Accessibility Skip to Global Navigation Skip to Local Navigation Skip to Content Skip to Search Skip to Site Map

Articles for the keyword(s) "Proper law of the obligation"

“The Law Governing Letters of Credit”

Anthea Markstein, 2010

The author argues that the ‘rule’ that the same law should govern all contracts in a letter of credit transaction should be jettisoned in favour of an approach that seeks to achieve uniformity in the governing law only where such an outcome is supported by the parties’ commercial expectations. It is suggested that where commercial expectations do not support uniformity of governing law across all contracts, legal certainty and ascertaining the governing law most connected to the contract should be the paramount policy considerations. The author analyses three possible approaches as to how this may be achieved in the context of freely negotiable letters of credit.