What contract governs the transportation of goods by sea?

• A. Carriage Contract: Governs the transportation of goods by sea
• B. Sales Contract: Sale of goods
• C. Insurance Contract: Insurance of cargo
• D. Employment Contract: Terms of crew employment

Answer: (A)

Carriage contract governs the transportation of goods by sea. It’s the agreement between the shipper and the carrier that sets the terms for moving cargo by sea, including freight, routing, loading and unloading responsibilities, and when risk and title pass. A bill of lading typically evidences this contract and acts as a receipt and document of title, but the underlying arrangement is the contract of carriage. A sales contract covers the sale of goods, not their transport; an insurance contract covers cargo insurance; and an employment contract covers crew terms.