THE HARVARD ESSAY TEMPLATE

Road transport is a key factor in the growth of any economy. The ever rising need for
road transport compels the involved parties that are the sender, receiver, and the carrier to create
a binding legal relationship. CMR offers for the authentication of an agreement of carriage by
way of a consignment note, though such a document is not necessary to the execution of such a
legal contract (Glass, Marlow&Nair, 2010, 347). A consignment note is a written document
regarding the transport of goods by road. The consignment note declares the contract of carriage
and comprises the orders given to the carrier and evidence of the contract of transportation.
Article 4 of the CMR conditions that the agreement of carriage shall be inveterated by the
drafting of a consignment note. Nevertheless, the absence, indiscretion or loss of the
consignment note shall not affect the existing validity of the agreement of carriage, which shall
remain subject the requirements of this contract.
The CMR contracts do not necessitate any precise form for the contract of transportation
(Thorpe, 1998, 591). Nevertheless, Article 4 of the CMR does call for the issue of a consignment
note, which acts as a receipt for the goods in transport and used as an indication of the contract of
carriage (Goode, Kronke, McKendrick & Wool, 2012, 476). All the same, the consignment note
has no part as a document of title in agreement with Article 1section 5 of the CMR. Since the
contract period of the carriage is short, it is commonly well thought-out removing any need to
sign the consignment note the role of representing the goods (Glass, Marlow&Nair, 2010, 348).
The agreement applies irrespective of the residence and the nationality of the involved parties.
The Convention is also applicable where the carriage is carried out by states or by governmental
institutions or organizations.
The consignment note also constitutes an indication for the presence of the transport contract,
terms and conditions of the agreement and reception of the goods by the carrier in respect to

Consignment Notes 3
Article 9 of the CMR (Goode, Kronke, McKendrick & Wool, 2012, 478). Once a carrier accepts
goods attached to a consignment note, it is assumed that the goods and their packaging were in a
good state when the transporter took them over. The assumption is of course based on the
inclusion of relevant information regarding the number of packages, their marks, and figures
agreed with the declarations of the consignment note (Clarke, 2014, 169). The consignment note
makes for a crucial document of evidence about claims by either the sender or the transport agent
regarding the carriage contract. As such, it plays an enabling role in proving of such claims
(Glass, Marlow&Nair, 2010, 356). This particular function is facilitated as the consignment note
has the purpose of verifying enactment and the content of the transport contract if not determined
otherwise. For the consignment note to act as a legal document and evidence that can be
presented in court, it shall be signed by the sender in the presence of the carrier.
All the same, the CRM can act as a legally binding document. First, the consignment note
can serve as evidence that the contract of carriage has been completed between the sender and
the carrier within the scope of the CMR (Jung, 1997, 148). Further, it can be regarded as proof
concerning the content of the agreement. Secondly, a consignment note that has been signed by
both the sender and the carrier can be considered as an accurate reflection or as a receipt for the
goods being transported (Mohseni & Safavi,2014). Moreover, the consignment note is used as
proving that goods whose quantity, type and coding, specified in the document arrived at the
carrier and that the goods were in perfect condition during the delivery unless the carrier includes
a reservation clause in the consignment note. The CMR consignment note does not differ much
from others related documents. However, it has the CMR insurance advantage to the sender of
the cargo, for which the sender will not have to pay anything extra. As such, when damages
occur to the load during transportation, the carrier is held liable.

Consignment Notes 4
Although the consignment document has a proving effect, it can be made void if the
carrier has stated a valid and acceptable reservation on the consignment note by Article 8. Article
8 enforces a responsibility on the carrier to check the goods and enter reservations about their
quantity and condition as observed (Hamdan, 2013). It states that the carrier shall check whether
the products condition is in agreement with the records presented in the CMR consignment note.
In case the carrier detects lost or broken goods, then the carrier shall impose a reservation on the
CMR consignment note according to the observations made. If no reservation is stated on the
consignment note, then, it shall be approved that the goods were presented to the carrier in the
perfect state, and if any damage occurred to the goods after they were safely delivery to the
carrier in good shape, then it is the carrier’s liability. Nevertheless, the content of the
rationalization relating to the stated reservations primarily relies on whether the carrier indicates
either the impracticality of scrutinizing the goods, referred to as reservations out of ignorance or
out of finding a tangible deficiency in the goods.
Article 8 Section 2 provides the carrier with a chance to avoid the assumption stated in
Article 9 by indicating reservations in the consignment note if the transporter is unable to
accomplish the duty to check the goods to be transported. In this case, the reservation provided
on the consignment note shall be considered as a justified exclusionary clause provided the
reason is indicated. Article 8/3 spreads the scope of the assumption to the contents of the
commodities. It can be argued that the extent of the carrier liability agreed under Article 9/2 in
the CMR articles can be extended within the context of the obligation about the scrutiny stated
under Article 8/1-b as ‘external state of the possessions and packing thereof.’ The term
‘condition’ as regards this clause on properties in an organization refers to details that can be

Consignment Notes 5
quickly exposed as a consequence of the cautious inspection performed externally or using an
appropriate instrument.
Lack of the fulfillment of the obligation enforced on the carrier by Article 8/1 shall not
result in liability for breach of the agreement of carriage. Nonetheless, it has the potential of
affecting the burden of evidence in cases of damage or loss. However, the carrier may be liable
for failure to bear defects that may have been detected if the transporter had made the required
checks as recommended by Article 8 (Quigley, 2006, 4). The liability is not for the breach of
Article 8, but the violation of the fundamental obligations that carrier bears under Article 17.
The limits on the responsibility in the case of damage to or loss of the goods imposed by
Article 23 may result from the contract in two ways, as regulated by Articles 24 and 26, subject
to agreement by both parties (Кулинская, 2013). In the first instance, under Article 24 of the
CMR, is that there exists an affirmation by the dispatcher that the value of the specified cargo
surpasses the limit which would then apply. The worth is the actual value of the properties fixed
by Article 23/2. The agreement related to the growth of the limit of liability must be affirmed
within the consignment note for it to be valid (Кулинская, 2013). The consignment note has an
initiator effect to the proliferation in the threshold of accountability as a result of the related
declaration.Thus, it is often said that the consignment note serves as a protective and admonitory
function for the carrier. Consequently, any party that alleges that there is no contract on the
increase in the limit of liability, despite the accompanying declaration in the consignment note,
bears the burden of proof.
Article 24 has a unique relationship to Article 4. The section offers that ‘the absence,
anomaly or damage of the consignment note will not affect the presence or the validity of the
contract of carriage’ (Schelin, 2004, 181). Thus, the set limit of the accountability of the carrier

Consignment Notes 6

can not be increased or reduced due to loss or a declaration in the consignment note.
Nevertheless, Article 24 is not applied to the damage or loss of the goods resulting from the
delay (Clarke & Yates, 2013, 364). The second instance in which the limit of accountability may
be raised, controlled by Article 26, is that of the assertion by the dispatcher that he has a
particular concern in the arrival of the goods in harmony with the agreement. If the sender
declares a special interest of that kind, then there can be a claim for significant loss. This type of
loss is a kind for which the carrier would not be liable, such as a damage of value at arrival, a
case not anticipated by either Article 23 or Article 24 (Clarke & Yates, 2013, 392). By Article
26, the sender may, after the payment of a supplementary fee to be agreed upon, decide to fix the
amount of particular interest in delivery. Payment is made in the case of damage or loss of the
agreed time limit is exceeded. In entering such amount on the consignment note and the explicit
assertion of particular interest in the carriage has been made, recompense for the added loss or
damage verified may be demanded, up to the total sum of the interest declared, independently of
the compensation provided for in Articles 23, 24 and 25.
The contract may raise the limits on liability in case of delay imposed by Article 23 in
two cases, and only if both parties decide. The first instance, where the delivery note has founder
effect as regulated by Article 26, is that of a statement by the sender that he has a special interest
in the arrival of the goods by the contract. Conversely, in the case of a delay, the purpose of
Article 26 is different from its meaning in the event of loss of or damage to the goods. In the
occurrence of a delay, the limit of the obligation of the carrier might be raised to the worth stated
in the consignment note (Кулинская, 2013). The CMR offers in Article 34 that if the carriage by
road is controlled by a single agreement but accomplished by consecutive road carriers, as far as
the successive carriage is considered and as the universal view in transportation laws there is

Consignment Notes 7
only a single consignment note. In this instance, each carrier is to be held accountable for the
fulfillment of the whole task, the second and consecutive carriers becoming a part of the contract
of carriage under the terms of the consignment note. Their reception of the goods is viewed as an
agreement to the provisions of the bill.
Article 34 necessitates the consignment note to allow that the succeeding carriers know
that the load is subject to the CMR and their condition, the state of the goods, the content of the
consignment note and any other reservations as indicated. The consignment note is vital and
required for the consecutive carriers to know the conditions of the carriage. As previously stated,
by acceptance of the possessions and the consignment note, each carrier becomes a party to the
agreement of transport under the conditions provided by the records (Clarke, 2014, 175). These
arguments show that the consignment note has a paramount role in the CMR particularly in its
evidentiary purpose regarding the obligation of the parties and protecting the interests of the
parties to an agreement of carriage. In detail, the parties to the contract of transportation for
global transport may not understand the prominence and the need for a consignment note
compatible with the terms of the CMR.
The carrier usually finalizes the form, but the sender or exporter holds responsibility for
the accurateness of the facts, and must sign the form when the goods are collected. The
consignee will also sign the form on the delivery, which is vital for the hauler to be able to
confirm the conveyance of the property and to justify the payment for its services. The inference
arising from this study is that it is imperative to draft an apt consignment note regarding global
transport by road to have an efficacious and problem-free carriage and to exclude unwanted
results for both the sender and the carrier.

Consignment Notes 8

References

Clarke, M.A., 2014. International carriage of goods by road: CMR. CRC Press.
Clarke, M.A. and Yates, D., 2013. Contracts of carriage by land and air. CRC Press.
Glass, D.A., Marlow, P.B. and Nair, R., 2010. The use and legal effects of carriage documents in
international multimodal transport. International Journal of Shipping and Transport
Logistics, 2(4), pp.347-363.
Goode, R., Kronke, H., McKendrick, E. and Wool, J., 2012. Transnational commercial law:
international instruments and commentary. OUP Oxford.
Hamdan, N., 2013. International Carriage of Goods by Road (CMR). Available at SSRN
2276618.
Jung, C., 1997. Convention on the Contract for the International Carriage of Goods by Road
(CMR): Survey, Analysis and Trends of Recent German Case Law, The. Unif. L. Rev. ns,
2, p.148.
Mohseni, S. And Safavi, S.H., The “Consignment Note” In The CMR Convention.
Quigley, I., 2006. Freight Carrier’s liability under CMR Convention 1956. Acta economica
Pragensia, 2006(4).
Schelin, J., 2004. CMR liability in a law and economics perspective. Scandinavian Studies in
Law, 46, pp.175-190.
Thorpe, L.J.J., 1998. Carriage by road/CMR/Consignment note/Whether requirement of
consignment notes precluded CMR applying to long term contracts for unascertained
goods. LLOYDS LAW REPORTS, 2, pp.585-599.
Кулинская, Д.Ю., 2013. Limitation of the carrier’s liability (according to CMR Convention).