Assignment: Todd case
Introduction
This is the case that Carter PLC accepted consignment of Scrutton PLC’s goods via vessel Bingo and during the transport five containers of cement were washed off the deck by water and missed at sea, while the water diffused into the cargo hold causing damage to the cement. Scrutton PLC’s direct loss was that the damaged cement could not be delivered to Todd. The problem is that although it was agreed that the shipper is entitled to compensation for damages to the goods no more than the freight charge, when negotiating the terms and conditions of transportation Carter PLC said they reserve the right of handling the cargo with container on deck, while the documents had no such provision. We need to solve the problem whether Todd has to accept the documents and pay the freight charge and whether Todd can claim for any right or economic compensation on Carter PLC.

QUESTION 1
What are the duties?
Todd should accept the documents and the document was 'clean'. After receiving the documents sent by Scrutton PLC and under the condition that Carter PLC has shipped and delivered the goods on time Todd should accept the documents. Scrutton PLC must deliver the goods on board at the port of shipment on the agreed date or within the agreed period. Carter PLC should ensure that Todd’s goods are shipped and arrived in accordance with the provisions of documents on time. This point was Golodetz V Czarnikow (1980).
Duties been broken
Although Scrutton PLC arranged cargo transportation and handled cargo insurance, Scrutton PLC had finish obligation to guarantee the delivery of goods to agreed port of destination. When Scrutton PLC delivered the goods to Carter PLC on board of vessel Bingo and had delivered the documents to the buyer, Scrutton PLC as the seller has completed their duties. Whatever happens after this shall be owned by the carrier and the buyer. This point was Tregelles v Sewell (1862).
Breaching contract
In this case under the CIF contract, if goods have arrived, the buyer must accept the documents regardless of the problem with the goods, since the goods have gone beyond the seller’s duties and the buyer shall assume the risk and responsibility for the goods. The buyer must receive and collect the goods from the carrier at the named port of destination after the seller has delivered the goods on board on the agreed date or within the agreed period.
Remedies
Under a CIF contract, when they arrived goods are damaged due to the carrier's failure of responsibility, the buyer according to terms and conditions of the contracted documents can only claim on the carrier to bear the liability for breach of contract. The carrier shall make corresponding compensation based on the terms and conditions of documents.

QUESTION 2
What are the duties?
Todd as the buyer must pay the purchase price to Scrutton PLC in accordance with the provisions of the sale contract. If Todd accepts the documents, then it has the responsibility for payment. Under normal circumstances, as long as the seller guarantees that the shipments comply with the contract and as long as the documents delivered are complete and correct, the buyer must pay. This point was gill& duffus v Berger. The buyer must pay for the goods even though the sellers had not delivered the goods.
Duties been broken
Although Carter PLC is responsible for transporting the goods from the seller to the buyer, and based on the agreement in the documents, Carter PLC has the responsibility to ensure cargo security. After the goods go across the carrier’s ship rail all the costs and risks must be assumed by the buyer. It was held that due to the carrier’s problem the cement was seriously damaged and could not continue to be used, the carrier should assume this responsibility.
Breaching contract
In this case under the CIF contract, Carter PLC's responsibility is to ensure the safety of the goods. Although Todd must make the payment it has the