On November 26 , the documents are tendered on Acros’ Ltd agent. The bill of lading is dated November 18th 2020. On November 18th 2020, citrus fruit had increased in price to £10 per kg due to increased local demand. The cargo arrives at the Port of Southampton, UK, on December 22 . Acros’ Ltd agent discovers the following upon inspection. He discovers that the quantity exceeds 1,000kg. The total quantity is 1,050kg.
The agent also discovers less than 0.1% of the citrus fruit have been spoilt and cannot be used. Finally, he also discovers that while the citrus fruit is fit for human consumption, the citrus fruit is not fit for use in beauty products, a purpose the goods are commonly used for. Citrus Dealers SAC are demanding payment of £10,500. Arcos Ltd claim they are only obliged to pay the £5 contractual rate for all 1,030kg of citrus fruit received, and do not need to pay for the remaining 20kg. Advise Arcos Ltd on the following:
1)What law governs their contract with Citrus Dealers SAC
2)Whether Arcos Ltd can reject the documents for containing a different date on the bill of lading to the one stated on the second notice of appropriation
3)Whether Arcos Ltd can reject the goods on the ground that they did not comply with the first and second notices of appropriation, out of time and wrong date on the bill of lading respectively.
4)Whether they can reject the goods on the ground that the goods received were in excess of the quantity contracted for.
5)Whether they can reject the goods on the grounds that less than 0.1% of the goods are spoilt.
6)Whether they can reject the goods on the grounds that the citrus fruit is not fit for the purpose of use in beauty products.
7)How much Arcos Ltd will have to pay if they cannot reject the goods. Whether they should only be obliged to pay £5,150 (£5 x 1,030kg) and not £10,500 (£10 x 1,050kg) or some other amount.
8)What damages or other remedies they will be entitled to exercise whether or not they can reject the good