Kingsland plc, a company registered and based in England, entered an FOB sales contract to buy 100 tonnes of calcium hydroxide, Ca(OH)2, commonly called slaked lime from Zandhoven nv a company registered in the Netherlands. The calcium hydroxide was described as being Chemical Raw Materials grade, ≥ 96.5% and therefore should have been suitable for the production of chemical raw materials.
The calcium hydroxide was sourced from China and was packed there in tonne bags, which were stuffed by Zandhoven nv into containers hired by Kingsland plc from the carrier. The carrier, Alvinne Shipping operates a Liner Service between the Netherlands and the United Kingdom, a service that includes road haulage.
Kingsland plc financed the sale through documentary credit provided by the City of London Bank, which released finance once notified that the goods were onboard the nominated vessel, the Walewein. Prior to arrival of the cargo in the UK, Zandhoven nv delivered the following documents to Kingsland plc: a straight bill of lading and a certificate of analysis confirming that the calcium hydroxide was Chemical Raw Materials grade, ≥ 96.5%.
When it arrived at Kingsland plc’s premises, the calcium hydroxide was found to be Common grade ≥ 90-93% and partly contaminated with petrochemicals commonly found in marine fuel. Advise Kingsland plc on the following:
a) Any potential claims against Zandhoven nv and or Alvinne Shipping.
b) Potential routes for resolution of any claim identified in part a) together with the likely remedies available through those routes.
c) Whether marine insurance might offer it a route to compensation.
You may presume that all contracts were subject to English law and that all claims arising under them shall be brought before the High Court of Justice in London to the exclusion of the jurisdiction of the courts of any other place.
Your answer should be supported by references to sources of the law and any relevant commentary on it.