Applied Business Methods

1. Applied Business Methods 6th Lecture

2. Classification of Documents Commercial vs. Financial; Shipping vs. Banking; Documents of title vs. Documents providing disposition rights; Statutory documents vs. „May-documents”; • Documents of title: • Ocean bill of lading; • Warehouse warrant; • Insurance policy; • Bill of exchange;

3. Special Phrases Negotiation→ ipso iure (by virtue of law); Assignment vs. Negotiation=endorsement; To the order of…..→ Actors: • Bearer; • Holder; • Holder in due course; • Endorser/endorsee; Blank or full endorsement; Jointly and severally liable;

4. Ocean /marine Bill of lading 1 • Connossement originating from Code of Justinian; The first use in the modern sense: 1350 • Prima facie evidence of the receipt of cargo; • Conclusive evidence of the contract of carriage by sea; • Document of title; • Actors: • Shipper; • Carrier or master or agent of the carrier; • Consignee; • Full set=3/3 vs. 1/3 enough to the cargo; • Can be pledged;

5. Content of B/L 2. The shipper furnish information on: • Leading marks for identification of goods that must be legible until the end of the voyage; • Number of packages/pieces/quantity or weight; • The shipper have to guarantee for the information furnished by him and has to indemnify the carrier against all losses and damage arising from the inaccuracies of these particulars; BUT Any clause which is able to relieve the carrier from liabilty for the loss/damage to the goods arising from negligence, fault, failure: null and void;

6. Negotiation of B/L 3. „Owners”: • Bearer/holder/holder in due course; • Holder in due course has the title to the goods beyond all doubts since he has given adequate value for the bill in good faith and without notice of the breach of duty, fraud, mistake, duress, loss, theft or conversion; to the order of a specified person; • Bearer/Holder = to the order of …. has to prove in case of doubt if he… Negotiation: • By pure delivery or • By endorsement and delivery;

7. Types of B/L 4. Types: clean vs. unclean → apparent good order and condition vs. positive notation; • Liner vs. Charter’s; • Shipped aboard vs. Received for shipment; • Port-to-port vs. Combined or Multimodal; • Through; Switch; Straight; Other documents: Booking note; Mate’s receipt; Letter of indemnity;

8. Bill of exchange 1. • Geneva Convention 1933/BEA 1882/ UCC • Unconditional promise or order to pay; • A sum certain in money • On demand; • At sight/ at a fixed date/ at a determinable future time ? • Actors: drawer, drawee, payee, acceptor, endorser, endorsee, per aval security provider, holder, bearer, holder in due course;

9. Bill of exchange 2. Endorsement with recourse; without recourse; Holder in due course→ takes the instrument free from all claims and defenses to it, if: Holder → takes the instrument subject to all valid claims and defenses thereto; Acceptor →drawee’s irrevocable engagement towards the payee; Per aval security provider →a bank that confirms the acceptor’s payment obligation B/E must be honored irrespective of the existence of the underlying transaction: it is a quasi money;