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Title: The enforceability of the letter of indemnity in the context of shipping
Author: Arizon, Felipe de
Awarding Body: University of Newcastle Upon Tyne
Current Institution: University of Newcastle upon Tyne
Date of Award: 2008
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Abstract:
The letter of indemnity has become a very common tool used by shipowners, sellers, buyers and their bankers. Shippers, receivers and carriers are usually motivated to use a letter of indemnity by their desire to fulfil their contractual obligations. Nowadays, the type of letter of indemnity most frequently used is that used to collect cargo without the production of a bill of lading. This practice is in violation of the presentation rule but enables buyers to collect goods at the port of destination without incurring demurrage and other costs at that port. Other typical situations in which letters of indemnity are commonly used include where a letter of indemnity is offered to the carrier in exchange for a clean bill of lading, and where a letter of indemnity is offered to the carrier in order for the carrier to change the destination of the goods carried by sea after a bill of lading has been issued. Letters of indemnity are often used by sellers, buyers, carriers and banks in ignorance of the relevant legal principles and the legal risks they are taking. This is not entirely surprising since the legal implications of the use of the letter of indemnity are still being explored. Sometimes, the enforceability of the letter of indemnity is questioned by shipping operators. At other times, making use of letters of indemnity brings unexpected results. The use of letters of indemnity is closely linked to the use of the bill of lading in the context of shipping and international trade. While the bill of lading remains an essential document for international trade and finance of goods, its functions often impose restrictions on and cause complications for sellers, buyers, carriers and banks, which force them to utilize alternative methods to perform their contractual obligations. The aim of this thesis is, therefore, to explore thoroughly the implications of the letter of indemnity for all parties involved in shipping. This exploration will demonstrate that letters of indemnity, in this context, fulfil a useful purpose and that the real question is how best to control their use. Thus, in this thesis, the author's aim will be to reach a conclusion, in respect of each type of letter of indemnity, as to where the line should be drawn between the use of the letter of indemnity which should be supported by the law, and use where the letter of indemnity should be unenforceable.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID: uk.bl.ethos.539297  DOI: Not available
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