The consignment agreement is an agreement for good and valuable consideration as each party aims to achieve a material benefit: to the consignor the assets are sold and to the consignee the remuneration shall be paid.
The consignee must have full capacity to act because legal agreements with third parties are entered on his own behalf.
However, in some cases, the shipper is entitled to pay the demurrage stipulated by the shipping line when the consignee does not appears at the port of discharge .
According to the same principle, the shipper will also be responsible for the information related to the consignee at the port of discharge, as the original consignment/consignee/destination information was provided by the shipper.
Otherwise, the consignee
would be behind the prior perfected floating lien secured creditor.
The consignee is the party who shall attend the shipping carrier or its agents to accomplish the procedures required to deliver the cargo.
The Kuwaiti legislator has counteracted such indecent action in Article 175(2) of the Maritime Law, which declares the rights and obligations of the consignee, who committed to the terms of the B/L as owner of the consignments, and confirmed that once the consignee attends to the carrier holding the B/L, the consignee shall be obliged by the conditions of the B/L.
For example, the courts are divided on whether a consignment is a "sale or return" where the consignor had delivered the goods to the consignee
for a purpose other than resale.
In addition to higher labor expenses, consignees
that kept their warehouses and receiving docks open after normal hours would see increased heating, lighting, and security costs.
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