdictions.The proper law of the letter of credit is decided by the principle of the closest and most real connection with the contract.In Power Curber International Ltd v National Bank of Kuwait4, the Court of Appeal held that the proper law of a letter of credit is where its payment is made.
  
  3.Types of Letters of Credit
  
  Letters of credit are of various types.The two principal types are the irrevocable and revocable credits.
  
  3.1Irrevocable and confirmed credit
  
  An irrevocable credit is a credit expressly stated to be irrevocable.Thus it cannot be cancelled or modified provided that the seller presents the correct documents to the confirming bank in the contract period.This arrangement obviously gives considerable security to a seller but may have disadvantages for the buyer, since he is committed to the credit.An irrevocable credit is confirmed when the confirming bank, in addition to notifying the seller of the opening of the credit in his favour, adds its own confirmation of the credit to pay.At the moment the legal obligation is transferred from the issuing bank to the confirming bank.In Hamzeh Malas & Sons v British Imex Industries Ltd, theJordanian buyers opened two confirmed letters of credit with the Midland Bank.Each letter of credit was to pay for each instalment of the goods shipped.The buyer found that the first instalment of the goods did not fit for the contractual quality after the first confirmed letter of credit had been realised.So the buyer applied for an injunction to the court to prevent the bank from paying on the second letter of credit.Both at the first instance and on appeal, the injunction was refused for the reasons that the opening of a confirmed letter of credit imposes upon the banker an absolute obligation to pay, irrespective of any dispute rising between the two parties.So the liability posed on the confirming bank must be independent of the contract of sale in order to keep the good commercial system.
  
  3.2Irrevocable and unconfirmed credit
  
  In this kind of credit transaction, the issuing bank cannot revoke its undertaking but the confirming bank does not confirm its own obligation to pay upon a tender of documents. Thus the beneficiary is left to proceed against the issuing bank in the buyer’s domain.This type of credit is less expensive for the buyer because the confirming bank merely advises the seller of the opening of the credit without confirming the irrevocable credit.So the confirming bank works just as an agent of the issuing bank and not as a principal. The irrevocable and unconfirmed credit is popular when the issuing bank is reputable in the world.
  
  3.3Revocable and unconfirmed credit
  
  Such a credit is one, which the buyer has established, but which he may later modify or cancel in so far as the seller has not already drawn on it.The issuing bank may be liable to the confirming bank if a payment has been made in accordance with the terms of credit conveyed by the issuing bank to the confirming bank before the buyer modify or cancel the credit.
  
  3.4Other types of letters of credit
  
  Many other letters of credit exist.Some of them service particular trades.Three of the most important ones are the revolving, back-to-back and ‘red clause’ credits.
  
  3.4.1Revolving credit
  
  A revolving credit is employed when buyer and seller deal regularly with each other or have arranged to trade over a period.In such a situation it is inconvenient to set up a separate documentary credit for every transaction.Accordingly, the buyer establishes a credit with a maximum limit of payment for drawings by the seller. So long as the seller presents correct documents, the confirming bank will pay according to the terms issued by the issuing bank.The obligation of the buyer is that he must continue to reimburse the issuing bank to keep the maximum sum to pay for each transaction.
  
  3.4.2Back-to-back credit
  
  The primary purpose of the back-to-back credit is to back the financial security of one letter of credit with the obligations assumed by the advising or confirming bank of another.6A seller will in most cases have to buy from the wholesaler or manufacturer the goods he intends to sell.He may require his buyer to set up a credit in his favour and then use this credit to support a second credit, which he opens for the benefit of his own supplier.This arrangement will set up an elaborate system of supporting letters of credit, tracing down to the ultimate purchaser, the buyer who initiated the first letter of credit.7The second or further credits will naturally differ from the first in respect of the price and the date of delivery of the goods.
  
  3.4.3Red clause or anticipatory credit
  
  A ‘red clause’ credit is also referred to as an anticipatory credit.8Under this credit, the beneficiary is entitled to claim a portion of the credit before the requisite documents stated in the terms of the credit are produced.This type of credit is based on trust between the buyer and the seller.
  
  4.Some attributes of letters of credit
  
  Two principles stand out as fundamental to the effective use of letters of credit in international trade: the doctrine of strict performance and the autonomy of the credit.
  
  Under the doctrine of strict performance, the paying bank has a right to reject documents submitted by the seller for payment, if the seller cannot strictly comply with the terms of the credit. Under the autonomy of the credit, if the seller tenders the documents required under the terms of the credit, the bank will be bound by law to honour that credit.The bank will never be affected by any dispute between the buyer and the seller.But if there is an element of fraud in the transaction of sale in which the beneficiary has knowledge, the confirming bank must refuse to accept the documents, and refuse to pay the beneficiary under the clear evidence.
  
  III.Carriage of Goods by Sea
  
  1.General observations
  
  The contract of carriage of goods by sea evidenced by the bills of lading or charterparties is governed by Hague Rules, Hague-Visby Rules and Hamburg Rules respectively. Hague-Visby Rules are an amended version of the earlier Hague Rules and intend to strike a balance between the different interests of carriers and cargo owners arising out of the contract of carriage by sea.However, it is still to be considered too much in favour of the carrier.So the Hamburg Rules has been drawn up under the auspices of UNCITRAL but this code has not yet been adopted. The countries which follow the Hague Rules are: the United States, Malaysia, India, Indonesia, South Korea, Philippines and Taiwan of China.And the countries following the Hague-Visby Rules are:the United Kingdom, Canada, Singapore, Hong Kong, Brunei, Japan and Australia.
  
  2. The Charterparty
  
  Charterparty constitutes the contract of carriage of goods by sea, also known as the contract of affreightment, or works as an evidence of the contract depending on different purpose for which the vessel may be employed.There are three types of charterparties involving the carriage of goods named voyage charterparty, time charterparty and demise charter.
  
  2.1Demise charter
  
  In a demise charter, the charterer possesses and controls the vessel completely.So the “redelivery clause” in the contract is very important for the shipowner to ensure that the charterer fulfils the obligation to redeliver the vessel in same condition at the termination of the charter.The clause is considered as a warranty of the contract to entitle the shipowner to have a claim under the charterparty upon a breach of warranty.9 Especially, the owner of the ship has not vicarious liability to the cargo owners for any loss or damage of the cargo, even that no responsibility for the maintenance of a seaworthy vessel.
  
  2.2Voyage charterparty
  
  In voyage charterpary, the charterer get the right to use the vessel, while the vessel’s control and possession is left in the hands of the owner.The charterer can carry his own goods or someone else’s goods in the charterer’s name to maximise the utilisation of the chartered vessel to earn a profit.The master of the vessel, who works as an agent of the shipowner, will be responsible for the issue of the bill of lading to the cargo owners, thus making not the charterer but the shipowner legally responsible for each cargo owner.The charterer will collect the freight under each bill of lading to pay the agreed hire of the vessel to the vessel’s owner.
  Under the common law, the shipowner has an implied obligation to provide an absolutely seaworthy ship to be chartered.The seriousness of the unseaworthiness is the key to determine the breach of a condition or of a warranty in the contract of affreightment.In Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd,10 two principles have been set up to decide what constitutes the seaworthiness. Firstly, the nature of the defect, which will probably constitute unseaworthiness, has frustrated the commercial nature of the venture for which the vessel was chartered.Secondly, the unseaworthiness of the vessel must be the actual cause of the loss or damage from which the cargo owner suffers. In addition, seaworthiness must be considered within specific time frames from receiving the cargo and properly discharging the cargo after the long sailing.The shipowner must exercise the due diligence to put the ship into the seaworthy condition to overcome ‘ordinary perils of the sea’.11Under Hague-Visby Rules (Article III rule 1) and Hague Rules (Article III rule 1 and IV rule 1), the statutory obligation similarly require the shipowner’s exercise of the due diligence before and at the beginning of any voyage to make the ship seaworthiness.Additionally, other shipowner’s obligations such as cargoworthiness as an aspect of seaworthiness, ship sailing with reasonable dispatch, ship no deviation from the agreed sailing and so on, have been implied under the common law.On the other hand, the charterer in a voyage charter has obligation not to ship dangerous goods and has obligation to nominate safe ports for loading and discharging under the common law.
  
  2.3 Time charterparty
  
  In a time charterparty, the charterer acquires the use of the vessel for a specified period of time and pays “hire” for this.The failure by the charterer to pay promptly will normally entitle the shipowner to withdraw the vessel from the charterer’s use.The shipowner and the charterer take the same implied obligations as in voyage charterparty.
  
  3.The Bills of Lading
  
  The bill of lading is normally issued after the goods have been loaded on to the vessel.It is important in three aspects: bill of lading as a document of title; bill of lading as a contract of carriage; bill of lading as a receipt of the goods.
  
  3.1Bill of lading as a document of title
  
  Bill of lading as a document of title means that it represents the goods afloat on board of a vessel. The bill of lading may be transferred as negotiable instrument from holder to holder and by each transfer the property of the goods are also transferred.The buyer in a cif contract is obligated to pay the seller and has the right to resell or pledge the goods upon the bill of lading without the shipped goods actually arrival.In addition, the bill of lading constitutes an acknowledgment of the goods that have been received for shipment.And the bill of lading state the terms under which the contract of affreightment was made between the goods/cargo owner and the shipowner.The bill of lading, along with the document of insurance and the invoice, serves as a cornerstone for the implementation of payment arranged by way of letters of credit.
  
  3.2Bill of lading as a contract
  
  The Bill of Lading Act 1855 of United Kingdom had made the bill of lading the contract of affreightment.12But under the common law, the bill of lading is never completely regarded as the contract of carriage, which in normal circumstances will have been concluded between shipper and carrier before the bill of lading is issued.The bill of lading may contain contractual terms but not all terms in the contract of carriage are included in it.In the circumstance, the bill of lading is at most the contract document or the evidence of the contract.However, once the bill of lading is transferred by indorsement to a third party, it becomes the contract between indorsee and carrier.
  
  3.3 Bill of lading as a receipt
  
  The bill of lading will identify the quantity, description and condition of goods put on board.13So it is very important for the buyer, sub-buyer or pledgee of the goods to hold the bill of lading, which serve
  
  as evidence of goods shipped in good order.Once the bill of lading is signed, the carrier cannot later deny that he has received the goods and that they are also in good order.
  
  4.General average
  
  All kinds of interests are involved in a marine adventure. In a marine emergency, the sacrifice of one or more of the interests concerned with the adventure was deemed necessary to save the rest of interests.The persons whose interests were sacrificed would become entitled to claim a rateable contribution in proportion to the value of the interests that were thereby saved.This is called general average under the maritime law.The people who benefited from the sacrifices will be responsible for general average contributions.The Marine Insurance Act14 is the main law to govern the general average.The general average loss, expenditure and act are defined in the Act.In Pirie v Middle Dock Co,15 the court laid down six principles regarding General Average: (1) danger must be common to both ship and cargo;16 (2) any prudent Master of a vessel would have reasonably thought that there was a reasonable necessity for a sacrifice; (3) the sacrifice must be made voluntarily;17 (4) what has been castaway/sacrificed should not have become lost or pose a danger to the adventure and therefore valueless;18 (5) imperilled property must have been saved as a result of the sacrifice;19 (6) circumstances which made a sacrifice necessary should not have been self-created.20
  
  IV.Marine Insurance
  
  Marine Insurance is a specialised form of insurance contract whereby the insurer undertakes to indemnify the assured, in manner and to the extent thereby agreed, against marine losses incident to marine adventure.21 The United Kingdom statute of 1906 is regard as the most important codifying statute concerning to the marine insurance.The law was ordinarily adopted by the main western countries, such as the United States of America, Canada, Australia, and by some southeast countries, such as Singapore, Malaysia, Brunei and Hong Kong.
  
  
  1.Insurable interest
  
  Two features are concerned with the marine insurance contract.One is that all insurance contracts are indemnity contracts.The other one is that the assured must always have an insurable interest in the subject matter that he wishes to insure.Failing to do so, the marine insurance contract will be void as a gaming or wagering contract under the Marine Insurance Act 1906, section 4.
  The Marine Insurance Act defines the insurable interest in terms of an interest in the marine adventure.As professor Lakshman Marasinghe concluded,22 the specific interest in the goods must provide a benefit to the holder of the legal or equitable interest in the goods by their safe arrival or inflict upon such person or persons a disadvantage by their loss, damage or detention. It is not necessary for an insurable interest to be happening at the time of the policy of insurance issued or at the time of the contract of insurance made. But the insurable interest must exist at the time of the loss. Whether the defeasible, contingent or partial interest are all insurable in marine insurance.In order to maintain the indemnity nature of the insurance contract, the Act also provides certain guidelines for the determination of the insurable value of the insured interest.23 The insurable value includes not only the value of cargo shipped, but also the value of the ship from stem to stern and port to starboard, including freight, wages and other disbursements like the payments made to stevedores and mechanics.
  
  2.Uberrimae fide
  
  All insurance policies, whether marine, life, fire or accident, require the observance of uberrimae fide, the utmost good faith, on both the insurer and the assured.The breach of the utmost good faith may cause the insurance contract to be void ab initio.24 Especially, uberrimae fidei requires the highest degree of good faith.25The duty to disclose any material fact under the utmost good faith applies equally to the two parties’agents.26 A failure by any party’s agent to disclose any material fact would amount to a failure to observe the utmost good faith giving the other party an option to avoid the contract.
  
  Under the Act, the assured is presumably deemed to know every material fact in relation to the risk, which he ought to know in the ordinary course of trade. And the assured must inform the insurer every material fact prior to the making of the contract.27What constitutes a material fact is a question of fact depending on whether that circumstance ‘would influence the judgment of a prudent insurer in fixing the premium, or determining whether he will take the risk’.28
  
  The position in respect of positive representations by the assured is much the same as that in respect of disclosure.The Act requires that material representations made before the contract is concluded must be substantially true; otherwise the insurer will be entitled to avoid the contract.Representation includes matters of fact and a matter of expectation or belief which is deemed to be true if made in good faith.29
  
  3.Policy of insurance
  
  A policy of insurance is a fundamental element to the marine insurance contract.It must be issued in the standard form provided in the schedule to the Act to make harmonization of the marine insurance in the world.At the same time, the policy must identify the certainty of the subject matter insured under the Act.The ports of loading and discharge will normally be specified in the policy.Any change will lead that the insurance never comes into effect.According to the subject matter insured, the statute classifies six types of policies.These are voyage policy, time policy, mixed policy, floating policy, valued policy and unvalued policy.30
  
  4.Warranties
  
  The Marine Insurance Act contains a number of warranties each of which is a promissory warranty and must be complied with strictly.If a breach of warranty happened, the insurer will be discharged from all liability in respect of losses occurring after the date of such breach and it is immaterial that the breach was later remedied and the warranty complied with before the loss occurred.31 However, it will not terminate the contractual obligation ab initio.Certain other obligations under the contract will keep on.32
  The effect of a breach of warranty arose in The Good Luck.33The insured vessel became a constructive total loss after being hit by a missile while it was, in breach of warranty, in a dangerous area.The defendant insurers had apparently been aware of such breaches but had taken no action.The plaintiff bank had lent money to the shipowner in the belief that the vessel was insured.In the situation, the House of Lords, reversing the decision of the Court of Appeal, held that a breach of a promissory warranty did not automatically terminate the contract. It merely discharged the insurer from liabilities in relation to the underwriting of the risk, any other obligations remaining valid and binding.The insurer had breached its undertaking to inform the bank ‘promptly’ and, therefore, the insurer was liable under the contract of the insurance.
  
  Warranty may be express or implied.An express warranty must be in writing in the policy.Warranties as to nationality and neutrality and those warranties regarding the ship itself are perhaps the most common.There are certain general implied warranties, such as the warranty that the adventure is legal and, the ship will be seaworthy.
  
  5.Assignment of a policy
  
  An insurance policy is a negotiable instrument and as such can be assigned by endorsement followed by delivery.34It is in this way the seller, who is the assured under the insurance policy and must have an interest on the goods,35 will transfer to the buyer the policy demanded by a cif contract.The assignment of a policy can take place either before or after a loss.36Once it is assigned, the assignee acquires all the rights of the assignor and is liable for all equities, claims and defences that a third party may have had against the assignor pertaining to the policy.37
  
  6.Proximate cause
  
  Under the Act, the insurer’s liability is for any loss proximately caused by a peril insured against.38The idea of proximate cause has plagued cases of both marine insurance and carriage of goods by sea.In Leyland Shipping Co case,39 Lord Shaw stressed that where causes combine, the ‘proximate’ cause is not the latest in time, but ‘that which is proximate in efficiency’. Lord Wright’s speech in Smith Hogg 40 suggested that the doctrine of causation does mean different things in marine insurance and carriage of goods by sea.In carriage cases it is enough, in order to hold a carrier liable, that his act or default has been one contributing cause, among the web of causes out of which a loss, or damage, has emerged.In insurance cases, the insurer is liable if the insured peril is the principal, dominant, in short proximate cause, rather than one among several.
  Under the Act, the insurer is not liable for the loss proximately caused by delay, ordinary wear and tear, ordinary leakage and breakage, inherent vice or nature of the goods insured, or for any loss proximately caused by rats or vermin. 41
  
  7.Categories of losses
  
  There are two types of losses under the Act, namely total loss and partial loss.The total loss is further divided into the actual total loss and the constructive total loss.42A partial loss is associated with the term particular average loss which is distinguished from a general average loss.The insurance policy may relate to either or both types of loss.But the general average loss is deemed as uninsurable interest under the Act.43The principal difference between the two types of loss is that the assured must give a notice of abandonment if he wishes to claim for a constructive total loss.Upon a valid abandonment, the insurer takes over the interest of the assured.Where no notice of abandonment need be given, it is possible for a constructive total loss to become an actual total loss, which does not require the giving of a notice of abandonment.
  
  8.Indemnity
  
  In marine insurance, the measure of indemnity is a matter of agreement between the insurer and the assured.The measure of indemnity is the value stated upon a valued policy and the full extent of the insurable value upon an unvalued policy where there has been a total loss of the subject matter.Where there has been a partial loss of a ship, the computation is different dependenting on the damage of the ship, the loss of freight, the loss of the goods or other movables. 44
  
  9.Suing and Labouring Clause
  
  Suing and labouring clause concluded in an insurance policy forms separate coverage in the insurance policy and is supplementary to the insurer to pay for the damage to the subject matter.45 Under the clause when the ‘assureds, their factors, servants and assigns’ sue and labour for averting and minimising a loss to the subject matter from a risk covered by the policy, the insurer is liable to indemnify any expenses incurred by them.Under the total loss of the subject matter and the exempting the insurer for partial loss, the insurer’s liability for suing and labouring remains unaffected.But the clause only applies to perils insured against and the measure taken necessarily for averting or minimising a loss.General average losses and contributions and salvage charges and any expenses incurred out of the insurance policy shall be exceptions of the clause.
  
  10.Subrogation
  
  All insurance contracts other than life insurance contracts provide for subrogation of rights after payment for both total loss46 and partial loss under the Act.47The insurer is entitled to take over the interest of the remained subject matter for which the payment has been made in the case of a total loss.The insurer, in the case of indemnity of partial loss, would not acquire a title to the remainder of the subject matter after payment but would be subrogated to all rights and remedies of the assured in and in respect of the subject matter insured.
  The right of subrogation represents the equitable rights in theory.So the basic requirement of the right is that the insurer must have paid a debt for which some others were primarily responsible, otherwise the insurer having no right of subrogation.
  
  11.Contribution
  
  Contribution is also called double insurance with indemnity nature.The Act says:
  Where the assured is over insured by double insurance, each insurer is bound, as between himself and the other insurers, to contribute rateably to the loss in proportion to the amount for which he is liable under the contract.48
  Where the insured amount is less than the insurable value, then the assured himself is deemed to be his own insurer in respect of the uninsured balance.
  
  
  V. The Relevance between Sale of Goods, Carriage of Goods by Sea, Marine Insurance and Letter of Credit
  
  International trading terms constitute the main content of the contract of sale of goods and further decide the whole proceedings of goods transaction. Under the cif contract, the seller endures the obligations to pay the cost of the goods, the marine insurance and all transportation charges to the named port of destination. The passage of property and the transfer of risks are finished when the documents are delivered. The buyer will pay the seller against the receival of the bill of lading, document of insurance and invoice rendered by the seller.But the buyer’s right to examine the goods and reject them if they are not in conformity with the contract still remains unimpaired. In other trading terms contract, delivery of goods, passage of property and transfer of risks are different.Any breach of the special terms will cause remedies under the sale of goods contract.Insurable interest in marine insurance, arrangement of carriage of goods by sea and the letter of credit are all based on the international trading terms which are included in different contracts of sale of goods.
  
  VI.Conclusion
  
  In conclusion, the contemporary international trade is underpinned by the elaborate trade system from the ancient practice.The uniform of trans-national trade has greatly improved by Hague Rules, Hague-Visby Rules and Hamburg Rules which have been and will be incorporated into main trade countries’ laws.The harmonization of international trade legal system is greatly increasing the certainty and confidence of the pursuers on international business transaction.
  
  
  
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  Reference
  
  1Lakshman Marasinghe, Principle of International Trade Law, Butterworths, 1998, p487.
  2 ^[1982] 2 WLR 1039.
  3100 CLR 231 (HC-Australia).
  4 ^[1981] 3 All ER 607.
  5 ^[1958] 2 QB 127, ^[1957] 2 Lloyd’s Rep549.
  6 Lakshman Marasinghe, Principle of International Trade Law, Butterworths, 1998, p507.
  7 Ian Stach Ltd v Baker Bosley Ltd ^[1958] 2 QB 130 at 138; and Baltimex etc v Metallo Chemical RefineryCo Ltd ^[1956] 1 Lloyd,s Rep 450, 455.
  8 Lakshman Marasinghe, Principle of International Trade Law, Butterworths, 1998, p511.
  9Lakshman Marasinghe, Principle of International Trade Law, Butterworths, 1998, p258.
  10 ^[1962] 2 QB 26.
  11 FC Bradley & Sons Ltd v Federal Steam Navigation Co Ltd (1927) 27 L1 L Rep 395.
  12 Lakshman Marasinghe, Principle of International Trade Law, Butterworths, 1998, p321.
  13 ibid, p329-340.
  14 Marine Insurance Act 1906 (UK), Marine Insurance Act, RSO 1990, M2, (Ontario); Marine Insurance Ordinance, Cap 329, (Hong Kong), and Marine Insurance Act, 1909-1973, (Cth) (Australia).
  15 (1881)44 LT426.
  16 Also see: Royal Mail Steam Packet Co. V English Bank of Rio de Janerio (1887)19 Q.B.D.; Hamel v Peninsular and Orient Steam Navigation Co. (1908)2 K.B. 298; Joseph Watson and Sons, Ltd., v Firemen’s Fund Insurance Co. of San Francisco ^[1922] 2 K.B. 355.
  17 Athel Line Ltd. v Liverpool War Risks Insurance Association Ltd. ^{[1944 1]} K.B. 87.
  18 Shepherd v Kottgen (1877) 2 C.P.D. 585.
  19 Chellaw v The Royal Commission on the Sugar Supply ^[1922]1 K.B.12.
  20 Strang, Steel & Co. v Scot & Co. (1889) L.R. 14 App. Cas. 601; Marida Ltd., and others v Oswal Steel & others ^[1994] 2 All E.R. 289.
  21 An Act to Codify the Law Relating to Marine Insurance 1906 (UK), 6 Edw 7, c41, s1; Marine Insurance Ordinance, Cap 329, Hong Kong, s2 910, Marine Insurance Act, RSO 1990, M2 (Ontario); Marine Insurance Act, 1909-1973 (Cth.) S7.
  22 Lakshman Marasinghe, Principle of International Trade Law, Butterworths, 1998, p408.
  23 Ibid, s 16 (UK); ibid, s 17 (Ontario); ibid, s 16 (Hong Kong); ibid, s 22, (Australia).
  24 Albany Insurance Co v Anh Thi Kieu 927 F2d 882 (1991).
  25 Anne Quinn Corp v American Manufacturers Mut Ins Co, 369 F Supp 1315 (1973).
  26 Contractors Realty Co Inc v Insurance Company of North America 469 F Supp 1287 (1979).
  27 An Act to Codify the Law Relating to Marine Insurance 1906 (UK), 6 Edw 7, c41, s18 (1); Marine Insurance Ordinance 1964, Cap 329, Hong Kong, s18 (1), Marine Insurance Act, RSO 1990, M2 (Ontario) s19 (1); Marine Insurance Act, 1909-1973 (Cth.) s24 (1) (Australia).
  28 Ibid, s 18 (2) (UK); ibid, s 19 (2) (Ontario); ibid, s 18 (2) (Hong Kong); ibid, s 24 (2), (Australia).
  29 Ibid, s 20 (UK); ibid, s 21 (c) (Ontario); ibid, s 20 (Hong Kong); ibid, s 26 (Australia).
  30 Lakshman Marasinghe, Principle of International Trade Law, Butterworths, 1998, p428.
  31 An Act to Codify the Law Relating to Marine Insurance 1906 (UK), 6 Edw 7, c41, s33 (3); Marine Insurance Ordinance 1964, Cap 329, Hong Kong, s33 (3), Marine Insurance Act, RSO 1990, M2 (Ontario) s19 (1); Marine Insurance Act, 1909-1973 (Cth.) s39 (3) (Australia).
  32 Lakshman Marasinghe, Principle of International Trade Law, Butterworths, 1998, p438.
  33 The Bank of Nova Scotia v Hellenic Mutual War Risks Association (Bermida) Ltd, The Good Luck ^[1991] 3 All ER 1 (HL), reversing the CA ^[1989] 3 All ER 628.
  34 An Act to Codify the Law Relating to Marine Insurance 1906 (UK), 6 Edw 7, c41, s50 (3); Marine Insurance Ordinance 1964, Cap 329, Hong Kong, s50 (3), Marine Insurance Act, RSO 1990, M2 (Ontario) s51 (3); Marine Insurance Act, 1909-1973 (Cth.) s56 (3) (Australia).
  35 Ibid, s 51 (UK); ibid, s 52 (Ontario); ibid, s 51 (Hong Kong); ibid, s 57, (Australia).
  36 Ibid, s 50 (1) (UK); ibid, s 51 (1) (Ontario); ibid, s 50 (1) (Hong Kong); ibid, s 56 (1), (Australia).
  37 Ibid, s 50 (2) (UK); ibid, s 51 (2) (Ontario); ibid, s 50 (2) (Hong Kong); ibid, s 56 (2), (Australia).
  38 Ibid, s 55 (UK); ibid, s 56 (Ontario); ibid, s 55 (Hong Kong); ibid, s 61, (Australia).
  39 Leyland Shipping Co. Ltd. V Norwich Union Fire Insurance Society Ltd ^[1918]] A.C. 350.
  40 Smith Hogg v. Baltic & Black Sea Insurance Co. (1940) A.C. 997.
  41 An Act to Codify the Law Relating to Marine Insurance 1906 (UK), 6 Edw 7, c41, s55; Marine Insurance Ordinance 1964, Cap 329, Hong Kong, s55, Marine Insurance Act, RSO 1990, M2 (Ontario) s56; Marine Insurance Act, 1909-1973 (Cth.) s61 (Australia).
  42 Ibid, s 56 (2) (UK); ibid, s 57 (3) (Ontario); ibid, s 56 (2) (Hong Kong); ibid, s 62 (2), (Australia).
  43 Ibid, s 66 (1) (UK); ibid, s 67 (1) (Ontario); ibid, s 66 (1) (Hong Kong); ibid, s 72 (1), (Australia).
  44 An Act to Codify the Law Relating to Marine Insurance 1906 (UK), 6 Edw 7, c41, ss67-71; Marine Insurance Ordinance 1964, Cap 329, Hong Kong, ss67-71, Marine Insurance Act, RSO 1990, M2 (Ontario) ss68-72; Marine Insurance Act, 1909-1973 (Cth.) ss73-77 (Australia).
  45 Ciconett v Home Insurance Co., 80 F Supp 431 (1948).
  46 An Act to Codify the Law Relating to Marine Insurance 1906 (UK), 6 Edw 7, c41, s79 (1); Marine Insurance Ordinance 1964, Cap 329, Hong Kong, s79 (1), Marine Insurance Act, RSO 1990, M2 (Ontario) s80 (1); Marine Insurance Act, 1909-1973 (Cth.) s85 (1) (Australia).
  47 Ibid, s 79 (2) (UK); ibid, s 79 (2) (Ontario); ibid, s 79 (2) (Hong Kong); ibid, s 85 (2), (Australia).
  48 Ibid, s 80 (UK); ibid, s 81 (Ontario); ibid, s 80 (Hong Kong); ibid, s 86, (Australia).