Original scientific paper
Stoppage in transit and right of control : 'Conflict of rules' ?
Časlav Pejović
; Kyushu University, Fukuoka, Japan
Abstract
Stoppage in transit is a common law mechanism of protection of unpaid
seller aimed at protecting the seller against the risk of non payment of
the price. This seller’s right has been adopted in a modified form by
the UN Convention on the International Sale of Goods (CISG). On
the other hand, under the rules of maritime law, there is the right
of control over the goods performed by the holder of all originals of
the negotiable transport document. The stoppage in transit, as defined
by the CISG contravenes the right of control under the maritime law
rules, particularly in civil law jurisdictions, where the seller does not
have the right to stop the goods in transit, unless he is in possession
of all originals of a transport document. This ‘conflict of rules’ became
apparent after the UNCITRAL draft of the Convention on Contracts
for the International Carriage of Goods Wholly or Partly by Sea
was adopted in July 2008. Differently from all previous conventions
regulating carriage of goods by sea, this UNCITRAL Draft expressly
regulates the issue of right of control during the carriage. Under
those provisions, the right of control is in the hands of the holder of
all originals of a transport document. Hence, under the UNCITRAL
Draft the seller does not have the right to stop the goods in transit,
unless he is the holder of all originals of a transport document, which
is in conflict with the CISG provision on the stoppage in transit. This
paper analyzes this ‘conflict of rules’ of these two conventions which
were, interestingly, adopted by the same international organization.
Keywords
carriage of goods by sea; stoppage in transit; transport documents
Hrčak ID:
41939
URI
Publication date:
30.8.2009.
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