How does Liability Arise?

Liability may arise as a result of Common Law, Contract Conditions or as a result of Statute.

Common Law - this will be in the form of a Tort - the carrier or other bailee may be liable under bailment or negligence

Contract - this will be by the conditions incorporated into a legally binding agreement between the carrier and the owners of goods. Many contractual conditions will restrict the carrier's liability to that which arises as a result of their negligence but some carriers will accept a wider liability such as those who contract under 'All Risks' conditions

Statute -- Legislation - UK legislation may enact various International Conventions such as the Carriage of Goods by Road Act 1965 - CMR Convention Carriage of Goods by Sea Act 1971 -- Hague Visby Rules.

A carrier engaged in the international movement of goods by road or sea may find that they will have to conform to one of the above Statutes which will be imposed upon the Contract of Carriage. Such a carrier may not even by agreement under contract restrict in any way his liability to less than that which is set out in the relevant Act.