Qatar Trade Law No. 27/2006 Thursday, 14 April 2011 01:28

The seller, at his expense, will contract with a professional and reputed insurer a maritime insurance agreement on the goods, which shall cover the risk of the trip. Every installment shall be insured if the sold item is shipped in installments. The seller himself cannot be an insurer for the buyer.

It is obligated that the insurance shall be contracted with a negotiable document and under the conditions by which the custom is conducted at the port of shipment, but the amount of insurance should not be less than the price mentioned in the sale contract plus ten per cent.

The seller is obliged with the insurance against the risks of normal transport only. In case of risks of a particular trade, the seller is not bound by insurance against it unless he has an agreement with the buyer.

The seller will not be obliged to the insurance of the sold item against the dangers of war unless the contract specifies otherwise.

The seller has to send to the buyer without delay a clean and negotiable document of shipping especially which is related to the sold goods. It must include the evidence that proves that the goods were loaded onto the ship on that date or within the period specified for shipment. The seller has to authorize the buyer, or his representative, the right to receive the goods or transfer this right to him in an appropriate legal way. If the document is related to the shipping fee then it shall be endorsed by the transport company on the day of shipping as it will report about the completion loading of the goods on the ship.

The bill of loading shall be attached with a list of the sold goods, insurance document or a certificate and it shall also include its basic terms which entitles the bearer the rights which have to be verified with the document, as well as other documents that may be required by the buyer to prove the conformity of the goods as provided for in the contract and certificate of origin and other documents.

If the bill of loading referred some of the things to lease agreement of the ship, then a copy of this contract must be attached.

The bill of loading shall be considered as clean if it didn’t include the explicit additional conditions that confirm the presence of defects in the sold item or in the way of its packaging. The reference in the bill of loading to the previous use of vessels or packages or to the irresponsibility that results in damage due to the nature of the sold item or to the ignorance of the transporter about the contents of the parcel or its weight, shall not be included in these terms.

The buyer is obliged to accept the documents sent by the seller, if they are not identical to the conditions set forth in the contract of sale. The buyer is susceptible to those documents if he didn’t object to it within seven days from the date of receipt. The objection will be made by notifying the seller to send documents in conformity with the conditions within a reasonable period.

The buyer after the expiry of that period may ask for an annulment of sale with the compensation if it was needed. If the buyer returns the documents for some specific reasons or accepts the same with conditions, then he cannot make any objection due to the reasons and the restrictions that were previously not provided.

If the buyer returns the documents without justification, then he will be responsible for compensating the seller for the damage.

If the ship on which the sold goods have been loaded arrived before the arrival of documents or the documents that have reached are incomplete, then the seller shall immediately, after notifying him of that, do everything necessary to enable the buyer to obtain a copy of the documents that did not arrive or complete the missing documents. The seller shall bear the expenses necessary to do so with the compensation if it was needed.

The buyer is committed to receive the goods after examination and verification of its conformity with the documents that have been received if the ship arrives. The buyer shall bear the expenses due on the goods during the voyage by sea until they reach at the port of arrival, unless agreed to include these expenses in the freight. The buyer shall also bear the import duties or customs duties on the sold item.

If the goods appeared to be contrary to the documents and the difference did not exceed the allowable amount according to the custom, the buyer is obliged to accept the goods with a deduction in the price that would be estimated by the experts in accordance with established practice in the port of arrival.

The sale with delivery on the board (F.O.B)

The sale FOB (FOB) is a sale in which the goods are delivered at the port of shipment on the board of ship designated by the buyer to transport the same.

The buyer has to conclude a contract of carriage of the goods and pay its expenses as well as notify the seller in the suitable time about the name of the vessel which chose to transport, place and date of shipment, or the time limit set for the procedure.

The buyer may be represented by the seller in the conclusion of the contracts of insurance of the goods and its transfer.