Course description
This course covers areas of dispute that may arise in the performance of international shipping and trading contracts. Using a mixture of current practice supported by legal interpretation and precedent, delegates will learn to avoid many of the pitfalls that may occur. Real case studies and exercises will provide hands-on experience to enable delegates to draft, interpret and operate oil trading contracts to minimise the risk of dispute. An on-going case study will simulate events taking place in an arbitration.
What you will learn
- How to draft and interpret an oil contract and charter party terms
- How to review and amend documents and letters of credit and documents
- How to understand the responsibilities involved in contract performance/nomination
- How to identify and react to a breach of contract
- How to assess and present quantity and quality claims
- How to assess and present demurrage claims
- How insurance is affected ? the need to mitigate
- How to manage and successfully resolve disputes
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Content
Contracts
- The process of entering into a contract
- Verbal and written agreement
- Confirmation process and written agreement
- Contract structure and terms
- General terms and conditions
- The Vienna Convention vs UK Sale of Goods Act
Quantity and Quality
- Methodology - internal standards vs terminal practice
- Description of the oil
- Specifications and test methods
- The obligations of the inspector
- "Final and Binding"
- Reproducibility vs. repeatability
Nomination
- The "Nominations Procedure"
- Substitution
- Failure to nominate
- Frustration and remedies
- Documentary instructions
Documents
- The purpose of the Bill of Lading
- Rights of the Bill of Lading holder/right to sue
- Tanker, ocean, charter party Bills of Lading
- Clean, dirty, clausing, Note of Protest and markings
- Shipper, consignee, endorsement, "to the order"
- Accomplishment
- The role of the LOI
- The rights and obligations, bank co-signature
Letters of Credit
- Types of credit, documentary and standby
- Role of the banks opening, confirming and advising
- Obligations, rights of the bank
- UPC5000
- Doctrine of Strict Compliance
- Stale Bills of Lading
- Presentation and expiration
Breach of Contract
- Frustration
- Repudiation/cancellation
- Force Majeure
Shipping
- ISPS code and practice
- Safe port / safe berth provisions
The Charter Party
- The process of chartering
- Chart party terms and standard C/Ps
- The obligations of the charterer and the owner/master
- Special clauses
- Carriage of Goods at Sea Act
- Hamburg and Hague-Visby Rules
- General average and implications
- Remedies for non performance, "Freight is Sacrosanct"
- Pollution and OPA
Insurance, Claims and Damages
- P&I Clubs
- Bulk oil clauses
- Underwriters
- Claims
- Inherent vice
- The assessment of damages
- Consequential or remote damages
- The obligation to mitigate
- Tort
Dispute resolution
- ADR
- Arbitration
- Litigation
- Jurisdiction
- Costs/appeal
Preparation of Operations of Storage Contracts
Case Studies and Exercises Include
- Contract negotiation
- Disputes over quantity and quality
- Nomination issues
- Damaged bills of lading
- Letters of credit acceptability
- Breach of contract
- Charter parties
- Demurrage