Class 1 (Chief Engineer) Engineering Management 📅 Jan 2025

Exam Question

(a) Explain contractual liability and liability under tort with examples. (5)

(b) Explain the difference between legal liability and strict liability. (5)

(c) Different entities in the transportation chain of cargoes like containers, dry and liquid bulk are exposed to different liabilities. Identify these entities and their liabilities and explain as to how these risks are insured. (6)

Reference Answer

### (a) Contractual Liability and Liability under Tort
**1. Contractual Liability**
* **Definition**: Contractual liability arises from the breach of a specific promise or term within a legally binding agreement between two or more parties. The liability is confined to the parties of the contract.
* **Basis**: The foundation of this liability is the contract itself. In the maritime sector, common contracts include the Bill of Lading, Charter Party (Voyage, Time, or Bareboat), and Contract of Affreightment.

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