Nobody downloaded yet

Banks Deal with Documents and Not with Goods, Services or Performance to Which the Documents May Relate' (UCP 600, Article 5) - Essay Example

Comments (0) Cite this document
Summary
‘Banks deal with documents and not with goods, services or performance to which the documents may relate’ (UCP 600, Article 5). Critically Discuss in the Light of Relevant Case Law Introduction It is clear that international trade organizations have attempted to further develop the international trade system since the Bretton Woods Conference was convened in 1944.1 The reason for this is that international trade law regulates and covers a wide area of commercial transactions; for instance, commercial contracts, the sale of products, transportation of goods, insurance, finance and banking regulations…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.2% of users find it useful
Banks Deal with Documents and Not with Goods, Services or Performance to Which the Documents May Relate (UCP 600, Article 5)
Read TextPreview

Extract of sample "Banks Deal with Documents and Not with Goods, Services or Performance to Which the Documents May Relate' (UCP 600, Article 5)"

Download file to see previous pages Further risks are the economic climate in both the importing and exporting countries and the political stability of the countries, which affects the sale transaction and the degree of trust and confidence of each party in the other. As a result, banking regulations serve to lower or alleviate the risks that banks are exposed to and any disruptions and interruptions emanating from adverse economic and banking conditions. Additionally, banking regulations reduce the criminal risks to which banks are exposed, not to mention promoting and ensuring the confidentiality of banks.4 To reduce risks in international sales, in terms of the payment issue, the seller and buyer usually agree to settle through letters of credit. This essay seeks to explore Article 5 of the Uniform Customs and Practice for Documentary Credits (UCP 600) 2007, which reads as follows: “Banks deal with documents and not with goods, services or performance to which the documents may relate”. In fact, this Article is usually explored in regard to the letters of credit principles. Thereby, in the first part of this essay, the concept of letters of credit in the light of the UCP 600 will be revealed. Subsequently to that, the principles of letters of credit, which are autonomous and conform to strict compliance, will be discussed in the light of relevant cases. Finally, the way that fraud affects letters of credit will be examined in the light of relevant cases. 1. Letter of Credit and the UCP The importance of letters of credit to the current commercial society is evidenced by the many rules established to regulate and control its usage. These rules are called the Uniform Customs and Practice of Documentary Credits (UCP), which were created by the International Chamber of Commerce (ICC).5 Several commentators tend to accept this unification, such as Royston Goode, who describes it as “the most successful harmonizing measure in the history of international commerce”.6 In fact, the first version of these rules was drafted by the ICC in 1929. The rules were revised many times until the last version, UCP 600, was issued in 2007 and came into force on 1 July, 2007.7 Even though the UCP 600 regulates letters of credit, the legal status of these rules will not be considered binding until they are incorporated into the two parties’ contract, as it is mentioned in Article 1 of the UCP 600.8 Letters of credit, which are also known as documentary credit or banker’s commercial credit, is defined in Article 2 of the UCP 600 as “any arrangement, however named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honour a complying presentation”. According to this definition, a letter of credit has two characteristics. First, it is an irrevocable credit, which means that it cannot be amended or cancelled when it has already been communicated to the seller; under the previous UCP 500, credits could be ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Banks Deal with Documents and Not with Goods, Services or Performance Essay”, n.d.)
Banks Deal with Documents and Not with Goods, Services or Performance Essay. Retrieved from https://studentshare.org/law/1447797-banks-deal-with-documents-and-not-with-goods
(Banks Deal With Documents and Not With Goods, Services or Performance Essay)
Banks Deal With Documents and Not With Goods, Services or Performance Essay. https://studentshare.org/law/1447797-banks-deal-with-documents-and-not-with-goods.
“Banks Deal With Documents and Not With Goods, Services or Performance Essay”, n.d. https://studentshare.org/law/1447797-banks-deal-with-documents-and-not-with-goods.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Banks Deal with Documents and Not with Goods, Services or Performance to Which the Documents May Relate' (UCP 600, Article 5)

Health promoting Services

...? Literature Review Literature Review Health Promoting Health Services: A Review of the Evidence The ideaof health promoting hospitals and health services has existed for more than two decades. In addition, there have been virtually more than 650 hospitals and health services in the current World Health Organization involved in health promoting programs. Although this has been wide spread, little has been done in the field of health promoting programs in Australia. It should be noted that the key aim of HPH is to reorient health services away from the entire focusing on curative care towards more holistic health care that involves the idea of health improvement. This...
3 Pages(750 words)Article

Performance Appraisal : Peer Review

...observed to render great significance towards actively developing her skills on the aforementioned segments through participating in regular training courses as well as programs. Teamwork: 1 2 3 4 5 Considering the job responsibilities of a nurse, effective teamwork may enhance the quality as well as the care of the patients by a considerable level. In order to deliver proper clinical services to the patients for the purpose of improving their performances, it is quite necessary to build an effectual teamwork with every member belonging to multidisciplinary working teams. Hence, the virtues of teamwork attempt to enhance the ability of the team to respond instantly...
5 Pages(1250 words)Article

Financing Delivery of Healthcare Services

...?Financing Delivery of Health Care Services in Mexico Grade (13th, Oct, Financing Delivery of Health Care Services in Mexico Healthcare in Mexico is provided through three major avenues; namely the public institutions, the private health institutions and individualized care offered by private physicians. Therefore, there are varied sources of financing for healthcare in this country, which a Chief Financing Officer of a healthcare facility can rely on. This discussion seeks to address different methods of public and private healthcare financing in Mexico, with the aim of assessing their structures and how they can be improved to enhance efficiency of healthcare financing in the country. The current public...
6 Pages(1500 words)Article

Freedom of Goods of the European Union

...in terms of the exportation process. Though the importation process can be described as a complication process, due to the different provisions specially the restrictions involved, the EC Law on exportation is more complicated. This can be attributed to the fact that the European Community ensue national exportation restrictions. The rule makes the process of freedom of goods movement more complicated. Without any form of control, monitoring is a great challenge. But due to probable problems projected, discrimination of goods exported is then applied. This can be comparable to the importation restriction.5 As the importation law, there are different issues in...
8 Pages(2000 words)Article

Improving Patient Services Intitiative & Standards in a Community Services Program

...to achieve quality outcomes given budget restraints (Piette, Ellis, et al., 2002). Given its successful outcome, the methods of this study can serve as a basis for Walton Community Services to follow in the implementation of the proposed quality improvement project Research Study Review: Use of Internal Climate Survey To Determine Quality Improvement Lee & Howard (1994) determined in their study that while it seems that the gauge of performance in quality is external customer satisfaction, it is actually the internal customers’ (line workers, middle managers, etc.) perceptions about their organizations and work units. Total Quality Management refers to prevention of defective goods and...
5 Pages(1250 words)Article

Improving Team Performance

...Running Head: Improving Team Performance Improving Team Performance Article Critique Teams The article d as “Role of behavior and personality instruments in the improvement of team effectiveness in organizations” written by Suman (2009) investigates in detail the applicability of the behavior and personality assessment instruments in recruitment, selection, appraisal and organizations’ team effectiveness. It has been argued by the author that many of the organizations hire professional and competent personnel and even then they fail to develop competent teams. Critically analyzing this aspect one can come to the point that it is the personality indicators, the objectives being given to the teams, the leadership and most commonly... or...
3 Pages(750 words)Article

Module 5 Discussion Questions

...Module 5 Discussion Questions Module 5 Discussion Questions Module 5 DQ The healthcare field is in need of an industrial revolution. To reform medical care delivery, address the economic burdens which health care places on individuals and other businesses. In this nation, healthcare institution should have data which allows them to set up meaningful process reforms and improvements. Only through setting up computerized healthcare tools will hospitals be able to gather the essential data to care for their patients (McGlynn, 2010). The U.S. government and Medicare, in particular, must fund this endeavor and employ its purchasing power to make sure that the United States healthcare...
2 Pages(500 words)Article

INndividual Assignment 5

... Social Media and Marketing With the rise of the internet as a strongly influential media format, many companies have started using it to their advantage. It is a win-win situation since it could reach to a wider audience and is relatively cost-effective as compared to other methods of advertising such as the use of billboards or television ads (Botha 84). Numerous people go online for just about everything, and this includes social interaction as well as sales, even more than those that go to watch television or go out driving, which makes online advertising much more flexible and inclusive of audiences. Products and services can be spread to others through status posts and pictures, thus the advertising companies get the benefit... by...
1 Pages(250 words)Article

Discussion 5

...Neuropsychological Questions Cognitive Deficits associated with depression Deficits in the episodic memory: Episodic memory is the memory associated with events that occur in an individual’s life that is based on a person’s experiences and specific objects, people, and events. A depressed person experiences a reduced level of this memory as s/he cannot remember the autobiographical events with enough clarity. The level of depression is proportional to how much the memory is affected (McDermott & Ebmeier, 2009). Deficits in sematic memory: Semantic memory deals with the ability of one to remember general facts about the world. A person experiencing depression losses the ability to use his long term memory about facts in the world... for...
2 Pages(500 words)Article

Supervising Banks Liquidity

...Supervising Banks’ Liquidity Is a Pain for Regulators In September 2008, the financial crisis brought about the downfall of Lehman Brothers. Due to this unfortunate downfall, other banks, such as Germany’s Hypo Real Estate and Britain’s Northern Rock, were guaranteed through central bank and government intervention would be able to withhold enough money to continue operation of their banks after their money dries up and their customers come looking to take out their money. In Switzerland, a meeting was undergone consisting of others that would due well to figure out how to avery an identical situation. While bank chiefs and regulators formed new rules...
2 Pages(500 words)Article
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Banks Deal with Documents and Not with Goods, Services or Performance to Which the Documents May Relate' (UCP 600, Article 5) for FREE!

Contact Us