Abstract
References
- Barnett, Michael / Isaacs, Michael, International Trade Finance – Letter of Credit, UCP 600 and Examination of Documents, Journal of International Banking Law and Regulation, 2007.
- Bergami, Roberto, What can UCP 600 Do for You?, Vindobona Journal of International Commercial Law & Arbitration, 2007. Chuah J.C.T, Law of International Trade, London 2005
- D’Arcy, Leo / Murray, Carole / Cleave, Barbara, Schmitthoff’s Export Trade: The Law and Practice of International Trade, London 2000.
- Dalhuisen Jan, Dalhuisen on International Commercial, Financial and Trade Law, Oregon (USA) 2004.
- Doise, Dominique, The 2007 Revision of The Uniform Customs and Practice for Documentary Credits, International Business Law Journal, 2007.
- Erdemol, Haluk, A Summary of Updated ISBP, DCInsight, July-September 2007, Volume 13, Number 3
Abstract
In international trade, mainly four payment methods are used, which are (i) open account (cash against goods), (ii) advance payment (prepayment), (iii) bills for collection (documentary collection), and (iv) letters of credit (documentary credit). These payment methods attempt to reconcile the conflicting economic interests of the parties involved in international transactions. The exporter (seller), on the one hand, would want fairly to obtain the purchase price as soon as possible, however, if the transport documents are documents of title to the goods, the exporter will not wish to part with these before having received payment, or at least confirmation that his draft has been accepted whereas the importer (buyer), on the other hand, would wish to postpone payment of the purchase price until the documents are no longer in the disposition of the exporter1. The main factors, determining which payment method will be used are trust
relationships between the parties, characteristics of the good, strength of parties in terms of negotiation, risk ratio of states in which parties domiciled or transaction to take place, cost etc.2
Keywords
References
- Barnett, Michael / Isaacs, Michael, International Trade Finance – Letter of Credit, UCP 600 and Examination of Documents, Journal of International Banking Law and Regulation, 2007.
- Bergami, Roberto, What can UCP 600 Do for You?, Vindobona Journal of International Commercial Law & Arbitration, 2007. Chuah J.C.T, Law of International Trade, London 2005
- D’Arcy, Leo / Murray, Carole / Cleave, Barbara, Schmitthoff’s Export Trade: The Law and Practice of International Trade, London 2000.
- Dalhuisen Jan, Dalhuisen on International Commercial, Financial and Trade Law, Oregon (USA) 2004.
- Doise, Dominique, The 2007 Revision of The Uniform Customs and Practice for Documentary Credits, International Business Law Journal, 2007.
- Erdemol, Haluk, A Summary of Updated ISBP, DCInsight, July-September 2007, Volume 13, Number 3
Details
| Primary Language | English |
|---|---|
| Subjects | Law in Context |
| Journal Section | Articles |
| Authors | |
| Publication Date | April 1, 2010 |
| Published in Issue | Year 2010 Volume: 16 Issue: 3-4 |