In the Name of Allah the Most Beneficent and Merciful

CARRIAGE OF GOODS BY SEASea is the cheapest means of carriage of Goods.People make/own ships and offer to carry goods as their business.Voyage at sea is prone to many perils.Voyage requires a seaworthy vessel which is fit to carry cargo/people.Voyage must be timely.Voyage must be on agreed route.Goods must remain safe.Goods must be delivered correctly.

CONTRACT OF AFFRAIGHTMENTWhen a ship owner under takes to carry goods by sea or to provide a vessel for purpose the arrangement is known as a contract of affreightment.

General Ship A ship owned by a person/s who ply it on a particular line (route) and offer to carry goods.Ship owner is a Common Carrier.

Freight - Sum of money paid for carriage of goods by sea.Charter To pay for use of a plane, ship or train.

FORMS OF CONTRACT OF AFFREIGHTMENTWe can hire some portion of ship for our goods. The ship owner takes our goods and issues a Bill of Lading.

We can hire the entire ship for our goods. The ship owner gives us the entire ship for a voyage or for a specified period. This is called Charter Party.

BILL OF LADINGA document of title whereby the carrier aacknowledges receipt of specified goods onboard the ship for to place of destination on payment of freight on the terms and conditions stated therein.It is receipt of goods by ship owner or his captain or agent.It is evidence of Contract of Carriage.It is not a Contract of Carriage in itself.Bills of Lading Act 1856 lays down the law.

KINDS OF BILLS OF LADINGClean BLClaused BLThrough BLReceived for Shipment BLShipped BL

Mates Receipt.

CHARACTERISTICS OF BOLEvidence of receipt of goodsDocument of TitleTransferabilityParticularity of DestinationLease of shipNo right of Stoppage in Transit

CHARTER PARTYA contract under which the ship owner agrees to place the entire ship or a substantial part of it at the disposal of the shipper for carriage of goods on a particular voyage or for a specified time for a consideration called freight. It amounts to lease of the ship. Control of the ship passes to Charterer. Charterer becomes temporary owner of the ship. Master and crew follow instructions of Charterer. Charter becomes liable for third party claims.

KINDS OF CHARTER PARTYTIME CHARTER PARTY- A contract under which the ship owner places the ship at the disposal of the Charterer for fixed period of time and renders services through his own crew and employees. Charterer becomes temporary owner of the ship. Fuel, stores and crew is provided by ship owner. Master and crew follow instructions of Charterer.

KINDS OF CHARTER PARTYVOYAGE CHARTER PARTY- A contract under which the ship owner places the ship at the disposal of the Charterer for cariage of full cargo or part cargo to named port/s of destination on mutually agreed terms and rates. Fuel, stores and crew is provided by ship owner. Master and crew follow instructions of shipowner.

KINDS OF CHARTER PARTYVOYAGE CHARTER PARTY- A contract under which the ship owner places the ship at the disposal of the Charterer for cariage of full cargo or part cargo to named port/s of destination on mutually agreed terms and rates. Fuel, stores and crew is provided by ship owner. Master and crew follow instructions of shipowner.

KINDS OF CHARTER PARTYDEMISE CHARTER PARTY- This is Demise or lease of a ship.This is acquisition of the entire ship for an agreed period by the Charterer.Fuel, stores and crew is provided by Charterer. Master and crew follow instructions of Charter and are his employees. Charterer becomes owner of the ship.

UNLIMITED COMPANYThe liability of its members would be unlimited so that they can be called upon to pay to the full extent of their fortunes in order to meet the obligations of the company.

GUARANTEE COMPANYIts capital is limited by guarantee so that each member undertakes to be liable to pay the debts of the company up to a certain amount in case of winding up.

LIMITED LIABILITY COMPANY Registered with a share capital divided into shares held by shareholders whose liability is limited to the face value of the shares held by them.

PRIVATE COMPANYA company which by its articles of association, restricts the right to transfer its shares, limits the number of its members to 50, prohibits any invitation to the public to subscribe for any of its shares and debentures. The name of every private company must end with the words Private Limited.

PUBLIC COMPANYA company which is not a private company and whose membership is open to public.

PRIVILEGES OF PRIVATE COMPANY1.Only two signatories to the memorandum are sufficient to form a private company.2.It can commence allotment of shares before the minimum subscription is subscribed or paid.3.It is not required to file a statement in lieu of prospectus as it is not allowed to issue a prospectus to the public. 4.It need not offer further shares first to the existing shareholders under Companies Act.5.A private company may commence business immediately after incorporation.6.It is not required to hold the statutory meeting and file the statutory report.7.It may issue any kinds of shares and allow disproportionate voting right.8.A private company need have only 2 directors.9.Its director can vote on a contract in which he is interested.

CHARACTERISTICS OF PUBLIC COMPANYMinimum number of members is 7 and no limit on max number of members.Have minimum of 3 Directors.Directors have to file consent with registrar.Can invite capital from public.Company shares are freely transferable.Total managerial remuneration limited to 11% of profit.Can issue Preference & Equity shares.

FORMATION OF COMPANYPROMOTERSPersons wishing to form a company.

PROMOTIONProcess by which a company is brought into existence as a corporate body.(Incorporated)

FLOATATIONFinancially established by issue of prospectus. (Public Coy).

FORMATION OF COMPANYPROMOTERAny one assuming primary responsibility for matters relating to promotion of company is called Promoter. Any individual, syndicate, association, partnership, or company which takes necessary steps to create and mould a company and set it going.May get remuneration but no profits at company expense.

COMMENCEMENT OF BUSINESSPRIVATE COMPANYAfter obtaining certificate of incorporation.

PUBLIC COMPANYMin subscription allocated.Directors qualification shares taken & paid for.Statutory declaration and the prospectus or statement in lieu filed.