Maritime Law

Published: 2019-06-19 05:19:23
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Maritime law, otherwise called the admiralty law is a distinct body of laws that helps in governing the issues relating to the maritime questions and offenses in the society and helps in the tackling the challenges affecting maritime operations in the society. In this way, there is the domestic law that helps in governing the local maritime activities and the private international law that serves to ensure that relationships between the private entities that have their vessels in the oceans (Zhu, 2015). The core aim of the maritime law is to maintain law and order in the running of the business operations regarding the oceans and the high seas. This law therefore proves to be very effective in ensuring that businesses relating to international companies remain in order and that the interests of the private firms operating in the high seas are conserved.

In order to have an understanding of the effectiveness and the relevance of the maritime law in the society, there is need for the society to understand the legal interpretations of the maritime law. In this manner, there is need to help in the analysis of the of the legal effects of the maritime law and how the law affects business operations of the various international countries operating their vessels in the high seas (Mandaraka-Sheppard, 2013). Maritime law helps in specifying the relationships between the various firms that engage in international businesses and this greatly maintaining cordial relationships between the players involved in water transportation. There need to evaluate the effect of the maritime law and help in the creation of the solutions to the issues that affect the modern businesses in the high seas. Besides, countries need to engage in the formation of the maritime law to streamline the legal requirements of the law with the law of specific countries.

The maritime law has great effects in the process of solving challenges relating to the various conflicts in the modern society. This is evident in the case of the accident that took place in the deep seas and the claims that the companies involved requires. In this light, there is need for the companies involved to understand the legalities of the business in the deep seas and have the ability to tackle the challenges relating to any accidents in the oceans in the process of conducting businesses (Robertson, 2013). There is therefore the need for the cargo companies to understand the issues relating to non-cargo liabilities and the resulting claims that may affect businesses in the society. Understanding of the same helps in putting forward any claims for compensation in the cases when accidents arise. In this case, there are various issues that arise due to the accident that took place and the accident between Explorer and Luck could take place in any country in the society.

It is of great need to understand the legal relationship before buying any cargo so as to understand and tackle the challenges such as that which took place between Owen and Barrie. As much as Owen had sold Explorer to Barrie, there are several issues that require keen analysis so as to ensure that both parties acquire justice and that there should not be any escape from the judicial system as Owen is trying to do (Forrest, 2013). In this case, there should be the analysis and the understanding of any claims that may affect the cordial relationships of business owners of any cargo ship in the seas. In this case, the parties and the companies that are involved in the water transport need to understand the contract and Policy and the recommendations of the Salvage Convention of the year 1989.

According to the Contract and Policy, there are various liabilities and claims that aid the two companies need to consider in order to effect compensation of the relevant parties. According to Contract and Policy, Barrie holds all the liabilities as he had confirmed to be fully engaged in the contract because he had acquired the ship. In this case, the contract of marine insurance is confirmed to be concluded since the proposal of the buyer, in this case Barrie, has been received by the insurer. In this case, the policy stipulates that it is not a must that the proposal must be shown that the buyer accepts the proposal but accepting the proposal confirms that the memorandum of the contract is established (MacKenzie, 2015). According to the legalities of the Contract and Policy, Barrie can claim safe arrival of the goods being transported by the ship from the insurance company and this is well stipulated in the policy Act.

The insurance of the safety arrival of the cargo ship ensures that the insurance company needs to insure the safe arrival of all the insured property that the ship caries in addition to the ship itself. However, on the cases when the goods being transported by the cargo gets lost or is damaged in the process, the insurance firm is exempted from paying for the liabilities of the goods incurred. The case of Explorer and Luck therefore do not give the right to claim for compensation from the insurance firm (Li, 2013). This is because the damage that happened to the goods and the ship transporting the oil exempted the insurance firm from any liability. In this case, the liability of paying Luck any money lie in the hands of Owen, the former owner of the ship.

The second liability is that Owen would also be able to pay the Luck to towing money and the repair and this is because Barrier has no legal right to engage in any agreement with the insurance firm since it is Owen who engaged in the signing of the contract. This situation puts Owen in the center of paying all the debts owed to Luck as for the services that Luck offered. Finally, another liability falls on Owen since the accident that took place was a consequence and related to damage of the goods (Smith, 2015). The result is that there was would be no form of compensation from the insurance firms and that the liabilities would lies squarely on Owen. Additionally, since Barrie purchased the ship from Owen, Owen cannot transfer all the liabilities to Barrie since Barrie did not sign any agreement with Luck for the towing and repairing services.

The authority to contract according to the Salvage Convention of the year 1989 has various legal provisions in relation to the issues affecting Owen, Barrie and Luck. Authority to contract helps in the stipulating the rules that elaborates and evaluates on the rules to take on salvage assistance (Brice, 2011). The authority to contract stipulates various laws that help in tackling the challenges such as those affecting Barrie and Luck and the rule stipulates that it is necessary to take salvage assistance. The rule therefore stipulates that in the case where the ship has been sold, such as the case when Own sells the ship to Barrie, the new owner of the ship automatically accepts liability to take salvage assistance in when an accident occurs. Barrie in this case would have the legal responsibility to pay the debts owed to the salvage company.

Secondly, authority to contract also stipulates that it is not reasonably practical to communicate with the cargo owners or to obtain their instructions. This rule gives the Luck the legal right to seek claims from the new owner of the ship, Barrie, and to pay for the debts that were owed to the company by the former owner of the ship, Owen. The rule stipulates that there is no need of informing the cargo owners about the prior agreements on the contracts that was involving the former owners of the ship (Chen, 2013). This gives the Luck the right to seek compensation from Barrie directly. The third rule of Authority to contract also stipulates that the master or the shipowners act bona fide in the interests of the cargo. In this case, the rule stipulates that both the former and the new owners of the ship need to show interests in settling the issues relating to the operation of the ship. This rule is then interpreted to mean that if the previous owner fails to show bona fide interest in the cargo and the ship, the new owner, Barrie should.

Part B

There are various changes that have been made to the Insurance Act 2015 and they have various effects to the law of marine insurance. The change to the Insurance Act 2015 lead to different interpretation of the law of marine insurance and this affects the claims and liabilities affecting the industry of water transport. In this case, there is need for the analysis of the amendments to the law so as to tackle any challenges that may result from the new regulations introduced (Galligan, 2011). It of great need for the players in the water to critically evaluate the amendments and ensure that accidents that may take place in the seas get amicable solutions and that the claims and liabilities in such cases are well defined. In this manner, there is great need for the society to employ legal minds during the process of interpretation of the law of marine insurance.

The Insurance Act 2015 has various changes that it brings to the law of marine insurance and one of it is because it helps in creating avenues through which the parties involved can engage in the claiming for the liabilities. In this manner, the Act gives the parties involved the legal grounds to follow on any liabilities from the insurance firms and ensure that the parties involved get required assistance. Additionally, the insurance Act 2015 helps to show the elaborate on the grounds of claiming for the liabilities and this tackles the challenges of dishonoring contracts and agreements (Brice, 2011). This is because the insurance Act stipulates the grounds through which the parties to any contract can claim for payments safeguard against defaulters. The elaboration on the grounds for sacrifice in any claims and liabilities helps to ensure that every party to a contract honors the legal provisions to a contract.

Another change that the Insurance Act 2015 has on the law of marine insurance is that it creates the grounds for easy payment of the liabilities. This is because the Act creates an avenue through which the parties involved can contribute and tackle the challenges that arise due to average loss. In this manner, the law stipulates the grounds for claiming liability to ensure that there is entitlement of all the claims relating to the marine issues. The Act also helps in specifying the rates of the contributions from other parties (Li, 2013). This is a way to ensure that there is good use of the resources and the accountability is maintained in the management of the resources. The Act therefore stipulates the liabilities in any issues relating to the insurance claims which help in minimizing the fraudulent claims involving the accidents in the seas.

In the cases when ship, cargo of freight are owned by the same assured, the Insurance Act helps in specifying where the liability lies and this makes fastens the tackling of the issues relating to the marine accidents. There is great need to ensure that there is success of the marine cases and that justice is served to the concerned parties. In this light, the Insurance Act 2015 helps to prevent the innocent parties to the contracts and this is due to the fact that the Act clearly outlines the steps of interpretation of the law to ensure that critical analysis and offering of justice remains the center stage of law of marine insurance (Forrest, 2013). Moreover, due to the increasing cases of accident in the deep seas and oceans, there is bound to be a backlog of cases relating to the marine issues. The Insurance Act 2015 therefore helps to ensure that the law of insurance works to reduce the backlog and that the parties involved in the various cases get quick justice.

Another change that the Insurance Act 2015 brings...

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