The Claims Review - Issue 12, 2004

Issues of Authority.

Welcome to this edition of the Claims Review. The claims examples in this edition are all loosely linked by the theme of authority and we hope that they will prove informative and help reduce the risk of claims against your business. In many cases this is simply the need to stay within the instructions given. However, there are occasions when the issue is whether any authority at all was given. Ship brokers should be aware of the potential liability for breach of warranty of authority and the circumstances described in the claims example “No Principals”. The claim “Wrong Terms” highlights the attempts of some shippers to impose their own terms and conditions and illustrates that agents dealing with bookings should be on their guard. Please circulate the Claims Review widely within your firm and should you require further copies these are available on the Club’s website or can be sent to you by email or fax.

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