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Law of carriage of Goods

Law relating to carriage of goods can be studied under three heads: Carriage by land Carriage by Sea Carriage by Air

Carriage of Goods by Land

The law regarding carriage of goods by land is

contained in:

1. The common Carrier Act. 1865

2. The Railway Act. 1890

Carrier is a person who carries goods or

passengers for payment whether by land, air or

sea.

Contract of Carriage means that a person or

company agrees to carry goods or people from

one place to another in return for payment.

Features of Common Carrier

1. Common carrier is the agent of sender. Railways is

not a common carrier, it has its separate Act.

2. Common carrier engages in business of transporting

for hire.

3. Common carrier carries goods as a regular business.
4. Common carrier carries goods of all persons

indiscriminately. If a carrier reserves the right to reject

the offerer even if there is accommodation in the

carriage and the offerer is ready to pay the freight, he

is not a common carrier.

5. Inland Navigation means carriage of goods by boats

or steamers that sail in canals and rivers.

Common Carrier Cont….

Common carrier can refuse to carry goods in the following cases:

1. If the vehicle is already full.
2. If the goods are of such nature which he does not carry.
3. If the goods are dangerous nature and may involve extra ordinary risks.
4. If the destination to which the goods are to be transported is not on his normal route.
5. If reasonable charges for carriage are not paid.
6. If goods are not properly packed.
7. If the goods are offered at an unreasonable hour.
8. If the consigner refuses to disclose the nature of goods offered for carriage.

Rights of Common Carrier Cont…

5. Sell the Goods In case the consignee refuses to accept delivery of goods, the carrier is entitled to take such steps as storing of perishable goods or even sell the goods as deemed necessary.
6. Give Concession The carrier can give some concession to any person, but can not charge unreasonable payment from the customers.
7. Refuse to Carry the Goods The carrier can refuse to carry dangerous goods. He can also refuse to carry goods which he normally does not carry.
8. Limited Liability A carrier has the right to limit his liability by entering into a special contract under certain circumstances.

Duties of Common Carrier

1. Receive Goods Common carrier is bound to receive all goods offered for carriage, provided he has conveyance, and goods are of proper kind and the consignee is willing to pay a reasonable price.
2. Carry Goods A common carrier is bound to carry goods of all persons. In case he refuses to carry the goods other than those specified by law, he is liable for damages.
3. Follow Route A common carrier is bound to follow the usual route. He can, however, deviate form the route if necessary for safe carriage of the goods.
4. Deliver Goods A common carrier must deliver the goods at the agreed time or where no time is fixed, within reasonable time. He must use reasonable diligence to avoid delays. He is not responsible for causes of delay beyond his control.

Duties of Common Carrier Cont…

7. Deliver at Proper Place

The goods are to be delivered at the place the consignee has specified, or at a customary place if no agreement has been made to that effect.

8. Delivery to the Right Person

The common carrier must take reasonable care to deliver the goods to the right person.

9. Obey Instructions

When goods are in transit, the carrier is bound to obey instructions of the consignor regarding the alteration of consignee.

Liabilities of Common Carrier

Liabilities Under Carrier Act. 1865

The liabilities of a common carrier are similar

to the liabilities of a bailee. He is not liable if

he is not negligent. For the purpose of carrier

liabilities, goods are classified into two

categories:

• Scheduled Goods

• Non-scheduled Goods

Liabilities Under Carrier Act. 1865

Cont…

2. Non-scheduled Goods

The goods included in the list are called non-scheduled

goods. The common carrier is not liable for any loss or

damage to goods unless it is proved that the carrier was

negligent. The common carrier can limit his liability by a

special agreement with the consignor in respect of non-

scheduled goods.

3. Criminal Act

The carrier is liable for the loss or damage to the goods

resulting from any criminal act on the part of carrier

himself, his servant or agent and for unlawful acts such

converting the for his own use or knowingly delivering the

goods to a wrong person.

Liabilities of Common Carrier under

the British Common Law

According to the British Common Law, a

carrier is liable for damages to the goods,

irrespective of his negligence or not. He is not

liable under the following circumstances:

1. Act of God like earth quakes lightening

floods etc.

2. Enemies of State

The carrier is not liable for losses caused b

enemies of state.

Railways as a Carrier

Railways used for the public carriage of passengers, animals or

goods are governed by Railways Act. 1890.

Consignment Note (FORWARDING NOTE)

Contains description of goods, number of packages, weight,

names and addresses of consignor and consignee, freight paid

or to be paid, liability of the railway. The terms and conditions

are printed on the back of the consignor’s note.

Railway Receipt - The parcel officer of the railway

acknowledges the receipt of consignment on the back of

consignment note undertakes to carry the goods according to

the terms and conditions. The railway receipt is the document

of title of goods.

Duties of Railway Administration

1. Provide facilities

The railway administration is to provide facilities for receiving, forwarding and delivering traffic without unreasonable delays.

2. Treat Equally

Not to give any undue or unreasonable preference, advantage or favor to any particular person or any particular traffic.

3. Follow Directions

Follow directions of Federal Govt. for transporting goods in the public interest. Railway is bound to carry goods of every person who pays freight.

Liabilities of the Railway Cont…

Owners’ Risk

In case goods are carried at the owners’ risk, the railway is not responsible for any loss or damage to the goods unless it is proved that the loss or damage was due to negligence or mishandling of the railway staff.

Delay or Detention in Transit

The railway is not responsible for the loss/deterioration of goods, unless it is proved that the delay/detention was as a result of railway’s negligence.

Wrong Delivery

Where railway delivers the goods in good faith to the person who produces the original receipt, it shall not be liable unless it is proved that he receipt is forged or defective.

Liabilities of the Railway Cont…

Termination of Transit

Transit terminates on the expiry of free time

allowed after unloading the goods. The

liability of the railway administration is during

seven days of unloading.