INTERNATIONAL CONTRACTS ( INTERNATIONAL TRADE LAW) - Essay Example

Comments (0) Cite this document
Summary
It is arguable that some of the existing instruments do not meet users needs
The value of letter of credit transactions internationally are…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.9% of users find it useful
INTERNATIONAL CONTRACTS ( INTERNATIONAL TRADE LAW)
Read TextPreview

Extract of sample "INTERNATIONAL CONTRACTS ( INTERNATIONAL TRADE LAW)"

Download file to see previous pages is put at 6% works out to a staggering figure of the US$ 420 million per year3 A bulk of this amount represents cost of using the documentary letter of credit. About 30 % of the import trade of the U.S. is paid through this letter of credit mode.4 The percentage of six as the transaction cost is not a small amount. Major portion of this cost is attributed to the return or refusal of the bankers involved at various stages of the routing of the documents from the importing end to the exporting end for reasons of accompanying documents not complying with the descriptions stipulated in the governing letters of credit. Although the ICC 5 sponsored UCP 5006 of 1993 governing the handling of the letter of credit during the course of transactions between the importers and exporters has recently been simplified by the UCP 600 7 in 2007 for hassle free transactions, it is still inadequate to keep pace with the fast paced transactions in the wake of electronic commerce that has emerged during the last few decades. This paper seeks to highlight the various legal barriers that parties involved have to face in the documentation of the international trade, different modes of payments in practice including the documentary letter of credit and justify the need for a more favourable climate for documentation which can be more aptly called as negotiation of documents for collection of payments for goods and services supplied in the course of international trade.
This is the predominant type of mode of payment for international transactions for goods and services which the UCP 600 (formerly UCP 500) is entirely devoted to. The payment is collected through the party usually a bank or two corresponding banks trusted by the buyer and seller. The buyer’s bank is the issuing bank and the seller’s bank is the confirming bank. Since the buyer and seller come from different legal jurisdictions banks are invariably different enjoying the confidence of the respective sides i.e the buyer ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“INTERNATIONAL CONTRACTS ( INTERNATIONAL TRADE LAW) Essay”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1561336-international-contracts-international-trade-law
(INTERNATIONAL CONTRACTS ( INTERNATIONAL TRADE LAW) Essay)
https://studentshare.org/miscellaneous/1561336-international-contracts-international-trade-law.
“INTERNATIONAL CONTRACTS ( INTERNATIONAL TRADE LAW) Essay”, n.d. https://studentshare.org/miscellaneous/1561336-international-contracts-international-trade-law.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF INTERNATIONAL CONTRACTS ( INTERNATIONAL TRADE LAW)

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...
15 Pages(3750 words)Essay

International Trade Law: Palm oil as an economic savior

12 Pages(3000 words)Assignment

INTERNATIONAL TRADE FINANCE LAW

...concept of contract of sale is broader than that of English concept. As per U.C.C s.2-304(1), under a contract of sale, the value can be paid either in money or otherwise. Thus, under American law, a contract of barter is a contract of sale10. As per World Trade Organization (WTO), countertrade results in a distortion of the free trade process. Thus, it does not mirror the true value of transactions, or it is impossible to establish the true value of the products exchanged between nations. There exist a large number of unsolved issues with which the Codes and the GATT cannot interpret aptly as they were framed while...
12 Pages(3000 words)Essay

Documents in international trade contracts

..., 107–131. Bhagwati, Jagdish. Panagariya, Arvind. & Srinivasan, Thirukodikaval. (2011). Lectures on international trade. Cambridge : MIT Press. Birnie, Peter. & Boyle, Andrew. (2008). Basic documents on international law and the environment. Oxford: Clarendon Press. Branch, Alan. (2012). International purchasing and management. London : Thomson Learning. Brand, Ronald. & Flechtner, Harry. (2006). Arbitration and Contract Formation in International Trade. Journal of Law and Commerce, 239-245. Busch, Marc. (2007). Overlapping Institutions, Forum Shopping, and Dispute Settlement in...
3 Pages(750 words)Research Proposal

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...
12 Pages(3000 words)Essay

International Trade Contracts

.... In such an instance, P did not have the right to reject the documents. (5) Incoterms may basically be defined as a set of abbreviations for trade terms particular to international sales of goods and is primarily dependant upon the United Nations Convention on Contracts for the International Sale of Goods. It is not intended to replace sales of goods contracts or indeed, to be treated as a contract. Nevertheless and given that its purpose was the facilitation of international sales of goods, it has a fundamental bearing on sales contracts.21 A brief review of the purpose and function of Incoterms...
10 Pages(2500 words)Essay

LAW OF INTERNATIONAL TRADE

...) Cases and Materials on the Carriage of Goods by Sea. London: Cavendish Publication Limited. Richardson, J. (1999) Hague and Hague Visby Rules. London: Inform Publishing. Sellman, P. (2004) Law of International Trade, 4th EditionLondon: Old Bailey Press. Thomas, D. R. (1996) The Modern Law of Marine Insurance. London: LLP Ltd. Todd, P. (2002) Cases and Materials on International Trade Law. Sydney: Maxwell and Sweet. FURTHER READING Carter, J.W. (1993) `Party autonomy and statutory regulation – sale of goods,’ Journal of Contract Law, 6 (1993). Che, Y. and Chung, T. ...
14 Pages(3500 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

...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

Law of International Trade

...Question Law of International Trade Introduction: Law of International trade is the law relating to the exchange of resources, merchandise and service crossways across the nationwide boundaries or regions. Foreign exchange got its primary momentum from the trade revolution in the late 18th century and near the beginning of 19th century. In this case, Sammy bought 1000 tons of sugar from the shipper and three bills of lading were issued to “Samson or assigns”. Sammy decided to put up for sale of the 1000 tons of sugar to Benny and he provided Benny the first bills of lading. After that Sammy creates a...
10 Pages(2500 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 CONTRACTS ( INTERNATIONAL TRADE LAW) for FREE!

Contact Us