According to an FOB agreement, risk is transferred at the point where the goods cross the ‘ships rail’. Plaintiff in the case of Pyrene & Co v Scindia Steam Navigation Co sued the defendant carrier and was victorious in recovering damages of £200 as the defendant was found to be liable as he showed negligence while loading the goods and therefore the goods were damaged when they reached the plaintiff. Develin J in Pyrene’s case judged that the liability of negligence would extend to cover up damages if the goods are damaged during the process of loading either side of the ship’s rail. This was the point in English law where the problem of risk bearing arose as it was... [continues]
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