The independence principle of letters of credit and demand guarantees by Nelson Enonchong

Cover of: The independence principle of letters of credit and demand guarantees | Nelson Enonchong

Published by Oxford University Press in Oxford, New York .

Written in English

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Subjects:

  • Letters of credit

Edition Notes

Includes bibliographical references and index.

Book details

StatementNelson Enonchong
Classifications
LC ClassificationsKD1735 .E56 2011
The Physical Object
Paginationxxxv, 348 p. ;
Number of Pages348
ID Numbers
Open LibraryOL24868958M
ISBN 100199239711
ISBN 109780199239719
LC Control Number2011922688
OCLC/WorldCa617637959

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The Independence Principle of Letters of Credit and Demand Guarantees offers a comprehensive and authoritative analysis of the principle of independence, a fundamental element of Letters of Credit and Demand Guarantees. It examines the key issues involved in the practical application of this principle and the increasing exceptions to it, including a detailed account of the Cited by: 2.

The Independence Principle of Letters of Credit and Demand Guarantees offers a comprehensive and authoritative analysis of the principle of independence, a fundamental element of Letters of Credit and Demand Guarantees.

It examines the key issues involved in the practical application of this Price Range: £ - £   The Independence Principle of Letters of Credit and Demand Guarantees by Nelson Enonchong,available at Book Depository with free delivery : Nelson Enonchong.

Overall, the book provides readers with sound understanding and with a complete analysis of the independence principle of Letters of Credit and Demand Guarantees.

* Gabriel Gomez Giglio, Journal of International Banking Law and Regulation * The size of the book (only pages) is a tribute to Professor Enonchong's ability to deal succinctly.

The Independence Principle of Letters of Credit and Demand Guarantees offers a comprehensive and authoritative analysis of the principle of independence, a fundamental element of Letters of Credit and Demand Guarantees.

It explores the parameters of this principle and the increasing exceptions to it. The Independence Principle of Letters of Credit and Demand Guarantees Nelson Enonchong.

The first work to focus on the important autonomy principle relating to both letters of credit and demand guarantees; Considers the extent to which exceptions to the principle are, and should be, permitted.

The Independence Principle of Letters of Credit and Demand Guarantees offers a comprehensive and authoritative analysis of the principle of independence, a fundamental element of Letters of Credit and Demand Guarantees. It examines the key issues involved in the practical application of this principle and the increasing exceptions to it, including a detailed account of the rules in this area.

Buy The Independence Principle of Letters of Credit and Demand Guarantees by Nelson Enonchong from Waterstones today.

Click and Collect from your local. Nelson Enonchong, The Independence Principle of Letters of Credit and Demand Guarantees. Law and Financial Markets Review: Vol. 7, No. 3, pp. The latest book by Professor Nelson Enonchong, The Independence Principle of Letters of Credit and Demand Guarantees () has recently been published by Oxford University Press.

The book examines the nature and scope of the cardinal principle of autonomy of both letters of credit and demand guarantees. Beginning with an elementary account of the law of Letters of Credit and Demand Guarantees, the following chapters guide practitioners on the parameters of the Independence Principle.

It will discuss the limitations of the principle, and assess whether new exceptions should be introduced. The Independence Principle of Letters of Credit and Demand Guarantees Nelson Enonchong It examines the key issues involved in the practical application of this principle and the increasing exceptions to it, including a detailed account of the rules in this area.

A number of practical implications and issues can arise in the daily functioning of independent (first demand) guarantees and standby letters of credit. Bank Guarantees in International Trade provides a comprehensive, highly readable study of the legal and practical aspects and implications of these instruments, broadening the reader s Author: R.

Bertrams. Independence Principle ((d)) “Rights and obligations of an issuer to a beneficiary or a nominated person under a letter of credit are independent of the existence, performance, or nonperformance of a contract or arrangement out of which the letter of credit arises or which underlies it, including contracts or.

as a matter of law. Broader sanctions clauses defeat the independence principle in letters of credit and demand guarantees, the exclusively documentary nature of the instrument, and create uncertainty. payment under demand guarantees and letters of credit have been attacked (and sometimes even prevented) in the English, American and South African courts.

It will be shown that the prospect of success depends on the law applicable to the demand guarantee and letter of credit, and the approach a court in a specific jurisdiction takes.

An exception may sometimes act to destroy the independence of the letter of credit “ and to relieve the issuer of the letter of credit from its obligation to pay the beneficiary”, 3.

with the effect as a defence to the non-payment under the letter of credit. Fraud seems to be a well-recognised exception to the principle of autonomy. 4 It has. (c) “Counter-guarantee” means an undertaking given to the guaran­ tor/issuer of another undertaking by its instructing party and providing for payment upon simple demand or upon demand accompanied by other docu­ ments, in conformity with the terms and any documentary conditions of the.

English law vigorously upholds the principle of autonomy in relation to letter of credit (LoC) and demand guarantee transactions, as demonstrated in a number of recent cases.

Only where there is fraud will English courts provide relief from paying out against an otherwise complying presentation or demand. A bank guarantee, like a letter of credit, guarantees a sum of money to a beneficiary.

The bank only pays that amount if the opposing party does. The Independence of Demand Guarantees, Performance Bonds and Standby Letters of Credit. terms of the credit or guarantee the bank has to pay, and if the documents do not correspond to the requirements, the bank must not pay.

However, over the years a limited number of exceptions to the autonomy principle of demand guarantees and letters of credit have come to be acknowledged and accepted in practice. In certain circumstances, the. demand guarantee that is & standby LC unparalleled, Lena practice exemplifies the best practices in this field and embodies the principles described in this book.

Lena is a Global Product Specialist in Guarantees and Standby Letters of Credit at SEB. She is a member of the European Advisory Council for the. With reference throughout to the effect and significance of the Uniform Rules for Demand Guarantees (URDG) of the International Chamber of Commerce, International Standby Practices (ISP), and the UNCITRAL Convention on Independent Guarantees and Stand-by Letters of Credit, the author continuously elucidates the way guarantees function in actual Reviews: 2.

What is the independence principle. The relationship of the buyer and the bank is separate and distinct from the relationship of the buyer and seller in the main contract; the bank is not required to investigate if the contract underlying the LC has been fulfilled or not because in transactions involving LC, banks deal only with documents and not goods (BPI v.

De Reny Fabric Industries, Inc. 14 Enonchong, N. e independence principle of letters of credit and demand guara n-tees. Oxford Univ ersity Press. e documentary na ture of demand guarantee s and the doctrine of.

: Bank Guarantees in International Trade:The Law and Practice of Independent (First Demand) Guarantees and Standby Letters of Credit in Civil Law and Common Law Jurisdictions () by Bertrams, R. and a great selection of similar New, Used and Collectible Books available now at great prices.

payment undertakings namely; commercial letters of credit and demand guarantees A demand guarantee is often a brief and very simple instrument issued by a financial institution under which the obligation to pay to a beneficia ry a stipulated amount of money (either fixed or not) arises only when a demand for such payment is made in the.

The Independence Principle of Letters of Credit and Demand Guarantees offers a comprehensive and authoritative analysis of the principle of independence, a fundamental element of Letters of Credit and Demand Guarantees.

It examines the key issues involved in the practical application of this principle and the increasing exceptions to it. Fairness at the Expense of Commercial Certainty: The International Emergence of Unconscionability and Illegality as Exceptions to the Independence Principle of Letters of Creditand Bank Guarantees.

The Independence Rule in Standby Letters of Credit In modern commercial transactions, various devices are used to ensure performance by the contracting parties.1 One of the more frequently used devices is the letter of credit. Two Essential principles about Letter of Credit From the technical review, there are two essential principles when people use letter of credit as the transaction way.

The first one is the principle of independence, which is clearly indicated in Art. 3 of UCP ; another principle is strict compliance, which is described in Art.4 of UCP   The independence principle has long been reflected in the Uniform Customs and Practice for Documentary Credits (the UCP), a compilation of internationally accepted banking customs and practice regarding letters of credit promulgated by the International Chamber of Commerce in and revised periodically thereafter.

While the UCP is not law. Title: The Development of the Fraud Rule in Letter of Credit Law: The Journey So Far and the Road Ahead Author: Ross P. Buckley & Xiang Gao Created Date. Be able to manage demand guarantees and standby letters of credit. Assessment Criteria: *Apply appropriate rules and trade terms that govern demand guarantees and standby letters of credit to the management of demand guarantees and standby letters of credit.

*Check accuracy of demand guarantee and standby letter of credit documents. The principle of independence of demand guarantees and standby letters of credit Author: Xu, Zhongxin ISNI: Awarding Body: University of Cambridge Current Institution: University of Cambridge Date of Award: Availability of Full Text.

the practice of bank guarantees and stand-by letters of credit will be discussed. Bank Guarantees and Stand-by Letters of Credit: Development and Sources A.

DEFINITIONS Bank guarantees and stand-by letters of credit are fairly recent bank products. A bank guarantee can be described as a personal security under which a bank promises payment to.

The most important legal principle governing letters of credit is the independence principle. That is what gives the letter of credit its commercial utility. The essence of a letter of credit is that the issuer must honor drafts that comply with the terms of the letter irrespective of any disputes between the applicant and beneficiary regarding the underlying contract between them.

Central to letters of credit, this stands for the idea that the obligation of an issuing bank to honor a drawing request under a letter of credit is independent of the transaction that the letter of credit supports.

When deciding whether to make a payment, the issuing bank is concerned only with the terms of the letter of credit and the documents presented by the beneficiary.

This book is the first to provide an extensive analysis of the range of defences to payment under letters of credit and demand guarantees. It considers the extent to which different defences undermine the abstraction of these instruments.

This is a fundamental issue, since letters of credit and demand guarantees are designed to be abstract, or. Claims payable on demand. No investigation period. We immediately reimburse landlords upon default (as defined by the lease) Strong credit protection.

All bonds are issued by investment grade insurance carriers (rated AM Best Excellent or higher) Bankruptcy remote. All bonds benefit from the same independence principle as a letter of credit.Guarantee The documentary credit serves as a guarantee.

This means that one or more banks, in the event the credit is confirmed, issue an independent undertaking. The banks promise to pay a certain amount provided that the documents stipulated in the documentary credit are presented and comply. (Please see The Independence Principle below.A Letter of Credit, also known as LC or Documentary Credit, is a commonly used instrument for effecting payment between a buyer and a seller.

It can be a vital part of mitigating a seller's risk of payment in either international trade or domestic business.

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