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The Norwegian Law Commission's Recommendations on Maritime Contract Reforms

This document outlines the Norwegian Law Commission's recommendations for reforming maritime contract law, examining the historical failures of the 1970s reforms and addressing current issues such as electronic documentation, multimodal transport, and the implications of liability limitations. The report delves into carrier obligations, shipper responsibilities, jurisdiction, and arbitration, while also considering the integration of sales contracts and letters of credit. It emphasizes the need for clarity in service agreements and the balance of risk allocation in contemporary maritime law.

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The Norwegian Law Commission's Recommendations on Maritime Contract Reforms

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  1. The Norwegian Law Commission’s recommendation– a general approach Professor Erik Røsæg Nordisk institutt for sjørett erik.rosag@jus.uio.no folk.uio.no/erikro

  2. History • The failure of the reforms in the 1970ies • US law reform • Multimodal transports – maritime hegemony • Electronic documents • Integration of sales contracts and letters of credit • New trends in contract law

  3. Outline of the Rules Right of control Transfer of rights Limitation of liability Time limitation Jurisdiction Arbitration Freedom of contract Other conventions Final clauses • Definitions • Scope • Electronic documents • Carrier’s obligations • Carrier’s liability • Special rules • Shipper’s obligations • Transport documents • Delivery of the cargo

  4. Ratification • Yes • Timing • Jurisdiction and arbitration

  5. Implementation technique • Amending the Maritime Code • Individual articles identifiable • Order changed • Drafting style

  6. Final risk allocation • Wrong focus? • Initial risk allocation • Adjustment through price mechanisms

  7. Mandatory • The weaker party • Mandatory rules come at a cost • Cui bono? • Lawyers • Reluctance to use normal contract law • The Norwegian Commission’s approach

  8. Tackle to tackle • First and last terminal • Art. 12(3) • Travaux préparatoires

  9. Merchant haulage • No duty to contract door to door • Documents wider than transport obligation • Clarity

  10. Service agreements • Grater freedom • USA and Europe

  11. Basis of liability • Negligence • Navigational errors • Fire • Unseaworthiness • How it works

  12. Limitation • Insurance costs and total costs • 3 SDR/ 875 SDR • Montreal 19 SDR • Up 50% / 31% • Inflation 731% • No tacit amendment • Privity

  13. Delay • Special limits for delay • Goods damaged by delay

  14. Shipper • Shipper ≠ avskiper • Shipper = contractual shipper • «Contractification»

  15. Shipper’s liability • Liability situation • Basis for liability • Limitation of liability?

  16. Direct action and respondeat superior • General principle of respondeat superior • Direct action on maritime performing parties • No rule on non-maritime performing parties • The distinction

  17. Scope • Mandatory scope • Outside the scope • National transports

  18. National transports • The RR apply • Special limitation regime • National transport as part of an international transport

  19. Relation to Ch. 14 of the MC • Current rules • New approach

  20. Time limitation • Action within two years • Extension • Counterclaims and set-off

  21. Delivery of the goods • Clear delivery mechanisms • Delivering without a negotiable transport document

  22. Right of control • Explicit rules • Similar to delivery • Limited freedom of contract

  23. Position of the receiver • No liability for passive holder • Receiver’s liability • Freight prepaid

  24. Relationship to EU • Competence and supremacy • Jurisdiction • Choice of law • Other? • Ratification

  25. Provisions of the current maritime code • Cancellation • Quantum meruit

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