International Trade Law

International Trade LawThis article consists of 14 pages and 4000 words. In order to have full access to this article, email us at thedocumentco@hotmail.co.uk

Ref No: 1928

International Trade Law

Introduction:

This assignment is divided into two parts, which covers international trade law from two main perspectives. The first question covers the letters of credit, a document that plays a huge role in the domain of international trading. It discusses the principles of letters of credit in general, as well as from the viewpoint risks that it carries, especially fraud exception. Moreover, this question will discuss the famous and much publicized English case of United City Merchants vs. Royal Bank of Canada and aims to critically evaluate the principles of letters of credits in accordance with the case. Besides that, the question one will also highlight the contribution this leading case made by redefining and revising the principles of letters of credit. The second part of the assignment aims to discuss the provided cargo situation, the position of a buyer in the provided situation, as well as the CIF contract, its shipping rules, and regulations and critically evaluates the CIF contract while keeping the cargo situation in mind.

Question 1: “Letters of credit are described as the life blood of international commerce in United City Merchants (Investment) Ltd v Royal Bank of Canada (The American Accord) [1982] 2 QB 208 at p 222. With the above quotation in mind, critically examine the principles of letters of credit by referring to case law and international law.”

Classification of Letters of Credit:

When thinking of letter of credit, it seems like it is a document that refers to the verification of one being creditworthy of something. But it’s not the case at all. There is no doubt that letter of credit holds a very high position in the world of international trade and commerce. By definition, it means a document that is issued by the third party that has guaranteed or guarantees the reimbursement for services or goods when their respective seller provides the acceptable documentation. Letter of credit can be issued by different companies such as creditworthy financial service providers, mutual funds or insurance companies. But, mainly it is used by the bank or other entities like financial institutions. To speak legally, it can be issued by any entity and doesn’t necessarily require to be issued by the bank. Other companies or entities besides bank can only issue a letter of credits in certain circumstances. Only, if it is permitted or advised by the bank to issue. In terms of international trading, as mentioned earlier they have a huge importance but it a must for letters of credit to align with the rules of “Uniform Customs and Practice for Documentary Credits” of ICC….