On Several Issues Relating To Application Of Law To The Contract Of Carriage Of Goods By Sea

In the contract of carriage of goods by sea, several parties locating in different countries are involved, therefore the issue of applicable law to the contract is complicated and the disputes on application of law frequently arise. Up to now there are still a great deal of conflicts of law existing in this area. To resolve the conflicts of laws certain rules are developed, among which, the rule of party autonomy, the rule of closest connection are commonly used. The jurisdiction clause and arbitration clause in bill of lading also have great impact on the proper law of the bill of lading.The practice of the parties to a contract of carriage of goods by sea choosing the law applicable to the contract can maintain the stability of the legal relationship and facilitate the immediate settlement of the disputes. The rule of party autonomy has become the top rule for selecting the proper law for the contract and is widely and adequately utilized in charter party upon which very few countries impose applicable laws. As for the law application clause in bill of lading, it is still a controversial issue as to its validity since some people argue this clause does not conform to the rule of party autonomy.If parties to a contract do not expressly or impliedly choose the applicable law, the proper law for the contract should be constructed through the rule of closest connection. This paper states the proper law for various kinds of contracts of carriage of goods by sea based on the rule of closest connection.The choice of law for bill of lading is quite different from that for charter party. This paper explores the validity of jurisdiction clause and arbitration clause in bill of lading as well as the incorporation of charter party arbitration clause in the bill of lading which are controversial both in legal theory and judicial practice. At the end, the paper points out loopholes in the current maritime legislation and suggests making supplementary regulations in this area.