Nobody downloaded yet


Comments (0) Cite this document
A letter credit promises that if the buyer denies payment, the buyer’s bank will make obligatory measures for payment. Letters of credit…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful
Read TextPreview


Download file to see previous pages p570) . A letter of credit instrument is generally issued by a bank against two types of bills, they are demand bills and usance bills (Massood, A. 2008).To decrease the credit risk to sellers in both domestic as well as foreign trade practice is the most important purpose of letter of credit.. When a bank issues a letter of credit in favor of a customer, it surrogates its creditworthiness for that customer (Borcky. R. 1999).
There are two types of letter of credit; they are standby letter of credit and documentary letter of credit. Documentary letter of credits can again be categorized into revocable and irrevocable. The revocable letter of credit is particularly rare in usage. Irrevocable letter of credit can be confirmed or unconfirmed letter of credit. Every type of letter of credits has its advantages as well as its disadvantages for the buyers and sellers. The charges of each type of letter of credit may vary according to its characteristics. The more the bank assures payment, higher will be the charges of it (Borcky. R. 1999).
Without an agreement between the concerned parties, an irrevocable letter of credit cannot be cancelled before a particular date. A revocable letter of credit can be changed anytime without previous discussions by the bank which issues it. A confirmed letter of credit includes backing by the issuing bank and its correspondents promising payments of all drafts. At the same time an unconfirmed letter of credit will not have any guarantee that the bank will make payments on drafts in case of non payment from the buyer. A stand by letter of credit is a conditional obligation by the issuing bank that it will make payment to the chosen beneficiary if the banks client fails to execute as per the terms of the contract (Letter of credit. 2009).
Letters of credit are more or less separate transactions. They are totally different from bank guarantees. The ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“INTERNATIONAL TRADE LAW Essay Example | Topics and Well Written Essays - 2000 words”, n.d.)
INTERNATIONAL TRADE LAW Essay Example | Topics and Well Written Essays - 2000 words. Retrieved from
(INTERNATIONAL TRADE LAW Essay Example | Topics and Well Written Essays - 2000 Words)
INTERNATIONAL TRADE LAW Essay Example | Topics and Well Written Essays - 2000 Words.
“INTERNATIONAL TRADE LAW Essay Example | Topics and Well Written Essays - 2000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


International Trade Law

...? International Business Law In the Official Journal of the European Union published in October 2009, the European Union (EU) declared a ban on trading in products made from commercial hunting practices of the marine animal, the seal. This regulation threatened to adversely affect the trade of Canada and Norway, two of the world’s leading countries in the commercial seal hunting practice. Expectedly, Canada and Norway lodged vehement protests against the ban. In November 2009, Canada requested to sit for a consultation with the European Union regarding the issue. Within three days, Norway also followed with a similar request. This paper attempts to trace the major points of the Dispute relating it to the laws of the World Trade... of...
9 Pages(2250 words)Assignment

International trade law

...for the merchandise at that time, the burden was on the Dutch company company to show that they were entitled to the merchandise, therefore would bear the burden of the risk. The Parchim court found that the Dutch company was entitled to the merchandise, due the rule in f.o.b. contracts that the risk passes at shipping. There is another aspect to this question, and that is whether or not the parties had adopted International Chamber of Commerce Rules for the Interpretation of Trade Terms ("Incoterms"). If they explicitly adopted these terms, then this would supersede the Convention and English law, for the parties' agreement controls. Even if they did not explicitly adopt these terms, a...
15 Pages(3750 words)Essay

Since over 50% of foetuses survive when born at 24 weeks, the current law on abortion should be amended to reflect this

21 Pages(5250 words)Dissertation

International Trade Law

...1 INTERNATIONAL CONTRACTS (INTERNATIONAL TRADE LAW 2) Basic to the exportation and importation of products from one county to another is an organised, effective and regulated method of transporting these goods. Internationally accepted laws such as the Hague Visby Rules 1968 and the Hamburg Rules 1978 govern today's international trade transactions. Both laws also define the liabilities, duties and rights of the three parties in maritime trade i.e. shipper, the common carrier and the consignee. Both set up international rules for the carriage of goods by sea for the...
12 Pages(3000 words)Essay

International Trade Law Assignment

...Running Head: International Trade Law Assignment International Trade Law Assignment s International Trade Law Assignment The World Trade Organization is an international organization dealing with the global rules of trade between nations. It was created as a result of the Uruguay Round negotiations between 1986 and 1994. There are currently 150 members of the WTO with many more nations currently negotiating for membership. Headquartered in Geneva, Switzerland, the primary objective of the WTO is to help trade flow smoothly, freely, fairly and predictably. At its heart are the WTO agreements, negotiated and signed by the bulk of the worlds trading nations and ratified in their parliaments. At the apex is the Ministerial Conference... , with...
6 Pages(1500 words)Essay

International trade law

...Dissertation Proposal: The General Agreement on Trade in Services: A Threat to Democracy? Introduction: This section will introduce the background to the creation of the General Agreement on Trade in Services by providing a background to the Uruguay Round. The Uruguay Round consisted of a series of meetings among world leaders commencing in September 1986 in Punta del Este, Uruguay. The results of these negotiations and talks were knitted together in a final document containing 55o pages and signed by the ministers in 1994. 1 This part of the dissertation will also discuss the spirit and intent of the GATS which is essentially designed to create a reliable and credible system of guidelines for the...
3 Pages(750 words)Essay

International Trade Law

...Swarna Word count:2530 P.Swarnalatha ID # 5448 Order # 158109 23rd March 2007 International Trade Law Based on Trans-Oriented Marine Corp v. Star Trading and Marine , Inc 731 F. Supp.619(SDNY;1990) find, read and brief the Trans-Orient case and answer: : In 1983 Trans-Orient was granted a five-year exclusive agency agreement to represent the Sudan in the United States. Two years later, a military coup deposed the then head of state in the Sudan, declaring a state of emergency and suspending the constitution. A twelve-month transitional military regime followed, which was then replaced by a civilian coalition government. At that time, the name of the country was changed...
9 Pages(2250 words)Essay

International Trade Law

...International Trade Law Introduction Before being able to interpret or critically assessed Article XXIV of the General Agreement on Tariffs and Trade, an overview of the principles and other facts of GATT and the World Trade Organization (WTO) should be discussed in order to have a basis on what Article XXIV of the General Agreement on Tariffs and Trade (GATT) is all about. While the aforementioned GATT article pertains to customs unions and free trade areas, the statements within its provisions conform to GATT and WTO facts and principles. The General Agreement on Tariffs and Trade was created by the...
15 Pages(3750 words)Essay


... Transactions?’ International Review of Business Research Papers, .3 (2) June, Pp. 41 –53 Bolero, 1999, The Bolero Service: Business Requirements Specification, version 2.0, The Bolero Project, 9 Jan., available at accessed 27 December 2009 Clarke, D. 1999, ‘Wire News: Unclogging International Trade’, Wired, July, 8. D’Arcy, Murray and Cleave, 2000, DArcy, L, Murray, C & Cleave, B 2000, Schmitthoffs Export Trade: The law and practice of international trade, Sweet and Maxwell, London, U.K. Dixon Mark and Glasson Bernard, Electronic Payment Systems for International Trade, Klein, CH 2006, Letter of Credit Law Developments, Jenner... & Block LLP, Chicago, Il, USA. Geva, B. 1995, International Funds Transfers:...
10 Pages(2500 words)Essay

Private International Trade Law

...Running Head: PRIVATE INTERNATIONAL TRADE LAW Private International Trade Law No] Private International Trade LawQuestion 1: Critically discuss the implications of the chosen contract law for the parties, and deal specifically with these issues: • Which rules will the arbitrator apply as lex mercatoria? Will the arbitrator have to (or be able to) apply CISG as the UK is not a contracting party  Support your answer with references to judicial decisions and journal articles. You do not need to apply the conflict of law rules. Introduction International...
12 Pages(3000 words)Essay
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 INTERNATIONAL TRADE LAW for FREE!

Contact Us