International Shipping

Oriental Manufacturing Ltd. is suing International Shipping Ltd. For damages to a return shipment that had outer container breakage and soiled with an oily substance that had permeated the interior of the cardboard boxes. The inner sealed aluminum bags were also covered with the oily substance. Oriental did not attempt to open the bags to determine damage to the computer chips they contained.

Under Article 77 of CISG, Oriental would have been required to undertake reasonable measures to minimize loss to satisfy the duty to mitigate (Risnik, 2009). Under Article 77 Oriental would not be able to recover loss that could have been avoided if reasonable steps could have been taken. The principle of good faith suggests no compensation for avoidable loss. Where Oriental made no attempt to open the aluminum bags, there is no evidence of damage to the computer chips.

Under the Carriage of Goods by...
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