The UCP 600 introduced some welcomed changes from the previous version, UCP 500. However, it has failed to regulate the problem of fraud in documentary Letter of Credit transactions. Discuss and critically consider with reference to the common law and the UCP.

LAW OF INTERNATIONAL TRADE

Assessment Instructions/Question
The assessment question paper will have TWO compulsory questions. The student will have to answer two compulsory questions, ie the student will have to answer Question One (worth 50% of this assessment) and Question Two (worth the other 50% of this assessment).

The TWO questions are as follows:

Question 1
The UCP 600 introduced some welcomed changes from the previous version, UCP 500. However, it has failed to regulate the problem of fraud in documentary Letter of Credit transactions.

Discuss and critically consider with reference to the common law and the UCP.

Question 2
Foresure Ltd, a British engineering company, agrees to sell precision designed metals to Ikram PLC in Tahriristan, a newly independent state outside of Europe. Tahriristan has a civil law legal regime rather than a common law legal regime. Ikram PLC does not have a place of business in England.

The contract was negotiated and signed in London. The price was payable in US dollars and due on delivery of the goods to Ikram PLC in Tahriristan. The contract provided that any dispute arising out of the performance of the contract should be submitted to the Tahriristan courts at the behest of Ikram PLC.

When the goods were delivered to Ikram PLC, they were alleged to be of inferior quality to those requested by the buyer. Foresure Ltd deny this and claim Ikram PLC are merely attempting to leverage a lower price for the metals. Foresure Ltd has major doubts about allowing the dispute to be heard in the courts in Tahriristan