Carriage of Goods Act 1979

  • repealed
  • Carriage of Goods Act 1979: repealed, on 1 September 2017, by section 345(1)(a) of the Contract and Commercial Law Act 2017 (2017 No 5).
8 Kinds of contract of carriage

(1)

For the purpose of determining upon whom liability for the loss of or damage to any goods is to fall, every contract of carriage shall be one of the following kinds:

(a)

a contract for carriage at owner’s risk, under which the carrier shall not be liable for the loss of or damage to any goods, except where the loss or damage is intentionally caused by the carrier:

(b)

a contract for carriage at limited carrier’s risk, under which the carrier shall be liable for the loss of or damage to any goods in accordance with sections 9, 14, and 15:

(c)

a contract for carriage at declared value risk, under which the carrier shall be liable for the loss of or damage to any goods up to an amount specified in the contract and otherwise in accordance with sections 9, 14, and 15:

(d)

a contract for carriage on declared terms, under which the carrier shall be liable for the loss of or damage to any goods in accordance with the specific terms of the contract.

(2)

Subject to the succeeding provisions of this section, where in any contract of carriage the term “at owner’s risk” or the term “at limited carrier’s risk” or the term “at declared value risk” or the term “on declared terms” is used, the contract shall be deemed for the purposes of this Act to be one to which paragraph (a) or paragraph (b) or paragraph (c) or paragraph (d) (as the case may require) of subsection (1) applies.

(3)

Subject to the succeeding provisions of this section, the kind of contract of carriage to be entered into in a particular case is a matter for agreement between the parties.

(4)

Where the contract does not purport to be of a particular kind, it shall be deemed for the purposes of this Act to be a contract for carriage at limited carrier’s risk.

(5)

No contract of carriage purporting to be a contract for carriage at owner’s risk shall have effect as such (but instead shall have effect as a contract for carriage at limited carrier’s risk) unless—

(a)

the contract is—

(i)

in writing; and

(ii)

expressed to be at owner’s risk; and

(iii)

signed by the parties or their agents; or

(b)

before, or at the time when, the goods are accepted for carriage, the contracting party or his agent signs a statement in the following terms:

These goods are to be carried at owner’s risk. This means that the carrier will pay no compensation if the goods are lost or damaged, unless he intentionally loses or damages them.”

For the purposes of this paragraph, that statement may be included in the consignment note or any other document relating to the carriage, but in that case the statement shall be conspicuous and shall be separately signed by the contracting party or his agent.

(6)

No contract of carriage purporting to be a contract at declared value risk shall have effect as such (but instead shall have effect as a contract for carriage at limited carrier’s risk) unless the contract is in writing.

(7)

No contract of carriage purporting to be a contract for carriage on declared terms shall have effect as such (but instead shall have effect as a contract for carriage at limited carrier’s risk) unless the contract is—

(a)

freely negotiated between the parties; and

(b)

in writing; and

(c)

signed by the parties or their agents.

(8)

Where, in any proceeding, the question of whether any contract of carriage was or was not freely negotiated is in issue, the court in determining that question shall have regard to the following matters:

(a)

the respective bargaining strengths of the parties:

(b)

the course of dealing between the parties in respect of the particular transaction in question, and any other transactions between them:

(c)

the value of the transaction:

(d)

any extraordinary features of the goods to be carried or the route over which they are to be carried:

(e)

any other matters that the court considers may properly be taken into account,—

and either party may adduce evidence relating to any such matter.

(9)

No contract of carriage at owner’s risk or at declared value risk shall have effect as such (but instead shall have effect as a contract for carriage at limited carrier’s risk) unless the amount by which the freight charged by the contracting carrier under the contract differs from the amount that he would have charged for the same carriage at limited carrier’s risk is fair and reasonable, having regard to the difference in the risk actually undertaken by the carrier and the risk that he would have undertaken if the carriage had been at limited carrier’s risk.

(10)

For the purposes of subsection (9), any rate of freight prescribed by or under any enactment in respect of any mode of carriage pursuant to any kind of contract of carriage shall be deemed to be a fair and reasonable rate to charge for such carriage.

(11)

Any contract of carriage entered into by a contracting carrier with an actual carrier, or between actual carriers, may be of any kind, regardless of the kind of contract that subsists between the contracting carrier and the contracting party; but subsections (5) to (8) shall not apply in respect of any such contract.

(12)

The provisions of sections 9, 14, and 15 apply to contracts for carriage at limited carrier’s risk and to contracts for carriage at declared value risk.

(13)

Sections 9(1), 14, and 15 do not apply to contracts for carriage at owner’s risk or to contracts for carriage on declared terms.

(14)

Notwithstanding anything in section 7, the provisions of subsections (2) to (7) of section 9 apply to contracts for carriage at owner’s risk and to contracts for carriage on declared terms, subject to any express term in the contract.