RULE 9 - Indemnity


Do the goods itemised correspond exactly to those in the delivery order?

A liner agent in Hong Kong was asked to deliver a consignment of frozen chickens against a letter of indemnity counter-signed by a  bank.  The indemnity covered 112,000 kilos of frozen chickens with a value of US$ 100,000.  The agent faxed the indemnity to his principal, who confirmed that the cargo should be delivered.  Unfortunately the employee who prepared the delivery order failed to notice that the cargo covered by the bill of lading was 224,000 kilos of frozen chickens, whereas the indemnity only referred to 112,000 kilos. The shipper claimed US$ 100,000, the value of the misdelivered chickens, from the principal who subsequently recovered from his agent.

Date: 03/08/1997

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