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FAQ

Can doctrine of privity of contract be proved by bills of lading through anycase law?
A2AShort Answer No.Long Answer Bills of lading represent a major statutory exception to thedoctrine of privity of contract because of the Carriage of Goods by Sea Act1992.In the context of the contract of carriage however the fact that the bill isa symbol representing the goods during transit has the following consequencesa The holder of the bill controls the goods during transit. b A lawful holder of the bill by of the Carriage of Goods by Sea Act 1992has title to sue under the contract of carriage as if he had been an originalparty to it. He becomes subject to liabilities under the contract only when hetakes or demands delivery of the goods from the carrier or initiates a claimfor loss or damage. c The holder is entitled to delivery of the cargo at the port of dischargeon presentation of the bill of lading.Furthermore In New Zealand Shipping v. A.M. Satterthwaite the Privy Councilconsidering Himalaya clause had to consider whether an exclusion clausecontained in a bill of lading BL could be relied upon by a third partystevedore employed by a carrier in a suit by consignees for negligentlydamaging the goods while unloading them. The Privy council gave to thestevedores the benefit of the exemptions and limitations contained in the billof lading by regarding that the shipper had made an offer of a unilateralcontract to the stevedores to unload the goods on terms incorporating theexclusion clause which offer the stevedores had accepted by commencing thework and held that the carrier had contracted to the exclusion clause as anagent for its servants agents and independent contractors and therefore wasdesigned to cover the whole carriage from loading to discharge by whomsoeverit is performed. The performance attracted the exemption or immunity in favorof whoever the performer turned out to be.PS I am not a Lawyer or a Law Student. I don’t vouch for the accuracy of theanswers given by me.