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THE FULL QUESTION IS: Ping is a magazine publisher in England. One of her most p

by | Jan 8, 2022 | Law | 0 comments


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THE FULL QUESTION IS: Ping is a magazine publisher in England. One of her most popular magazines is highly sceptical of the climate change reduction agenda. She wishes to buy paper from exporters in Indonesia. Amina agrees, for a fee, to assist Ping in sourcing the paper from her contacts in Indonesia. Tahir agrees to sell to Amina at a huge discount because Amina is a family friend. At the time, he is unaware that Amina is acting as Ping’s agent. He subsequently discovers that Ping is the “true” buyer. Tahir refuses to honour the contract arguing that he was “not interested to do business in people lacking in morals and ethics”. Ping suspects that the real reason is because Tahir is unhappy with the low price agreed. In securing this contract, Amina had expended certain costs which she wishes to claim back from Ping. She also wishes to claim her fee for the work done in securing the contract.
In a separate transaction, Tahir makes a contract with Byron, expressed in these terms: “sale on CIF Felixstowe terms, June shipment, 200 tons of recycled dry paper pulp”. Payment is by letter of credit, to be issued by Bank Eda. Tahir delivers the following documents to Bank Eda:
– A bill of lading made out specifically to “Byron” referring to “approx. 200 tons high grade paper product shipped on 30 June; bill of lading discharged as a result of wetting of goods onboard vessel”,
– An insurance certificate relating to the goods, –
A commercial invoice referring to “200 tons high grade recycled paper pulp”,
Bank Eda suspects that the bill of lading has been falsely dated and notes that the UK has, with effect from July, banned the import of paper from Southeast Asia. The vessel is due to arrive at Felixstowe on 25 July. Bank Eda refuses to pay Tahir. Byron offers to secure a letter of indemnity from a trade finance house, Fatu Export-Help, whereby Fatu Export-Help undertakes to indemnify the bank from any liability arising from honouring the letter of credit. In a third transaction, Tahir agrees to buy paper pulping machines from Jessica on “FOB any good English port, October shipment”. Tahir arranges for The Nina to load the goods at Southampton, UK and promptly informs Jessica on 15 October that the ship is expected to arrive on or around 26 October. The Nina breaks down on arrival on 27 October and on the same day, Tahir informs Jessica that he is now nominating The Paula which is already berthed at Tilbury, UK. The contract requires Tahir to serve a notice of nomination at least five days prior to end of the shipment period.
Assuming that English law applies to all the above transactions, advise the parties as to their rights and liabilities. Please do NOT discuss matters relating to private international law.


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