References: [1988] 2 Lloyds Rep 574
Coram: Hobhouse J
THe effect of article IX is to make plain that what article IV rule 5 refers to is the gold value of the pound sterling not its nominal or paper value. ‘Fortunately for carriers this result is not disastrous, as most nations where Hague Rules are still mandatorily applicable have converted the package limitation into local currency instead of using the gold limitation. However, great care is needed in drafting bill of lading contracts (which usually contractually apply Hague Rules to shipments from those nations that have no mandatorily applicable law) to write in only Articles I to VIII of the Hague Rules and then provide separately for a package limitation of £100 (or whatever), thereby avoiding the ‘Gold Clause’ trap.’
Statutes: Hague Rules
This case is cited by:
- Cited – Dairy Containers Ltd -v- Tasman Orient Line Cv PC (PC, Bailii, [2004] UKPC 22)
PC (New Zealand) The appeal concerned the correct interpretation of a damage limitation clause in a contract for the carriage of goods by sea.
Held: Clause 6(B)(b)(i) must be construed in the context of the . .
