The Legal Defects And The Reach Of Shipping Guarantee

This treatise is on the 1etter of indemnity. The tit1e is A ReSearchon the 1ega1 DeIncts and deoPe Of the Letter of Indedity The 1etter ofindemnity is one of the conunon documents in shipping business. It has c1osere1ationship with the bi11 of 1ading because of its importance in so1vingthe prob1ems of the operation of bi11 of 1ading and ba1ancing between thequickness and safety of the business. However, there exist fierce disputesover its nature and va1idity. Proceeding from the basic princip1es ofmaritime and civi1 1aws, this artic1e, by referring to judicia1 andbusiness practice, ana1yzes the 1ega1 definition and characters of the1etter of indemnity. 1n this artic1e, the author suggestS that we 1ookinto the va1idity of the 1etter of indemnity one by one.This paper inc1udes four parts.First1y, the author expounds the function of the 1etter of indemnityby ana1yzing the particu1ar case, the basic princip1es of maritime andcivi1 1aw, and judicia1 practice.In the second part of this paper, the author points out the prob1emsand defects in applying of the 1etter of indemnity. Meanwhi1e the authorpresents her point of view that the 1etter of indemnity shou1d be annexedwith extra conditions. Its va1idity is very 1imited.The third part is the main body of this paper. First1y, this partdiscusses some methods and princip1es in distinguishing between va1id andinva1id 1etters of indemnity. The most important standard is todistinguish between 1etters of indemnity in good faith and ma1icious ones.Another app1ying princip1e is to distinguish based on the facts at theappointed time when the 1etters of indemnity was issued.The forth part discusses the two typica1 1etters of indemnity in5pursuing a detai1ed and workab1e ru1e to distinguish the 1etters ofindemnity. The two typical 1etters of indemnity inc1ude the letter ofindemnity issued for gaining c1ean bi 11 of 1ading and taking de1 ivery withcopied bi11 of 1ading in addition to the 1etter of indemnity.In the concluding remarks, the author reaches the conc1usion thatthe va1idity of the 1etter of indemnity is on1y limited to the two c1ientsof the letter of indemnity and doesn' t app1y to the third party. Fina11y,the author suggests that China stipu1ate c1ear1y to the va1idity of the1etter of indemnity in maritime 1egis1ation.