International Business Law Coursework Example | Topics and Well Written Essays - 4000 words

International Business Law - Coursework Example ..he stands in any legal or equitable relation to the adventure or to any insurable property at risk therein, in consequence of which he may benefit by the safety or due arrival of insurable property, or may be prejudiced by its loss, or by damage thereto, or by the detention thereof, or may incur liability in respect thereof.6 Pursuant to Section 6(1) of the Marine Insurance Act, interest will attach when the insured has an interest in the â€Å"subject-matter insured at the time of the loss†.7 The interest need now exist at the time the insurance contract is formed.8 Therefore as long as the insured has an interest in the subject-matter at the time of the marine adventure, the insured is entitled to claim damages. It therefore follows that Linda has an insurable interest since the insurance contract was specifically underwritten to protect her against damages to her cargo. Since Linda’s insurance policy applies the Institute Cargo Clause A, â€Å"all risks of loss or damage to the subject-matter† is insured.9 All risks is a potentially broad phrase and can include any loss that the insured can prove was a result of an accident of an event without having to proves the particular of the accident of event resulting in the loss.10 It is sufficient for the insured to demonstrate on a balance of probabilities that the damages were a result of perils at sea that are not ordinarily experienced.11 This is important because all Cargo Clauses contain an exclusionary clause which prohibits recovery of damages in circumstances where damages are caused by ordinary perils at sea.12 Another feature of the Cargo Clause A as well as Cargo Clauses B and C is the transit clause. The transit clause covers all damages surrounding the voyage at sea which includes transfer from the warehouse, loading and all interim transport of the goods until they reach their final destination.13 Thus far, it would appear that Linda has full coverage since she adopted the Carg o Institute Clause A. However, there is one problem that might undermine, Linda’s ability to enforce the insurance contract. Clause A, like Clauses B and C contains a War Exclusion Clause and unless removed, Linda is bound by the War Exclusion Clause.14 When war clauses provide coverage in a marine insurance contract damages can be recovered for: War, civil war, insurrections, revolutions, rebellions, civil strife related to any of these situations, hostile episodes relative to a hostile authority. Capture, arrest, restraint, seizure, detention (relative to risks associated with war or categories of war) or attempts to commit any of these acts. Torpedoes, mines, bombs or other military weapons.15 Based on the facts for discussion it is uncertain whether or not Linda’s marine insurance policy specifically covers war and the incidents typically included when an exclusionary War Clause is deleted from the Institute Car