Maritime Law

This is a group work. and is divided into 3 parts. i only need to parts to be done as the 3rd part will be done separately. all 3 parts are to be combined to from one assignment. please only do part 1 and 2. as all assignment. the table of contents are the usual. please start with issue and end with a conclusion leaving part 3 empty and introduction. please look at uploaded file. Please also refer to all applicable rules.

The Question
The Facts:
Sellers Smashgrabitrun, based in Zombystan, entered into two contracts for the sale of 50,000 bags of Thai white broken rice in bulk to the buyers Luna Sea Importers. The contract used was GAFTA 122 “Shipment of Rice in Bags” amended to C & F terms. The shipment to take place not later than April 28, 2013, payment to be against a letter of credit on production of “shipped” bills of lading and other documents as per the contract at the buyer’s bank. The buyers had contracted to resell the goods to other merchants in Zombystan.
Each contract was headed “C & F full outturn weight” and except for the quantity shipped they were on similar terms. The goods were to be shipped cost and freight liner terms Zombystan. The contracts provided inter alia clauses:
Clause 4: The Rice to be at Buyers’ risk from warehouse to warehouse and they engage to effect Marine Insurance . . .
Clause 5: Sellers to deliver the rice overside and Buyers to take the rice. . .in accordance with conditions of Charter-Party (or Bills of Lading if no Charter Party) from ship’s side . . .
Clause 6: The Rice at time of shipment:
Price: USD$9.50 cost and freight liner terms Zombystan in bulk. . .full outturn weight at port of destination. . .
Payment: In Zombystan as per Letter of Credit on arrival of vessel at port of destination but not later than forty five days after Bill of Lading date. Documents to consist of Bills of Lading, certificate of quality/condition/fumigation/origin/moisture content certificate .
Remarks: Quality, condition fumigation final at time of shipment as per certificate independent surveyors . . .
Packing: Net 50 kgs/bag
Shipment: As per Bill of Lading dated 20-28 April 2012, landed quantity at contract price.
Dispute Resolution: Arbitration Clause London.
Other clauses: English jurisdiction, Incoterms 2010, UCP 600 and The Hague Visby Rules were expressly incorporated.
Smashgrabitrun voyage chartered The MV Vitamin Sea to carry 30,000 bags of rice under contract 1. The cargo was loaded under a Bill of Lading dated on board April 18 2014. This consignment of bags was commingled with another shipment of rice. The MV Vitamin Sea had suffered two breakdowns of the main engine on the previous voyage. The ship had once been detained for two days by a Port State Control authority whilst defects in the engine room had been rectified. There was reason to suspect the competence of the Chief Engineer.
On the voyage to the discharge port the ship’s main engine broke down again and the MV Vitamin Sea drifted ashore on the coast of Moria on June 6, 2014 becoming a total loss.
Smashgrabitrun also voyage chartered The MV Autopsea, which had her own cranes to work cargo. The 20,000 bags of rice from contract 2 were shipped on the 30 April. The rice was stored with other general cargo including cured beef, rice, coconut oil and smoked fish. This consignment was also commingled with a large shipment of 40,000 bags of rice. Two containers were also filled with the bags and carried on deck. Although some of the bags of rice appeared to be damaged the master was persuaded not to clause the Bill of Lading with remarks about the damage by the offer of a letter of indemnity from the seller.
The contracts contained a rider clause stating the buyers can initiate a letter of credit in favour of the sellers for 95 per cent of the contract value. One of the conditions of the credit was that moisture content should be 12-14 per cent and if below “rejectable at buyer’s option”. The sellers accepted the wording of the letter of credit.
On May the 6th Smashgrabitrun presented Bills of Lading to the buyer’s bank purporting to show that shipment under both contracts had been made between April 20 and 25.
The International Bank received instructions from Luna Sea Importers to open a confirmed credit in favour of Smashgrabitrun covering the cargo of “Thai white broken rice” loaded on the MV Vitamin Sea and the MV Autopsea. The bank opened the credit and notified Smashgrabitrun that it was available against invoice and bills of lading for “Thai white broken rice.” Smashgrabitrun presented bills of lading for “Asian rice” accompanied by an invoice for “Thai white broken rice.”
The bank paid the price even though they recognised some discrepancies with the documents. In fact words in the bills of lading relating to the date of shipment had been forged by the seller’s forwarding agents at the port of loading after the issue of the bills of lading. The buyers subsequently discovered that the bills of lading had been forged. During the voyage to the discharge port the two containers were washed overboard. On arrival at the discharge port the authorities refused to allow the MV Autopsea to use the ship’s cranes, instead the cargo was unloaded manually by stevedores. As a result the unloading took six days longer than planned. When the cargo was unloaded it was discovered that there was damage to many of the bags and there was a discrepancy between the Bill of Lading figures and the outturn quantity of two hundred bags, even taking into account the cargo washed overboard.
Owing to the late shipment of the goods the buyers lost their contract for resale in Zombystan. They had to sell the goods shipped on the MV Autopsea at a loss because of a serious fall in the market price in Zombystan. In addition the cargo discharge report by the surveyor stated “moisture content 8 per cent, 25 Kgs bags, cargo received with mild odour, bags torn damaged and evidence of salt water damage.”
Working in groups of three you are required to provide a report giving a detailed analysis of this chain of events and suggest what legal options are available to the parties and the likely outcome, giving reasons. Your answer must be supported by reference to international conventions, national laws, decided cases and industry practice.
One person will be allocated to each of three sections in the assignment, the writer’s name must be written alongside the section heading. Once the assignment has been handed in each group will discuss and answer questions on their section of the assignment, and their overall contribution to the work, at the tutorial. Below is a suggested method of dividing the work between the group, you can use these section headings or whatever headings you wish. The introduction and summary must be a group effort.
1. The application of the Hague Visby Rules to this scenario and likely outcomes
2. The charter and Bills of lading
3. The Letter of Credit, the seller, buyer and bank
Although the three sections are to be written individually the report, as a whole, needs to be written and read as a single piece of work. This will require the group as a whole to work together to edit and amend their individual work so that it appears to have been written by one author.
Marks: Marks will be apportioned on the basis of 70% for the individual work and 30% for the group work.

please do the first and second part only. 1100 words each.