In international trade, almost all documentary credits are expressed to be subject to the UCP published by the International Chamber of Commence. The reason for that is the long periods during which the cargo is in transportation and the location of the seller and the buyer in different countries, problems arose when it comes to payment, since a simultaneous exchange of goods for money is not possible. One of the most prevalent payment tools found in international trade is the Letter of Credit (L/C), also known as Documentary Credit (DC). In Harbottle v National Westminster Bank Ltd case, Judge Kerr LJ described its importance as “the life blood of international commerce”. Furthermore, L/Cs are particularly significant in cross-border transactions, as it is served as a payment method in occasions where the seller and the overseas buyer have no or limited history of cooperation. Therefore, they do not trust each other, as they are not sure of what to expect. Although L/Cs are an essential vehicle for companies to enlarge and grow internationally, international traders often experience difficulties to achieve the high documentary compliance required by many banks. Although the UCP is of almost universal application, it does not have the force of law in the UK, and has to be incorporated into the contract, which forms the basis of the credit. In the present work, a considerable note will be based upon two main issues. Firstly, on how do the Uniform Customs and Practice for Documentary Credits (UCP) 600 deal with the significance in letters of credit issued for international sale contracts with a partial reference to the autonomy principle through Article 5 and secondly, the effects of the UCP600’s attitude which results with t...
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...d. The fear comes to the fore when considering the possibility of the bank of not being able to claim reimbursement. If the buyer is insolvent the bank comprehends that, since its applicant has been bankrupt, it will never regain its losses even though it is required to honour the fraudulent documents because of the autonomy principle. Thus, the bank wants to hold in its possession only documents that recognize to be valid and accurate because only in this juncture the bank will have a greater certainty of reimbursement.
Works Cited
• McKendrick Ewan, Goode on, Commercial Law, 2010, ed.4th (Pengin Books 2010)
• Murray Carole & Holloway David & Timson-Hunt Daren, The law and practise of International Trade, 2012, ed.12th (Thomson Reuter UK Ltd 2012)
• Tood Paul, Bills of Lading and Bankers Documentary Credits, 2007, ed.4th (Informa London 2007)
Sweeney, B, O'Reilly, J & Coleman, A 2013, Law in Commerce, 5th edition, Lexis Nexis, Australia.
Trade has more similarities than differences across regions of the world for three major reasons similar good were traded, geographic location and culture/religion.
Because the manors supplied their own source of materials that were needed for community the society became self sufficient. Essential needs such as food, cloth, fuel, lumber, and other goods were produced from the land or animals. Consequently the few outside purchases made were things that weren’t grown on in that region such as salt and iron. Document 3 states, “International trade was carried on only to serve the demands of the wealthy, and it was largely in the hands of aliens [different peoples]—Greeks, Jews, Moslems. Local society made almost no use of money.’’ This shows that there was little need for international trade, those of the few who participated were meeting the demands of the wealthy. Also the trade heavily relied on people
Legal Studies Essay Joey Agerholm Exclusion clauses determine the liability of something that might go wrong within a contract. They are used by sellers as an attempt to avoid or limit their liability. The seller has the advantage over the buyer who must agree to the clauses to purchase the product/service. Because of the buyers disadvantage the court takes such cases, involving exclusion clauses, very seriously, and the content of the clauses are carefully interpreted. With the current Trade Practises Act and the Fair Trading Act the standard form of business contract is adequate and effective in protecting the buyer. The Trade Practise Act is the most effective legislation for the protection of the consumer. It implies to the following situations:- - “A promise by the seller that the buyer will become the owner” If a car dealer breaks a promise or part of a contract, for example that he has the right to sell a car, and the car is stolen then although the buyer will have to give the car back he/she will get her money back. - “ A promise by the seller that goods will fit the description supplied by the seller” In this case the buyer is protected if the seller makes a promise, which is a condition of the contract, describing the product, and when the buyer receives the product, it does not match the description. - “ A promise where the seller is made aware of the purpose for which the goods are required, that the goods will be reasonably fit for that purpose” This condition is implied when the buyer makes the purpose of the goods needed known to the seller, and the buyer then relies on the seller’s judgement in providing the correct product. For example it would not be reasonable if you made the seller aware that you wished to purchase something suitable for mowing the average suburban backyard and you were sold a tractor. - “A Promise that goods are of merchantable quality” According to this act a good is considered to be merchantable if they are suitable for the prospect for which other similar goods are sold, involving the description applied to them, the price and any other relevant information. This act does however does not protect the consumer if he/she has examined the product and missed any defects that should have been seen or if the seller made him/her aware of the defect prior to the purchase of the product.
This court decision, shows how in regards to checks, going to the maker to ensure that the check is credible can help to protect the holder or the HDC of such an item. This can help them in the future if the payee is found to be a thief, in terms of recovering lost money from either the payee or the maker. Finally, we are also able to gain our own individual opinions about how HDC works and how fair we may or may not see it, based on cases like this one or simply everyday life.
Academic Consortium on International Trade (2000) Letter to Presidents of Universities and Colleges. Available at: http://www.spp.umich.edu/rsie/acit/ [Accessed 1 April 2014]
Fair Trade is an organization that helps certify farmers get the right amount of money for their products. It was founded in 1992, the headquarters is in London, England, UK. Fair trade is a non profitable organisation. Without Fair Trade; the shops and the investors will get profit but the farmer won't. Fair Trade helps the farmers have a safe vision of the amount of profits they will get.
3. Dijck P. van, and Faber, G. (eds.), Challenges to the new World Trade Organization, 299-306 1996 Kluwer Law International
...useless car to a junk yard to recover some loss, but the difference of the re-sale of the junk-car would be a significant loss. Though there were no adequate assurances to the contract, anticipatory repudiation is the only probable remedy for Jack. However, the outcome would weigh on the predominant factor test, which is met because Tom is covered as a merchant because he is operating in his usual daily business, and Jack is the buyer. The sole purpose of the contract was for Tom to sell Jack a car, and for Jack to buy a car from Tom. The UCC, though less stringent than the statute of frauds, does effectively regulate commercial transfers allowing the free market to operate without diminishing the integrity of trade.
According to Article 38 of the 1946 Statute of the International Court of Justice, the Court shall apply “international custom, as evidence of a general practice accepted as law” in its decisions (Kritsiotis 123). In other words, the International Court of Justice cites customs as a formal source of law. According to Roberto Unger, author of Law in a Modern Society, customary international law is best defined as “any recurring mode of interaction among individuals and groups, together with the more or less explicit acknowledgement of these groups and individuals that such patterns of interaction produce reciprocal expectations of conduct that out to be satisfied (Shaw 72-73). In other words, customary international laws are primarily concerned with how and why sates behave in a particular manner. Customs derive from the behavior of states (state practice) and the subconscious belief that a behavior is inherently legal (opinio juris). Evidence of state behavior is documented in the decisions of domestic courts, international courts, and international organizations. Unlike treaty law, customary laws are binding on all states. Additionally, if a treaty derives from a custom it is also binding on all states. Some of the international court cases that have been instrumental in the development of customary international law include the Nicaragua v. United States case, the Anglo-Norwegian Fisheries case, the Scotia case, the Asylum case, the Paquete Habana case, and the Lotus case.
"Monopolies and Combinations in Restraint of Trade." U.S. Code Collection. N.p.: n.p., n.d. N. pag. Print. 28 Mar. 2014.
The Lex mercatoria was an international law of commerce governing the trades and disputes based on the customs and practices of merchants. By the nineteen century, the law of merchant was fully incorporated in the Common law, but the development of commercial law led to a conflicting mass of case law . Following the commercial community recommendations, European countries started to rationalized the commercial law by building codes . English law didn’t follow this path, but instead adopted a series of Act of Parliament focusing on specific area, such as Bills of Exchange Act 1882 and the Sale of Good Act 1893 . Finally, the rise of the consumerism forced the Parliament to recognize the separateness of certain commercial transaction and to adopted an interventionist approach that aimed to create a body of laws protecting consumers, such as the Unfair Contract Terms ACT 1977 and Consumer Protection Act 1987
The goods must also be paid for by various methods of payment to facilitate international trade. This essay aims to analyse the possible claims from our advising buyer G arising from other parties to the contracts involved in this transaction. The essay will also analyse the legal relationships of all parties created that their respective rights and duties may have in the transaction. In doing so, it will discuss sale of contracts on c.i.f.
Gilpin observed that the establishment of the World Trade Organization (WTO) on January 1, 1995 as the principal forum for trade liberalization marked the biggest reform of the international trading system since the end of the Second World War. In this paper, I will provide an analysis of the evolution of the international trading system from its inception as the General Agreement on Tariffs and Trade (GATT) to its incarnation as the World Trade Organization (WTO), taking into account the changing international economic environment and political realities.
18. Rugman, Alan M. and Collinson, Simon. International Business 4th Edition. Essex : Pearson Education Limited, 2006.