Guide to Writing Argumentative Essays in Health Care First Aid for Your Essay

Guide to Writing Argumentative Essays in Health Care First Aid for Your Essay What is an Argumentative Essay in Health Care Studies? To begin with, the notion of an argumentative essay refers to the type of written assignment, which implies the presentation of two different perspectives regarding a certain issue. In general, an argumentative essay should contain a few arguments and counterargument. In an attempt to prove the accuracy of the primary arguments, it is necessary to provide relevant evidence against an opposing argument. The opposing argument is considered to be one of the most important parts of an argumentative essay, which is regarded as a ‘rebuttal.’ Such type of written assignment has a common structure in various disciplines, including Health Care. Similar to other disciplines, an argumentative essay in Health Care should have an introduction, several body paragraphs, a conclusion, and a list of references. The only thing is that the topic of an argumentative essay should be related to the field of medicine. Common Topics for Argumentative Essays in Health Care Sometimes, college educators assign their students a task to write an argumentative essay on a specific medical issue. In turn, students are frequently given a chance to choose any interesting topic to create an effective academic paper. Choosing a topic for an argumentative essay is one of the key stages of writing an academic paper. Below you can find a list of effective research topics, which are dedicated to health care matters. Argumentative Essay on Abortion. At present, the issue of abortion is one of the most widely discussed medical issues since it raises numerous concerns in modern society. This particular topic involves a broad range of different aspects, such as religious perspective, ethics, and legality. The Link Between the Plastic Surgery and Emotional Well-Being of an Individual. Many researchers in the field of medicine claim that people’s increased interest in plastic surgery demonstrates a significant psychological crisis of modern society. In this case, it would be a great idea to write an argumentative essay and prove that individuals should see a psychologist before they think of getting plastic surgery. Autism Spectrum Disorder Cannot Be Regarded as a Learning Disability. Even though autism spectrum disorder is frequently associated with learning disabilities of children, this particular health disorder refers to a set of different psychological behaviors affecting their perception of information. The Availability of Birth Control for Women in The United States. This topic is also widely discussed by modern researchers, politicians, and medical scientists. Since the accessibility of birth control pills raises numerous concerns in modern American society, it would be a good option for writing an effective essay. Childhood Immunization should be Mandatory. The issue of childhood vaccination is also discussed by medical researchers because it is a great concern for modern parents. Even though the majority of scientists believe that childhood vaccines are safe for infants, many parents have certain fears about side effects of immunization. Acupuncture: Safety Effectiveness. The following interesting research paper topic is acupuncture, which is a common form of complementary medicine. Since this particular medicine technique is different from traditional methods of therapy, it can be a good option for writing an effective research paper. Meditation and Its Benefits for the Mental Health of an Individual. Finally, many people across the globe are interested in yoga and meditation; hence, you can select this topic and evaluate the effectiveness of this mindful practice. Pre-Writing Tips and Strategies Step 1. Selecting an effective research topic. The first step to writing a research paper is to get acquainted with the topic of a paper. If you are not required to write a research paper on a specific topic selected by a professor, you have an opportunity to choose the issue related to the field of medicine, which is interesting for you. In this case, try to choose the issue that is already known for you. If you have some background knowledge about the selected topic, you will have better chances to write an A+ research paper. Step 2. Choosing a position you would like to advocate. Since you are required to write a persuasive essay, you will certainly choose a controversial research topic, which is widely discussed among medical researchers, politicians, and average citizens. In this case, you have to choose a certain position regarding the selected social problem and convince readers to change their views. Step 3. Finding credible sources for a research paper. Since your argumentative essay is related to the field of health care, it is considerably important to provide credible and reliable sources supporting your arguments. These sources may include books, articles, medical reports, and scientific studies, which can be found in different medical libraries and websites. Among them, one can find The National Library of Medicine, Dana Medical Library, PubMed, MedlinePlus, and many others. Step 4. Creating an effective essay outline. First of all, an outline is a great tool that can help you organize all important ideas to be included in a persuasive essay. Hence, it should contain the following parts of an essay: an introduction, several body paragraphs, and a conclusion. Do not forget to include a thesis statement in the first part of your outline. Step 5. Creating a draft of an argumentative essay. While working on your research paper, try to organize all your ideas and write the first draft of an effective argumentative essay. In this case, you are recommended to use the completed outline. Outline of an Argumentative Essay In order to provide a good example of an essay outline, it is necessary to choose a specific topic. In this case, we will create an outline on the topic ‘Childhood immunization should be mandatory.’ I. Introduction a. Background information regarding the issue of childhood immunization. b. Thesis statement: ‘Childhood immunization should be mandatory since this particular medical procedure can help modern parents prevent their children from different viruses, infections, and other health-related issues.’ II. Main Body A. Main argument: ‘Many modern researchers are certain that childhood immunization is a considerably important for children’s health since these procedures enhance their immune systems, and as a result, prevent numerous illnesses.’ a. The list of illnesses that can be prevented by vaccination. b. The safety and effectiveness of childhood immunization. B. Counterargument: ‘Some parents believe that vaccinations are unsafe for their children, and hence, they refuse to vaccinate their kids.’ a. The potential side effects of childhood immunization. C. Rebuttal: ‘Even though some people do not agree to vaccinate their children because of their concerns regarding the safety of vaccines, modern scientists in the field of medicine have already proved the safety and effectiveness of this particular medical procedure.’ a. The recent statistical data on the safety of vaccination. III. Conclusion a. Thesis restatement. b. Summary of the main points of the paper. General Structure of an Argumentative Essay Introduction In the first section of an argumentative paper, the writer should provide the main idea of the entire paper. Since our topic is related to the importance of childhood immunization, it is important to provide some background information regarding this issue. Having provided the details of this issue, you should not forget to write an effective thesis statement at the end of the paragraph. Some examples of thesis statements, correct and incorrect ones, you can find below. Incorrect: ‘Childhood immunization should be mandatory because of its positive effects on children’s health.’ Correct: ‘Childhood immunization should be mandatory since this particular medical procedure can help modern parents prevent their children from different viruses, infections, and other health-related issues.’ The first example of a thesis statement is incorrect since this sentence is too general. Even though the writer mentioned the idea of the research paper, it is not clear how childhood vaccination influences children’s health. To make a thesis statement consistent, it was necessary to mention all the positive effects of childhood immunization. Main Body Since you are to write an argumentative essay, you should acquaint your readers with both sides of the selected issue. Hence, your paper should include the three main elements: argument, counterargument, and rebuttal. In the first part of the main body, you have to write some arguments, which support the idea of mandatory childhood immunization. For instance, you can provide a list of severe illnesses, which can be prevented using vaccination. To support your argument, you can refer to the article, which is published on the Centers for Disease Control and Prevention website. In the following part of the main body, you have to present the opponents’ claim regarding the idea that childhood immunization should be mandatory. In this case, you can find some information about the different side effects of modern vaccines. Since you support the idea of mandatory childhood immunization, this particular counterargument should be refuted. In order to refute this claim, you can provide recent statistics ensuring that modern vaccines are not only safe but also effective for children. Conclusion A conclusion is the following important part of an argumentative essay. In this particular section, you have to provide a brief summary of the key arguments, which were introduced in a paper. Additionally, do not forget to restate your thesis statement using different words. Post-Writing Tips and Recommendations 1. Finish your argumentative essay and relax. Having finished an essay, you are recommended to put the paper aside for some time and relax. Indeed, it is important to get some distance from the completed paper since you will not be able to proofread it effectively. 2. Then, take some time to edit your argumentative essay; try to use the following tips: Check the content of your argumentative essay. Firstly, the content of your essay should meet all the requirements given by the professor. Ma e sure that your claims are accurate and consistent; the arguments should be clear and relevant. Finally, all the arguments presented in the paper should be supported by reliable evidence. Check the structure of your argumentative essay. Your argumentative essay should contain an appropriate introduction and an effective conclusion. The important thing is that these parts of an essay should contain less than 200 words. Check whether your paper has a strong thesis statement. Make sure that each body paragraph has a close relation to the thesis statement, which is an important part of the paper’s introduction. Eventually, check whether a conclusion restates a thesis statement in different words. Pay attention to the clarity and style of your argumentative essay. In this case, you have to check whether you have written an argumentative essay using a persuasive tone. Besides, since your paper is focused on a specific topic related to the field of health care, you should ensure that you have explained all the medical terms, which can be found in your argumentative essay. Check the accuracy of paper format. In general, modern researchers recommend students to write an argumentative essay in health care using APA style. However, sometimes, you can be asked to use other paper formats, such as MLA, Chicago, and Harvard. Hence, check whether your paper format meets the initial instructions. 3. Finally, you should proofread the completed argumentative essay. Try to detect grammar and spelling errors in your argumentative paper. In this case, you can use different grammar checkers, such as Grammarly, Grammarix, and Language Tool. However, you should not rely on these online applications since they tend to work with a limited number of grammar rules. That is why you are recommended to reread the completed paper and try to find some grammar errors. Check whether your paper has some punctuation mistakes. Even though punctuation errors seem to be inconsiderable, a few mistakes will affect your grade. Make sure that your argumentative essay is plagiarism-free. Plagiarism is a serious academic offense, which can cause numerous negative consequences, such as failing a course and expulsion. To check your paper for plagiarism, you can use a great number of applications, which are available online. Among them, you can find The Bibme Plus, Citations Machine Plus, PlagScan, and many others. â€Æ' References Argumentative Essay Patterns and Structure. Edusson, 2019, https://edusson.com/blog/argumentative-essay-patterns-and-structure. Accessed 5 June 2019. Editing and Proofreading. The Writing Center, 2019, https://writingcenter.unc.edu/tips-and-tools/editing-and-proofreading/. Accessed 5 June 2019. Kearney, Virginia. How to Write an Argumentative Essay Step by Step. Owlcation, 2019, https://owlcation.com/academia/How-to-Write-an-Argument-Essay. Accessed 5 June 2019. What Is an Argumentative Essay?. Purdue Online Writing Lab, https://owl.purdue.edu/owl/general_writing/academic_writing/essay_writing/argumentative_essays.html. Accessed 5 June 2019. Why Are Childhood Vaccines So Important?. Centers for Disease Control and Prevention, 2018, https://www.cdc.gov/vaccines/vac-gen/howvpd.htm. Accessed 5 June 2019.

IT and Entrepreneurship Essay Example | Topics and Well Written Essays - 1750 words

IT and Entrepreneurship - Essay Example The Nielson Norman Group undertakes its programs and processes in line with computerized user interfaces. Such programs enable the company to bear the ability to provide consultation to clients from the firm. The Group’s success is evident since the company has built an overwhelming range of clientele in the global market since its foundation back in 1998. The following discussion seeks to highlight the prospective of intranets with various evaluation approaches to assert the fact that the programs do not necessarily provoke learning and inspirations (Collins, 2010, p, 130). Discussion of the features to build in an organization’s intranet the different intranet services seem to comprise of different features depending on the main purposes of their improvising. Each of the learning intranets was purported by its innovators as a certain approach to solving learning and problems. Distinctively, global enterprises realize that the social media is part of the community and may not fade out despite the pre-existing challenges Green, et al 2011, p, 90). Technical surveys implore organizations to abide in the use of social media holding that it is the most appropriate method from restructuring organization’s performances and building effective teams through the imposition of knowledge of the personnel and management. Experts have the notion that collaborative communication through the internet is certainly a useful course in all enterprises operating on a global platform. The effective nature of intranets is viewed as implicit to the gradual changes that are presumed to exist in organizations. This change is certain since there is enough and unprecedented evidence that functionality will shift gradually from the current prospects for the organizations’ advantages. The fact that intranets exist in different versions, the enterprise community of the society has a significant range to choose the intranet approach in accordance to the performan ce portfolio. Ideally, I-Space intranet provides learners with provident knowledge for use in ensuring organizational development and prowess in performances. Mainly, the I-Space intranet service provides various knowledgeable aspects ranging from the provision of public knowledge to the ideology of enhancing common sense (Collins, 2010, p, 133). A detailed survey undertaken by the Norman Group asserts that the intranet survey phenomenon comprises of the aspects of codification and diffusion of reading materials, a factor that is defined as the public knowledge approach. On the second account, the intranet approach ascertains to its users that they will accrue proprietary knowledge through its intriguing provision of patented entities, official secrets, and other critical information sources. The intranet approach asserts that users seeking proprietary knowledge shall find that its lack of diffusion despite the codification as an ethical barrier to provision of security on the perti nent materials. Lastly, the account provides employees and other concerned stakeholders seeking information with personal knowledge whereby codification and diffusion equally lack thus; guaranteeing users to sort out for any information related to their needs. I-Space accounting approaches assert knowledge on common sense, the type of information that all people have knowledge about their existence. However, the service is extremely diffused and without codifications thus enabling any

Business economic Essay Example | Topics and Well Written Essays - 1750 words

Business economic - Essay Example Thus, a double-dip recession occurs when the GDP rises to positive levels (the recovery period) followed by negative levels (another recession) (Quiggin, 2010). It is often referred to as the â€Å"W-shaped† recession (Quiggin, 2010). One of the most prominent double-dip recessions took place in the 1980’s in the United States (Appendix 1) (Quiggin, 2010). Two recessions occurred in the 1980’s in the United States. Initially, the economy shrunk by 8%, then grew at 8% after which the economy dipped into the second recession due to the Federal Reserve’s policy to raise interest rates to curb inflation (Quiggin, 2010). Following that, the economy re-entered into growth for the rest of the years (Quiggin, 2010). Although, there are no definite characteristics that define a recession, there are a few symptoms that are generally agreed by economists. First is the inverted yield curve model which was determined by Jonathan H. Wright which uses 10 year yield of Tr easury Securities as an input (LaBonte et al., 2010). Second, is the change in unemployment rate over a three month period (LaBonte et al., 2010). Third, lower prices of assets including real estate and financial assets as well as large personal and corporate debts (LaBonte et al., 2010). ii) The contraction in Ireland’s economy was of particular significance at a time when other Euro nations were showing positive growth rates. This fall in Ireland’s GDP is attributed firstly, according to Author of the Bulletin, Dr. Dan McLaughlin, Group Chief Economist, Bank of Ireland, to the drastic fall in capital spending. Although capital spending decreased by 11%, on average, throughout the rest of the developed world; in Ireland it fell by a drastic 30% along with a 34% decline in building and construction activity (McLaughlin, 2010). The share of construction in general, and house-building in particular now accounts for only 2.5% of Ireland’s GDP, compared to 12% in 20 05 (McLaughlin, 2010). Secondly, consumption expenditure also saw a decline throughout the Western regime by 1.1%, due to reduced employment and falling growth in wages (McLaughlin, 2010). In the case of Ireland, employment slashed by 8% along with decline in wages which partially contributes to the fall in real consumer purchase power of Ireland (McLaughlin, 2010). A significant trend emerged at this point; that of higher savings. Although real disposable income dipped in Ireland, it was accompanied by a rise in the marginal propensity to save, leading to a higher savings ratio (McLaughlin, 2010). At the same time, Ireland’s exports fell by much more than that of its Euro competitors, implying that Net Exports also declined. Thus, to sum up; since all the components of GDP including consumption, investment and government expenditure along with net exports fell, GDP was bound to decline. iii) A Keynesian style stimulus package is a policy measure used by policymakers and inst itutions that involves stimulating one or more of the components that make up aggregate demand in an attempt to increase employment, income and output of an economy (Tool & Samuels, 1989). This approach is consistent with the Keynesian theory that negative output gap can lead to a bottleneck in the economy; a situation it finds difficult to escape. The paradox of thrift comes into force whereby loss of valuable consumer and investor confidence combined with high propensity to save exacerbates the recession (Meltzer, 1988). If such is the situation,

Rights and Duties in a Letter of Credit Transaction

Rights and Duties in a Letter of Credit Transaction Introduction The letter of credit is the most commonly used method of payment for goods in international trade. This thesis highlights the imbalance of the rights and duties of the parties in a letter of credit transaction by emphasising deficiencies in the letters of credit system. In addition, on those areas where there is lack of justice and equity and which make the system of the letters of credit vulnerable for fraudulent activities. This thesis is structured in five chapters. First chapter after briefly discussing the structure of the letter of credit system, such as parties to the letter of credit transaction, kinds of letters of credit, step by step procedure of the transaction, different type of the documents used and the common defects in those documents, it also explains about the division of the risk under such a transaction and how the applicant’s risk has increased under UCP and very often the buyer is paying for the goods he had not contracted for. Second chapter after brief discussion of the drafting and interpretation of the UCP, explains about the reluctance of the courts to intervene in order to balance the rights and duties of the parties in a letter of credit transaction, status of the UCP, scope of the banks duties and in addition the disclaimer clauses under UCP. Chapter three explores the autonomy of the letters of credit, the doctrine of strict compliance and the ways in which the courts deal with documentary compliance. It further considers that overprotection of the â€Å"independence principle†, and the lack of â€Å"reasonable care† on the part of banks provides opportunities of fraud to the sellers to obtain payment without actually performing their duties to banks and buyers. Chapter four explains â€Å"fraud exception† to the autonomy principle in detail, the position of the fraud exception in England and the history of the English cases relating to the fraud. In addition it also examines the reasons for such an enormous increase in the number of cases relating to fraud. Finally, chapter five considers some of those methods, which can be used to avoid such an increase in fraud cases and also provides few suggestions to balance the rights and duties amongst all the parties to the letter of credit transaction. Chapter 1 Structure of a Letter of Credit Transaction Commercial letters of credit have been used for the centuries as a most common method of payment, in international trade. Letters of credit used in international transactions are governed by the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits (UCP). A commercial letter of credit is a contractual agreement between a bank (issuing bank), on behalf of one of its customers (buyer), authorizing another bank (advising or confirming bank), to make payment to the beneficiary (seller). The issuing bank, on the application of its customer (buyer), opens the letter of credit, and makes a commitment with the buyer to honour the credit, if the documents presented by the beneficiary are conforming to the terms and conditions of the credit. Thus, the issuing replaces the customer to make payment to the seller. Elements of a Letter of Credit An undertaking given by issuing bank to make payment Issuing bank gives undertaking on behalf of a applicant To pay a given amount of money to the seller On presentation of required documents under the letter of credit Within a specified time as provided by the letter of credit Documents must be in compliance to the terms and conditions of the letter of credit Documents must be presented at a specified place provided by the letter of credit Beneficiary Beneficiary is normally the provider of the goods or services and is entitled to payment as long as he can provide the conforming documents required by the letter of credit. The letter of credit is a distinct and separate transaction from the underlying contract (contract between seller and buyer). All parties deal in documents and not in goods. The issuing bank is not liable for the performance of the underlying contract between the buyer and seller. The issuing banks obligation to the buyer-applicant is to examine all documents to insure that they are in compliance with the terms and conditions of the credit. To get the payment it is for the beneficiary to provide all the required documents. If the seller-beneficiary conforms to the letter of credit, the seller must be paid by the bank. Issuing Bank Letters of credit only concerns with the documents, not with the goods, therefore the duty of issuing bank to pay to the beneficiary and than to be reimbursed from its customer will only be completed upon the completion of the terms and conditions of the letter of credit. Under the provisions of the Uniform Customs and Practice for Documentary Credits, the bank is entitled to have a reasonable time after receipt of the documents from the beneficiary, to examine the documents and then to make the payment. The issuing bank provides a guarantee to the seller that if the documents presented by the beneficiary are in compliance with the terms and conditions of the credit, then the bank will make the payment to the seller. Generally the documents presented include a commercial invoice, bill of lading or airway bill and an insurance document etc. Advising Bank An advising bank is usually a foreign correspondent bank of the issuing bank which advises the seller-beneficiary. Generally, the beneficiary wants to use a local bank to insure that the letter of credit is valid. In addition, the advising bank is responsible for sending the documents to the issuing bank. The advising bank has no other obligation under the letter of credit. Therefore, if the issuing bank does not pay the beneficiary, the advising bank is not obligated to pay. Confirming Bank At the request of the issuing bank, the correspondent bank may confirm the letter of credit for the seller-beneficiary and obligates itself to insure payment under the letter of credit. The confirming bank is usually the advising bank. There are two main types of Letters of credit: (1) Revocable (2) Irrevocable Revocable Letter of Credit Revocable letter of credit is not a commonly used type of the letters of credit. This type of letter of credit can be revoked by the issuing bank at any time, without notification to the beneficiary, for any reason. Such type of letter of credit can not be confirmed by the correspondent bank and the bank will act as an advising bank only. A revocable letter of credit can not be revoked after the presentation of the documents, if the documents are conforming to the terms and conditions of the letter of credit and the payment has been made. Irrevocable Letter of Credit Use of irrevocable letters of credit is very common in international trade. Irrevocable letter of credit can not be revoked or changed without the consent of the beneficiary. Issuing bank will make the payment to the seller, if the seller presents the documents complying with the terms of the credit, as agreed between seller and buyer. Such a letter of credit can only be changed with the permission of both buyer and seller. If it is not clear from the letter of credit that whether it is revocable or irrevocable, it automatically considers as irrevocable. Irrevocable letters of credit are of two kinds: Unconfirmed credit In case of unconfirmed letter of credit, advising bank does not confirm the credit to the seller and the issuing bank is the only party responsible for payment to the beneficiary. Advising bank will only pay to the seller after getting payment from the issuing bank and there is no risk for the advising bank. Confirmed credit In this type of credit, advising bank confirms credit to the seller. When the advising bank confirms that the documents presented are conforming to the terms of the credit, it will make the payment to the seller, and after that advising bank will contact with the issuing bank to get the payment. This type of letter of credit is commonly used, when the seller is unfamiliar with the issuing bank. Such a type of letter of credit is quite expensive because the banks have some liability. Step-by-step process In international trade as the buyer and seller are in different countries so when the buyer and the seller of the goods agree to conduct business, than because of the gap of time between delivery of goods and the payment, usually the seller wants a letter of credit as a guarantee of payment from the buyer. Than the buyer makes a request to his bank called the issuing to open a credit in the favour of the seller. at the request of the buyer, issuing bank issues a letter of credit in favour of the seller and forwards it to the corresponding bank called the advising or conforming bank., which is usually located in the seller’s country. Advising bank than either confirms the credit or not, depending upon the type of credit, and forward it to the seller. Seller than ships the goods and collects the documents required in order to meet the requirements of the letter of credit and finally to get the payment in time. Seller presents the required documents to the advising or confirming bank in order to get the payment in time. Advising or confirming bank examines the documents presented by the seller to check that whether they are conforming to the terms and conditions of the letter of credit. If the documents are in compliance, advising or confirming bank, in case of confirmed letter of credit, will make payment to the seller and will be reimbursed from the issuing bank and in case of unconfirmed letter of credit, advising or confirming bank will forward the documents to the issuing bank. Than the Issuing bank will, after examine of the documents, debit the buyers account if the documents are in compliance to the terms of the letter of credit. In the end, Issuing bank forwards the documents to the buyer. Most commonly used documents in a letter of credit transaction include: Commercial Invoice This includes description of the goods, their price, FOB origin, and name and address of the buyer and the seller. The buyer and seller information must be in compliance with the description provided in the letter of credit. Bill of Lading It is a document which shows the receipt of goods for shipment by a freight carrier. It is an evidence of the control of the goods and also acts as an evidence of the carriers obligation to transport the goods to their proper destination. Warranty of Title A warranty given by a seller to a buyer of goods that states that the title being conveyed is good. It is generally issued to the purchaser. Letter of Indemnity It is a letter specifically indemnifies the purchaser against a certain stated circumstance. Indemnification is generally used to guarantee that shipping documents will be provided in good order when available. Common Defects in the documents presented A discrepancy is some defect in the documents presented by the seller, which show their non-compliance with the terms of the letter of credit. Issuing bank can not change the terms and conditions of the letter of credit with out t he permission of the buyer. Therefore to avoid any delay in getting payment. Beneficiary should be careful in preparing the required documents. Common defects in the documents presented by the seller include: If the description of the goods is not consistent. There is some error in the insurance documents. If the draft amount is not equal to invoice amount. Loading and destination ports are not same as provided by the letter of credit. Merchandise description is not same as in the credit. If any of the documents required by the credit is not presented. Documents are generally inconsistent such as quality, etc. If the names of the documents required are not correct, as mentioned in the credit. Invoice is not signed as provided in the letter of credit. If prior to the presentation of the draft, Letter of Credit has expired. If the date mention in the bill of lading is different from the date stated in the credit. If there are some changes in the invoice which are not authorized by the letter of credit. In international sales, as the seller and the buyer are in different countries, there is a common problem of payment due to the difference of time between dispatch and delivery. Obviously, seller would like to receive payment for the goods when delivering them to the carrier and the buyer would prefer to delay the payment of the price until receipt of the goods. Therefore, a letter of credit solves this problem between the seller and the buyer. Generally, there are three separate transactions in a letter of credit transaction. The first is between a seller and a buyer, called an underlying transaction, by which the seller provides contracted goods to the buyer. The second transaction is between the buyer-applicant and the bank (issuer of the letter of credit), in which the bank issues a letter of credit to the seller-beneficiary. Finally, the letter of credit itself creates a relationship between the issuer and the beneficiary, in which, the issuer makes payment for goods upon the beneficiary’s presentation of the required documents, in accordance with the terms and conditions of the letter of credit as agreed between seller and buyer. The bank’s performance of payment is conditional on the delivery of conforming documents by the beneficiary. The banks are called issuers and are usually the applicant’s bank. Normally the issuing bank opens a letter of credit in its own name and requests its correspondent bank to notify the seller about the letter of credit. Sometimes, the issuing bank asks the correspondent bank not only to inform the seller of the issuing bank’s undertaking but also to add a confirmation. In this case, the credit is known as a confirmed credit and the correspondent bank as a confirming bank. The payment obligation of the issuing bank depends upon the beneficiary’s presentation of complying documents to the confirming bank or to any other nominated bank, in accordance with the terms and conditions of the credit. Under general practice, presenting â€Å"complying documents† means that they comply with the conditions of the credit â€Å"on their face†. From banking point of view, compliance â€Å"on their face† of the presented documents is sufficient. The â€Å"independence principle† (which will be discussed later) is the fundamental principle of the letter of credit system, which prohibits banks from looking beyond facial compliance of the documents, and therefore exclude whether or not there is actual performance by the seller-beneficiary. In fact, letters of credit system has emphasised the independence principle to such an extent that banks are ignoring the performance of the underlying contract very confidently. As a result, all the risk is on the honest buyers, who are sometime paying for goods that they had not contracted for. Importance of the research The primary purpose of the letter of credit system is to facilitate international trade, rather than to provide an opportunity to the banks to make profit. As the fraud is very common in these days, but UCP is not designed to prevent fraud. The number of frauds relating to the letters of credit has increased over the years. Buyers are particularly vulnerable to such practices under the letter of credit system. This situation shows that there is some ambiguity in the letter of credit system and a lack of balance between the rights and duties of the parties to a letter of credit transaction, which is being exploited very easily by fraudsters. Division of risk under a Letter of Credit Transaction As we have discussed above, a letter of credit transaction consists of three linked but independent contracts. The first step is that the buyer makes a contract with the seller for the sale of goods, called the underlying contract. Subsequently the buyer signs an application form requesting the bank to open a credit, which is an arrangement between the buyer and the bank. The third step is that the issuing bank informs the seller, who is the beneficiary of the letter of credit, of the credit and promises to pay against the stipulated documents provided the terms and conditions of the credit are met. The letter of credit allocates risk between the applicant and the beneficiary. By postulating a letter of credit, the beneficiary may greatly reduce the risk of not being paid and ultimately allowing the beneficiary of the letter to reallocate the risk of non-payment for delivered goods which do not conform to the underlying sale contract. Generally, banks are reluctant to dishonour a credit, since to do so may damage the bank’s reputation as a credit issuer. The cost of honour, however, falls on the honest applicant, not the bank. â€Å"If the beneficiary has breached the underlying transaction, payment under the credit to him will occasion loss, but that loss will not be the bank’s; it will be the applicant’s.† Increase in the applicant’s risk and decrease in the bank’s risk under UCP UCP is the governing law of the letters of credit, therefore there should be a balance regarding the rights and duties of the parties, but UCP contains rules that reduce bank risk. There is no provision asking for judicial intervention to compensate letter of credit parties in case of bank’s negligence. The provisions in favour of banks fall into two categories. The first provides sweeping immunity from liabilities that national legal systems may impose. Example of such a disclaimer is Article 15. Under Article 15, banks assume no liability for the genuineness, falsification or legal effect of any documents and therefore the issuer is immune from the liability for paying against forged documents, which on their face appear regular. Therefore, the payment by the issuing bank does not show that the buyer has received the goods, which he had contracted for. The security, which the beneficiary is getting under the letter of credit system is not the same with the security of the buyer. The second category of pro-bank provisions contains rules that set precise boundaries on what the banks must do, which reduces uncertainty about bank responsibility and provides clear guidance to bank employees. For example, the customer cannot stipulate non-documentary conditions of payment, and time limits on examination of documents are fixed rather than open-ended. In case of any loss, the buyer, which is the applicant for a credit, can take action against the seller for breach of contract or fraud, but has no right of action against the bank for bank’s negligence in examining the documents, which can be ineffectual for several reasons, such as insolvency of either the applicant or the beneficiary. Hence the burden of risk on the applicant is more than any party in a letter of credit transaction and in most of the cases, buyers are paying for the goods, they have not contracted for. Chapter 2 UCP and letters of credit Originally UCP has been drafted by the Banking Commission of the ICC, which was comprised of the representatives of the banking community, which shows the dominance of the banks and banking experts. Their dominance in UCP drafting, hints that in drafting UCP, ICC was acting as a private legislature. It looks that the rules contain in the UCP are much beneficial for the banks than any other party, and giving a limited chance to the judiciaries to interfere to protect customers from any careless behaviour of the banks. The authority to interpret the UCP rests in the ICC Commission on Banking Technique and Practice, which can apply these interpretations to solve the problems arising in any case. Because of wide publicity and distribution of commission’s answers, their interpretation can be considered as an official interpretation of the UCP. Commission can enhance, interpreting, and sometimes amend the provisions of the UCP. The banks which deal with the letters of credit, act upon these interpretations and any amendments. As in theory, commission is only answerable to ICC members, therefore the chances of any challenge to such interpretation is very low. Role of courts in balancing the rights and duties of the parties In Discount Records Ltd. v. Barclay Bank Ltd., the judge was reluctant to â€Å"interfere with bankers’ irrevocable credit and not least in the sphere of international banking†. The position is same in many other cases. The apparent reason for the reluctance of the judges to interfere looks that they are afraid from the threats of the banking experts that their decisions would have an unfavourable affect on international trade. The difficulties of the courts to balance the rights and duties of all parties to a letter of credit transaction have increased. In Mannesman Handel AG v. Kaunlaran Shipping Corporation, the Swiss bank argued that the bank was in rejecting the documents by the German company relying on the independence principle and the discrepancies appeared on the documents. The court was asked not to apply the good faith principle otherwise the court â€Å"would be calculated to undermine if not destroy the doctrine of strict compliance and to blur if not extinguish the distinction between transactions concerning goods and transactions concerning documents.† Normally the judicial decisions relating to the legal aspects of documentary credits base on either the express intentions of the parties or established business practice at the time, the parties entered in a contractual relationship. In cases where the UCP provisions are different from business practice, a court will apply the UCP if the UCP is incorporated in the contract of the parties. It shows that courts have assented to the entire documentary credit system being run by the banking industry and eventually abstaining the courts to intervene to balance the legal rights and duties amongst all the parties. Should the UCP have the status of law? Leading scholar Professor Ross Buckley says: â€Å"originally, the UCP was neither designed nor intended to be law. It was prepared as a set of standard terms to be incorporated by reference into letters of credit by those parties who chose to do so.† This has also been confirmed by the UCP in the preface of UCP 500, which states that the UCP is not legislation but a compilation of rules made by bankers for their own industry. Therefore there is a dispute as to whether the UCP is a code of the law, or just customary practices, or some mutually consented regulations relating to letters of credit. However in fact, UCP is the governing law of the letters of credit. The Scope of the Banks Duties Before analysing the wording of the disclaimers used, the scope of the duties undertaken by the banks involved must be identified. Whereas the type of credit and the documentary stipulations therein will usually have been negotiated by the commercial parties and included in their sales contract, the terms and conditions under which a bank undertakes to open a documentary credit will normally appear in the banks standard application form which the importer will be required to complete. Although the application would normally refer to the UCP, it is important to note that the provisions of the UCP would not automatically apply in English law if not expressly incorporated by the parties to the credit and, even if expressly incorporated, its provisions can be excluded, or modified by the express terms of the credit. The duty to issue an efficacious credit The importers failure to procure the issue of a documentary credit which conforms to the terms of the sales contract may be treated by the exporter as a breach of a condition precedent to his performance and a repudiation of the contract by the importer. Whether the applicant can sue the issuing bank in respect of its culpable failure to issue (or to issue in good time) a conforming and efficacious credit is, however, by no means clear. The duty to issue a conforming credit An initial problem arises where the applicant requires the issue of a confirmed credit, that is, a credit in which a second bank, normally in the beneficiarys country, adds its own independent undertaking, to pay against the stipulated documents, to that of the issuing bank. Is the issuing bank in breach of contract towards the applicant if it is unable to procure the confirmation? The answer must depend upon the issuers conduct on receiving the application from the applicant. The second aspect of the duty to issue a conforming credit raises the question of liability for the acts of other banks involved in the transaction. Clearly, if the issuing bank opens a credit which specifies documentation other than that called for by the applicant, then in the absence of a disclaimer it will be in breach of its contract with the applicant under the doctrine of strict compliance. The position should be the same where the issuing bank unreasonably delays issue of the credit so that the beneficiary incurs loss. A difficulty arises, however, when it is not the issuing bank itself which causes the error or delay in complying with the applicants instructions, but the issuers correspondent bank. The doctrine of privity of contract would appear to prevent contractual liability arising in this context. However, in any event, it appears that there is no reason for holding that, in the absence of a disclaimer; an issuing bank should not be liable for the consequences of errors by its correspondents. Duty to receive and examine documents The doctrine of strict compliance means that issuing banks which pay against non-conforming documents are in breach of their contractual obligations to the applicant. The issuer is not, however, a guarantor of the documents conformity; its duty is discharged by the exercise of reasonable care to ascertain that the documents comply on their face with the terms of the credit. Duty to make payment under the terms of the credit The party with the primary interest in enforcing the banks obligation to pay against conforming documents is the beneficiary although it is clear that this obligation is also owed to the applicant. Furthermore, any variation of the payment terms would be a clear breach of contract. Duties of correspondent banks In so far as the confirming bank gives an undertaking in exactly the same terms as the issuing bank, it clearly owes precisely the same duties to the beneficiary. However, since a confirming bank looks to the issuing bank alone for reimbursement, it may be prima facie unlikely that it owes any duty to the applicant, even where the applicant is paying the confirmation fee. There are, however, some judicial dicta which might support the recognition of such a duty. Bank’s risk under UCP (exemption clauses) Article 15 and 18 (b) of the UCP 500, limits the liability of the banks in a letter of credit transaction and which have almost made it a risk free transaction for the banks. Article 15 says: â€Å"Banks assume no liability to or responsibility for the form, sufficiency, accuracy, genuineness, falsification or legal effect of any document(s) or for the general and/or particular conditions stipulated in the document(s) or superimposed thereon, nor do they assume any liability or responsibility for the description, quantity, weight, quality, condition, packing, delivery, value or existence of the goods represented by any document(s) or for the good-faith or acts and/or omissions, solvency, performance or standing of the consignors, the carriers, the forwarders, the consignee or the insurers of the goods or any other person whomsoever.† Article 18(b) further states: â€Å"Banks assume no liability or responsibility should the instructions they submit not be carried out, even if they have themselves taken the initiative in the choice of such other bank(s).† The UCP 500 places the applicant-buyer in an absurdly vulnerable position through its disclaimer clauses. To some extent there is a lack of duties on the part of the bank to verify the authenticity of the documents. Hence it might not be wrong to say that albeit there is a waste increase in the use of letters of credit, does not signify that the UCP is fairly drafted. Letters of credit and its users It is also very important that whether all the parties to the letter of credit, particularly applicant-buyer are conscious about the presence of these exemptions, e.g. by providing a copy of these exemption clauses of the UCP or by giving a notice of these exemption clauses. It is a rule that to enforce an exemption clause, a reasonable notice should be given to the other party but in practice, buyers are assume to have the notice of the UCP and that they are familiar with the provisions of the UCP. Further, the application for the issuance of a letter of credit and the letter of credit document itself only contain a simple sentence: â€Å"Subject to UCP for Documentary Credits†, without any attachment of the provisions of the UCP or any notice of such exemption clauses. Hence it is debatable that why the courts do not look, while dealing with the cases relating to the letters of credit, that whether a reasonable notice has been given relating to the exemption clauses and do not interfere to balance the rights and duties of the parties to a letter of credit transaction? Chapter 3 Doctrine of strict compliance and independence principle It is a basic rule of the letter of the credit transaction and which is widely recognised that the letters of credit are transactions independent of the underlying contracts on which they are based. According to this principle, the issuer has no concern with the underlying contracts between buyer and seller. Its concern is with documents only, rather than the goods or any type of services. Obviously there are some doubts about this principle, i.e. to what extent this principle should be applied. Which some tome may cause injustice to the applicant under certain circumstances. Independence Principle Generally, letter of credit is a contract between the issuer and the seller of the goods, which is independent of the underlying contract between the seller and the buyer. The independence principle is mentioned in Article 3 and Article 4 of the UCP. Article 3 states: â€Å"Credits, by their nature, are separated transactions from the sales or other contract(s), even if any reference whatsoever to such contract(s) is included in the Credit.† Article 4 further says: â€Å"In credit operations all parties concerned deal with documents and not with goods, services and/or other performances to which the documents may relate.† From the very beginning independence principle governs letter of credit transactions and very clearly states that the credits are completely separate from their underlying transactions and the issuer makes payment depending on the conformity of the documents presented according to the terms and conditions of the credit without considering the performance of the underlying contract by the beneficiary. Rights and Duties in a Letter of Credit Transaction Rights and Duties in a Letter of Credit Transaction Introduction The letter of credit is the most commonly used method of payment for goods in international trade. This thesis highlights the imbalance of the rights and duties of the parties in a letter of credit transaction by emphasising deficiencies in the letters of credit system. In addition, on those areas where there is lack of justice and equity and which make the system of the letters of credit vulnerable for fraudulent activities. This thesis is structured in five chapters. First chapter after briefly discussing the structure of the letter of credit system, such as parties to the letter of credit transaction, kinds of letters of credit, step by step procedure of the transaction, different type of the documents used and the common defects in those documents, it also explains about the division of the risk under such a transaction and how the applicant’s risk has increased under UCP and very often the buyer is paying for the goods he had not contracted for. Second chapter after brief discussion of the drafting and interpretation of the UCP, explains about the reluctance of the courts to intervene in order to balance the rights and duties of the parties in a letter of credit transaction, status of the UCP, scope of the banks duties and in addition the disclaimer clauses under UCP. Chapter three explores the autonomy of the letters of credit, the doctrine of strict compliance and the ways in which the courts deal with documentary compliance. It further considers that overprotection of the â€Å"independence principle†, and the lack of â€Å"reasonable care† on the part of banks provides opportunities of fraud to the sellers to obtain payment without actually performing their duties to banks and buyers. Chapter four explains â€Å"fraud exception† to the autonomy principle in detail, the position of the fraud exception in England and the history of the English cases relating to the fraud. In addition it also examines the reasons for such an enormous increase in the number of cases relating to fraud. Finally, chapter five considers some of those methods, which can be used to avoid such an increase in fraud cases and also provides few suggestions to balance the rights and duties amongst all the parties to the letter of credit transaction. Chapter 1 Structure of a Letter of Credit Transaction Commercial letters of credit have been used for the centuries as a most common method of payment, in international trade. Letters of credit used in international transactions are governed by the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits (UCP). A commercial letter of credit is a contractual agreement between a bank (issuing bank), on behalf of one of its customers (buyer), authorizing another bank (advising or confirming bank), to make payment to the beneficiary (seller). The issuing bank, on the application of its customer (buyer), opens the letter of credit, and makes a commitment with the buyer to honour the credit, if the documents presented by the beneficiary are conforming to the terms and conditions of the credit. Thus, the issuing replaces the customer to make payment to the seller. Elements of a Letter of Credit An undertaking given by issuing bank to make payment Issuing bank gives undertaking on behalf of a applicant To pay a given amount of money to the seller On presentation of required documents under the letter of credit Within a specified time as provided by the letter of credit Documents must be in compliance to the terms and conditions of the letter of credit Documents must be presented at a specified place provided by the letter of credit Beneficiary Beneficiary is normally the provider of the goods or services and is entitled to payment as long as he can provide the conforming documents required by the letter of credit. The letter of credit is a distinct and separate transaction from the underlying contract (contract between seller and buyer). All parties deal in documents and not in goods. The issuing bank is not liable for the performance of the underlying contract between the buyer and seller. The issuing banks obligation to the buyer-applicant is to examine all documents to insure that they are in compliance with the terms and conditions of the credit. To get the payment it is for the beneficiary to provide all the required documents. If the seller-beneficiary conforms to the letter of credit, the seller must be paid by the bank. Issuing Bank Letters of credit only concerns with the documents, not with the goods, therefore the duty of issuing bank to pay to the beneficiary and than to be reimbursed from its customer will only be completed upon the completion of the terms and conditions of the letter of credit. Under the provisions of the Uniform Customs and Practice for Documentary Credits, the bank is entitled to have a reasonable time after receipt of the documents from the beneficiary, to examine the documents and then to make the payment. The issuing bank provides a guarantee to the seller that if the documents presented by the beneficiary are in compliance with the terms and conditions of the credit, then the bank will make the payment to the seller. Generally the documents presented include a commercial invoice, bill of lading or airway bill and an insurance document etc. Advising Bank An advising bank is usually a foreign correspondent bank of the issuing bank which advises the seller-beneficiary. Generally, the beneficiary wants to use a local bank to insure that the letter of credit is valid. In addition, the advising bank is responsible for sending the documents to the issuing bank. The advising bank has no other obligation under the letter of credit. Therefore, if the issuing bank does not pay the beneficiary, the advising bank is not obligated to pay. Confirming Bank At the request of the issuing bank, the correspondent bank may confirm the letter of credit for the seller-beneficiary and obligates itself to insure payment under the letter of credit. The confirming bank is usually the advising bank. There are two main types of Letters of credit: (1) Revocable (2) Irrevocable Revocable Letter of Credit Revocable letter of credit is not a commonly used type of the letters of credit. This type of letter of credit can be revoked by the issuing bank at any time, without notification to the beneficiary, for any reason. Such type of letter of credit can not be confirmed by the correspondent bank and the bank will act as an advising bank only. A revocable letter of credit can not be revoked after the presentation of the documents, if the documents are conforming to the terms and conditions of the letter of credit and the payment has been made. Irrevocable Letter of Credit Use of irrevocable letters of credit is very common in international trade. Irrevocable letter of credit can not be revoked or changed without the consent of the beneficiary. Issuing bank will make the payment to the seller, if the seller presents the documents complying with the terms of the credit, as agreed between seller and buyer. Such a letter of credit can only be changed with the permission of both buyer and seller. If it is not clear from the letter of credit that whether it is revocable or irrevocable, it automatically considers as irrevocable. Irrevocable letters of credit are of two kinds: Unconfirmed credit In case of unconfirmed letter of credit, advising bank does not confirm the credit to the seller and the issuing bank is the only party responsible for payment to the beneficiary. Advising bank will only pay to the seller after getting payment from the issuing bank and there is no risk for the advising bank. Confirmed credit In this type of credit, advising bank confirms credit to the seller. When the advising bank confirms that the documents presented are conforming to the terms of the credit, it will make the payment to the seller, and after that advising bank will contact with the issuing bank to get the payment. This type of letter of credit is commonly used, when the seller is unfamiliar with the issuing bank. Such a type of letter of credit is quite expensive because the banks have some liability. Step-by-step process In international trade as the buyer and seller are in different countries so when the buyer and the seller of the goods agree to conduct business, than because of the gap of time between delivery of goods and the payment, usually the seller wants a letter of credit as a guarantee of payment from the buyer. Than the buyer makes a request to his bank called the issuing to open a credit in the favour of the seller. at the request of the buyer, issuing bank issues a letter of credit in favour of the seller and forwards it to the corresponding bank called the advising or conforming bank., which is usually located in the seller’s country. Advising bank than either confirms the credit or not, depending upon the type of credit, and forward it to the seller. Seller than ships the goods and collects the documents required in order to meet the requirements of the letter of credit and finally to get the payment in time. Seller presents the required documents to the advising or confirming bank in order to get the payment in time. Advising or confirming bank examines the documents presented by the seller to check that whether they are conforming to the terms and conditions of the letter of credit. If the documents are in compliance, advising or confirming bank, in case of confirmed letter of credit, will make payment to the seller and will be reimbursed from the issuing bank and in case of unconfirmed letter of credit, advising or confirming bank will forward the documents to the issuing bank. Than the Issuing bank will, after examine of the documents, debit the buyers account if the documents are in compliance to the terms of the letter of credit. In the end, Issuing bank forwards the documents to the buyer. Most commonly used documents in a letter of credit transaction include: Commercial Invoice This includes description of the goods, their price, FOB origin, and name and address of the buyer and the seller. The buyer and seller information must be in compliance with the description provided in the letter of credit. Bill of Lading It is a document which shows the receipt of goods for shipment by a freight carrier. It is an evidence of the control of the goods and also acts as an evidence of the carriers obligation to transport the goods to their proper destination. Warranty of Title A warranty given by a seller to a buyer of goods that states that the title being conveyed is good. It is generally issued to the purchaser. Letter of Indemnity It is a letter specifically indemnifies the purchaser against a certain stated circumstance. Indemnification is generally used to guarantee that shipping documents will be provided in good order when available. Common Defects in the documents presented A discrepancy is some defect in the documents presented by the seller, which show their non-compliance with the terms of the letter of credit. Issuing bank can not change the terms and conditions of the letter of credit with out t he permission of the buyer. Therefore to avoid any delay in getting payment. Beneficiary should be careful in preparing the required documents. Common defects in the documents presented by the seller include: If the description of the goods is not consistent. There is some error in the insurance documents. If the draft amount is not equal to invoice amount. Loading and destination ports are not same as provided by the letter of credit. Merchandise description is not same as in the credit. If any of the documents required by the credit is not presented. Documents are generally inconsistent such as quality, etc. If the names of the documents required are not correct, as mentioned in the credit. Invoice is not signed as provided in the letter of credit. If prior to the presentation of the draft, Letter of Credit has expired. If the date mention in the bill of lading is different from the date stated in the credit. If there are some changes in the invoice which are not authorized by the letter of credit. In international sales, as the seller and the buyer are in different countries, there is a common problem of payment due to the difference of time between dispatch and delivery. Obviously, seller would like to receive payment for the goods when delivering them to the carrier and the buyer would prefer to delay the payment of the price until receipt of the goods. Therefore, a letter of credit solves this problem between the seller and the buyer. Generally, there are three separate transactions in a letter of credit transaction. The first is between a seller and a buyer, called an underlying transaction, by which the seller provides contracted goods to the buyer. The second transaction is between the buyer-applicant and the bank (issuer of the letter of credit), in which the bank issues a letter of credit to the seller-beneficiary. Finally, the letter of credit itself creates a relationship between the issuer and the beneficiary, in which, the issuer makes payment for goods upon the beneficiary’s presentation of the required documents, in accordance with the terms and conditions of the letter of credit as agreed between seller and buyer. The bank’s performance of payment is conditional on the delivery of conforming documents by the beneficiary. The banks are called issuers and are usually the applicant’s bank. Normally the issuing bank opens a letter of credit in its own name and requests its correspondent bank to notify the seller about the letter of credit. Sometimes, the issuing bank asks the correspondent bank not only to inform the seller of the issuing bank’s undertaking but also to add a confirmation. In this case, the credit is known as a confirmed credit and the correspondent bank as a confirming bank. The payment obligation of the issuing bank depends upon the beneficiary’s presentation of complying documents to the confirming bank or to any other nominated bank, in accordance with the terms and conditions of the credit. Under general practice, presenting â€Å"complying documents† means that they comply with the conditions of the credit â€Å"on their face†. From banking point of view, compliance â€Å"on their face† of the presented documents is sufficient. The â€Å"independence principle† (which will be discussed later) is the fundamental principle of the letter of credit system, which prohibits banks from looking beyond facial compliance of the documents, and therefore exclude whether or not there is actual performance by the seller-beneficiary. In fact, letters of credit system has emphasised the independence principle to such an extent that banks are ignoring the performance of the underlying contract very confidently. As a result, all the risk is on the honest buyers, who are sometime paying for goods that they had not contracted for. Importance of the research The primary purpose of the letter of credit system is to facilitate international trade, rather than to provide an opportunity to the banks to make profit. As the fraud is very common in these days, but UCP is not designed to prevent fraud. The number of frauds relating to the letters of credit has increased over the years. Buyers are particularly vulnerable to such practices under the letter of credit system. This situation shows that there is some ambiguity in the letter of credit system and a lack of balance between the rights and duties of the parties to a letter of credit transaction, which is being exploited very easily by fraudsters. Division of risk under a Letter of Credit Transaction As we have discussed above, a letter of credit transaction consists of three linked but independent contracts. The first step is that the buyer makes a contract with the seller for the sale of goods, called the underlying contract. Subsequently the buyer signs an application form requesting the bank to open a credit, which is an arrangement between the buyer and the bank. The third step is that the issuing bank informs the seller, who is the beneficiary of the letter of credit, of the credit and promises to pay against the stipulated documents provided the terms and conditions of the credit are met. The letter of credit allocates risk between the applicant and the beneficiary. By postulating a letter of credit, the beneficiary may greatly reduce the risk of not being paid and ultimately allowing the beneficiary of the letter to reallocate the risk of non-payment for delivered goods which do not conform to the underlying sale contract. Generally, banks are reluctant to dishonour a credit, since to do so may damage the bank’s reputation as a credit issuer. The cost of honour, however, falls on the honest applicant, not the bank. â€Å"If the beneficiary has breached the underlying transaction, payment under the credit to him will occasion loss, but that loss will not be the bank’s; it will be the applicant’s.† Increase in the applicant’s risk and decrease in the bank’s risk under UCP UCP is the governing law of the letters of credit, therefore there should be a balance regarding the rights and duties of the parties, but UCP contains rules that reduce bank risk. There is no provision asking for judicial intervention to compensate letter of credit parties in case of bank’s negligence. The provisions in favour of banks fall into two categories. The first provides sweeping immunity from liabilities that national legal systems may impose. Example of such a disclaimer is Article 15. Under Article 15, banks assume no liability for the genuineness, falsification or legal effect of any documents and therefore the issuer is immune from the liability for paying against forged documents, which on their face appear regular. Therefore, the payment by the issuing bank does not show that the buyer has received the goods, which he had contracted for. The security, which the beneficiary is getting under the letter of credit system is not the same with the security of the buyer. The second category of pro-bank provisions contains rules that set precise boundaries on what the banks must do, which reduces uncertainty about bank responsibility and provides clear guidance to bank employees. For example, the customer cannot stipulate non-documentary conditions of payment, and time limits on examination of documents are fixed rather than open-ended. In case of any loss, the buyer, which is the applicant for a credit, can take action against the seller for breach of contract or fraud, but has no right of action against the bank for bank’s negligence in examining the documents, which can be ineffectual for several reasons, such as insolvency of either the applicant or the beneficiary. Hence the burden of risk on the applicant is more than any party in a letter of credit transaction and in most of the cases, buyers are paying for the goods, they have not contracted for. Chapter 2 UCP and letters of credit Originally UCP has been drafted by the Banking Commission of the ICC, which was comprised of the representatives of the banking community, which shows the dominance of the banks and banking experts. Their dominance in UCP drafting, hints that in drafting UCP, ICC was acting as a private legislature. It looks that the rules contain in the UCP are much beneficial for the banks than any other party, and giving a limited chance to the judiciaries to interfere to protect customers from any careless behaviour of the banks. The authority to interpret the UCP rests in the ICC Commission on Banking Technique and Practice, which can apply these interpretations to solve the problems arising in any case. Because of wide publicity and distribution of commission’s answers, their interpretation can be considered as an official interpretation of the UCP. Commission can enhance, interpreting, and sometimes amend the provisions of the UCP. The banks which deal with the letters of credit, act upon these interpretations and any amendments. As in theory, commission is only answerable to ICC members, therefore the chances of any challenge to such interpretation is very low. Role of courts in balancing the rights and duties of the parties In Discount Records Ltd. v. Barclay Bank Ltd., the judge was reluctant to â€Å"interfere with bankers’ irrevocable credit and not least in the sphere of international banking†. The position is same in many other cases. The apparent reason for the reluctance of the judges to interfere looks that they are afraid from the threats of the banking experts that their decisions would have an unfavourable affect on international trade. The difficulties of the courts to balance the rights and duties of all parties to a letter of credit transaction have increased. In Mannesman Handel AG v. Kaunlaran Shipping Corporation, the Swiss bank argued that the bank was in rejecting the documents by the German company relying on the independence principle and the discrepancies appeared on the documents. The court was asked not to apply the good faith principle otherwise the court â€Å"would be calculated to undermine if not destroy the doctrine of strict compliance and to blur if not extinguish the distinction between transactions concerning goods and transactions concerning documents.† Normally the judicial decisions relating to the legal aspects of documentary credits base on either the express intentions of the parties or established business practice at the time, the parties entered in a contractual relationship. In cases where the UCP provisions are different from business practice, a court will apply the UCP if the UCP is incorporated in the contract of the parties. It shows that courts have assented to the entire documentary credit system being run by the banking industry and eventually abstaining the courts to intervene to balance the legal rights and duties amongst all the parties. Should the UCP have the status of law? Leading scholar Professor Ross Buckley says: â€Å"originally, the UCP was neither designed nor intended to be law. It was prepared as a set of standard terms to be incorporated by reference into letters of credit by those parties who chose to do so.† This has also been confirmed by the UCP in the preface of UCP 500, which states that the UCP is not legislation but a compilation of rules made by bankers for their own industry. Therefore there is a dispute as to whether the UCP is a code of the law, or just customary practices, or some mutually consented regulations relating to letters of credit. However in fact, UCP is the governing law of the letters of credit. The Scope of the Banks Duties Before analysing the wording of the disclaimers used, the scope of the duties undertaken by the banks involved must be identified. Whereas the type of credit and the documentary stipulations therein will usually have been negotiated by the commercial parties and included in their sales contract, the terms and conditions under which a bank undertakes to open a documentary credit will normally appear in the banks standard application form which the importer will be required to complete. Although the application would normally refer to the UCP, it is important to note that the provisions of the UCP would not automatically apply in English law if not expressly incorporated by the parties to the credit and, even if expressly incorporated, its provisions can be excluded, or modified by the express terms of the credit. The duty to issue an efficacious credit The importers failure to procure the issue of a documentary credit which conforms to the terms of the sales contract may be treated by the exporter as a breach of a condition precedent to his performance and a repudiation of the contract by the importer. Whether the applicant can sue the issuing bank in respect of its culpable failure to issue (or to issue in good time) a conforming and efficacious credit is, however, by no means clear. The duty to issue a conforming credit An initial problem arises where the applicant requires the issue of a confirmed credit, that is, a credit in which a second bank, normally in the beneficiarys country, adds its own independent undertaking, to pay against the stipulated documents, to that of the issuing bank. Is the issuing bank in breach of contract towards the applicant if it is unable to procure the confirmation? The answer must depend upon the issuers conduct on receiving the application from the applicant. The second aspect of the duty to issue a conforming credit raises the question of liability for the acts of other banks involved in the transaction. Clearly, if the issuing bank opens a credit which specifies documentation other than that called for by the applicant, then in the absence of a disclaimer it will be in breach of its contract with the applicant under the doctrine of strict compliance. The position should be the same where the issuing bank unreasonably delays issue of the credit so that the beneficiary incurs loss. A difficulty arises, however, when it is not the issuing bank itself which causes the error or delay in complying with the applicants instructions, but the issuers correspondent bank. The doctrine of privity of contract would appear to prevent contractual liability arising in this context. However, in any event, it appears that there is no reason for holding that, in the absence of a disclaimer; an issuing bank should not be liable for the consequences of errors by its correspondents. Duty to receive and examine documents The doctrine of strict compliance means that issuing banks which pay against non-conforming documents are in breach of their contractual obligations to the applicant. The issuer is not, however, a guarantor of the documents conformity; its duty is discharged by the exercise of reasonable care to ascertain that the documents comply on their face with the terms of the credit. Duty to make payment under the terms of the credit The party with the primary interest in enforcing the banks obligation to pay against conforming documents is the beneficiary although it is clear that this obligation is also owed to the applicant. Furthermore, any variation of the payment terms would be a clear breach of contract. Duties of correspondent banks In so far as the confirming bank gives an undertaking in exactly the same terms as the issuing bank, it clearly owes precisely the same duties to the beneficiary. However, since a confirming bank looks to the issuing bank alone for reimbursement, it may be prima facie unlikely that it owes any duty to the applicant, even where the applicant is paying the confirmation fee. There are, however, some judicial dicta which might support the recognition of such a duty. Bank’s risk under UCP (exemption clauses) Article 15 and 18 (b) of the UCP 500, limits the liability of the banks in a letter of credit transaction and which have almost made it a risk free transaction for the banks. Article 15 says: â€Å"Banks assume no liability to or responsibility for the form, sufficiency, accuracy, genuineness, falsification or legal effect of any document(s) or for the general and/or particular conditions stipulated in the document(s) or superimposed thereon, nor do they assume any liability or responsibility for the description, quantity, weight, quality, condition, packing, delivery, value or existence of the goods represented by any document(s) or for the good-faith or acts and/or omissions, solvency, performance or standing of the consignors, the carriers, the forwarders, the consignee or the insurers of the goods or any other person whomsoever.† Article 18(b) further states: â€Å"Banks assume no liability or responsibility should the instructions they submit not be carried out, even if they have themselves taken the initiative in the choice of such other bank(s).† The UCP 500 places the applicant-buyer in an absurdly vulnerable position through its disclaimer clauses. To some extent there is a lack of duties on the part of the bank to verify the authenticity of the documents. Hence it might not be wrong to say that albeit there is a waste increase in the use of letters of credit, does not signify that the UCP is fairly drafted. Letters of credit and its users It is also very important that whether all the parties to the letter of credit, particularly applicant-buyer are conscious about the presence of these exemptions, e.g. by providing a copy of these exemption clauses of the UCP or by giving a notice of these exemption clauses. It is a rule that to enforce an exemption clause, a reasonable notice should be given to the other party but in practice, buyers are assume to have the notice of the UCP and that they are familiar with the provisions of the UCP. Further, the application for the issuance of a letter of credit and the letter of credit document itself only contain a simple sentence: â€Å"Subject to UCP for Documentary Credits†, without any attachment of the provisions of the UCP or any notice of such exemption clauses. Hence it is debatable that why the courts do not look, while dealing with the cases relating to the letters of credit, that whether a reasonable notice has been given relating to the exemption clauses and do not interfere to balance the rights and duties of the parties to a letter of credit transaction? Chapter 3 Doctrine of strict compliance and independence principle It is a basic rule of the letter of the credit transaction and which is widely recognised that the letters of credit are transactions independent of the underlying contracts on which they are based. According to this principle, the issuer has no concern with the underlying contracts between buyer and seller. Its concern is with documents only, rather than the goods or any type of services. Obviously there are some doubts about this principle, i.e. to what extent this principle should be applied. Which some tome may cause injustice to the applicant under certain circumstances. Independence Principle Generally, letter of credit is a contract between the issuer and the seller of the goods, which is independent of the underlying contract between the seller and the buyer. The independence principle is mentioned in Article 3 and Article 4 of the UCP. Article 3 states: â€Å"Credits, by their nature, are separated transactions from the sales or other contract(s), even if any reference whatsoever to such contract(s) is included in the Credit.† Article 4 further says: â€Å"In credit operations all parties concerned deal with documents and not with goods, services and/or other performances to which the documents may relate.† From the very beginning independence principle governs letter of credit transactions and very clearly states that the credits are completely separate from their underlying transactions and the issuer makes payment depending on the conformity of the documents presented according to the terms and conditions of the credit without considering the performance of the underlying contract by the beneficiary.

A Psychological Analysis of Romeo and Juliet Essay -- William Shakespea

A Psychological Analysis of Romeo and Juliet Romeo and Juliet was obviously not written to fit the psychoanalytic model, as the theories of Freud were not developed for centuries after Shakespeare. Shakespeare wrote to Renaissance England, a culture so heavily steeped in Christianity, that it would have blushed at the instinctual and sexual thrust of Freud’s theory. However, in order to keep literature alive and relevant, a culture must continually reinterpret the themes and ideas of past works. While contextual readings assure cultural precision, often these readings guarantee the death of a particular work. Homer’s Iliad, a monument among classical works, is currently not as renowned as Romeo and Juliet because it is so heavily dependent on its cultural context. Just as writers have the liberty to reinterpret works to make them more relevant to their particular time, so to should commentators be allowed to criticize a work with modern ideas. For all the blatant and covert sexual content of Shakespeare’s p lays, they are in no way subscribing to a psychoanalytic construction. With that said, a psychoanalytic construction makes this play more relevant to modern readers, as psychoanalytic ideas are so pervasive they are either thoughtlessly accepted or flippantly rejected. Either way, Freudian ideas are a filter through which modern readers can understand the actions of Romeo and Juliet. The ideas used to interpret this play are not classically Freudian, but rather a more contemporary understanding of psychodynamics as influenced by modern existential theory. The ideas of Ernest Becker, one of the more influential figures in the new psychoanalysis, are used throughout this psychological examination. Suicide is the doma... ...t life. Suicide is the most extreme manifestation of this fear of life. A more moderate manifestation of this fear is depression. Early in the play, Romeo is described as having depression like symptoms. As the love affair progresses, it becomes increasingly clear that Romeo can not handle life without Juliet. By the end of the play, he kills himself because he can no longer have Juliet. Romeo’s final act of suicide is not completely based on the death of Juliet. The depression he exhibits at the onset of the play is already exhibiting his desire to escape life. Works Cited Becker, Ernest. The Denial of Death. New York: The Free Press, 1973. Cox, Marjorie C. â€Å"Adolescent Processes in Romeo and Juliet.† Psychoanalytic Review 63 (1976). 379-392. Faber, M.D. â€Å"The Adolescent Suicides of Romeo and Juliet.† Psychoanalytic Review 63, (1976). 169-181.

The History and Evolution of the European Common Agricultural Policy

The years immediately following the Second World War, Europe was marked with food shortages, a situation that needed immediate and lasting action. The food supply must and will be secured, and agricultural production within the region revitalized. This necessity would then prompt the beginnings of a Common Agricultural Policy (CAP).The beginnings of CAPThe Cap has its roots in the signing of one of the Treaties of Rome[1] in 25 March 1957, which established the European Economic Community[2] (EEC). Article 38.4 of theTreaty Establishing the European Community refers specifically to the creation of a common agricultural policy among Member States that would accompany the implementation of a common market for agricultural products (3). Article 39 then presents the objectives of a common agricultural policy:1.  Ã‚  Ã‚  Ã‚  Ã‚   to increase agricultural productivity;2.  Ã‚  Ã‚  Ã‚  Ã‚   to ensure a fair standard of living;3.  Ã‚  Ã‚  Ã‚  Ã‚   to stabilize markets;4.  Ã‚  Ã‚  Ã‚      to assure availability of supplies;5.  Ã‚  Ã‚  Ã‚  Ã‚   to ensure that supplies reach consumers at reasonable prices. (3)The Stresa Conference[3] in July 1958 established the three key principles of the CAP namely: market unity (for free movement of agricultural products within the EU), financial solidarity (a communal treasury finances all of CAP’s expenses), and community preference (European products were to be given priority over products from outside the region) (Delayen 1). Finally, the year 1962 marked the CAP’s coming into force.The CAP started with the short-term goal of addressing the food supply problem by providing subsidies and granting high prices to farmers to produce more. There is a clear link between production and subsidy: the more farmers produce, the more they will earn.Aside from subsidies, the CAP also provided for financial assistance aimed at the development of farming: funds were directed towards farm management and enlargement, and acq uisition and management of proper and up-to-date technological skills.Moreover, the CAP created practical measures like aid for early retirement (to provide avenues for the next generation of farmers), assistance for training and development, and financial incentives for the less favored areas[4] (LFA).Farmers working in less favored areas are given compensation for income loses that they incur. (Rural development in the European Union 5) By the 1980s, the CAP was continuously seeing favorable results and agricultural production continued to increase. The CAP’s long-term goal of self-sufficiency is finally made secure.However, unhampered abundance in agricultural products led to a surplus—more than what the region could consume was being produced. Excess commodities were stored, distributed within the EU, or exported (supported by export subsidies) (The Common Agricultural Policy Explained 4).However, this was not enough—more costs were incurred, prices were dis torted, and negative environmental effects were becoming manifest. There was a growing concern towards environmental sustainability of agriculture and the CAP just had to cope with the changing times and circumstances.The milk quota in 1983 was just the beginning of a series of reforms. To control dairy production and costs, producers were given a certain quota. If producers go beyond their quota, taxes would be appended. Then in 1992, the Mac Sharry reform[5] introduced the vital direct payments. Production was limited and prices reduced, but farmers were given direct payments as compensation (Delayen 2).The EU also began taking the environmental aspect into consideration by providing incentives to farmers who apply farming measures that help in protecting the environment. With the coming of the new century, the food supply is secure and self-sufficiency not an issue anymore. The emphasis of the CAP has changed and therefore, policies must undergo an overhaul.The CAP todayChange wa s inevitable and necessary, thus, Agenda 2000[6] came into being. The reforms initiated focuses on increasing productivity and competitiveness of agriculture in the EU while taking environmental sustainability into account, and establishing clear rural development policies. It was also in Agenda 2000 that the system of funding was reorganized and a specific budget was set.Regarding productivity and competitiveness, the EU remains a strong player in the world market. With the coming of the Agenda 2000, price cuts were implemented (15% for cereals, 15% for dairy products, 20% for beef and veal) so as to stabilize supply and demand in the market (Agenda 2000—A CAP for the Future 1).The quality and circumstances involved in food production and the relationship between production and the environment has replaced the necessity of securing the food supply. In line with this, the CAP established agri-environment measures.Optional cross-compliance was introduced. Incentive is given an nually to farmers who commit to these agri-environment measures. However, non-compliance would mean reduction or cancellation of this incentive. The uncollected funds are then added to funds for rural development or agri-environment measures (Agenda 2000—A CAP for the Future 1).Funding under the Agenda 2000 is now divided into two pillars. Whereas before, funding of the CAP only provided for market management (market-related subsidies) and direct payments to farmers, it now has a second pillar to provide for rural development policies.Funding for the second pillar is financed by both the EU and individual Member States, and encompasses agri-environment measures, aid to farmers working in LFAs, and commitments to higher quality of food, and animal welfare.   (The Common Agricultural Policy—A Policy Evolving with the Times 4).

The Importance Of A Woman Breastfeeding Her Baby Essay

Women are usually faced with an overwhelming variety of choices to make immediately after the birth of their baby, particularly deciding on whether they have a desire to breastfeed or not. This can be followed up with digesting related information and advice given by midwives aiding into making the right decision. The intention of this essay is to justify in depth the significance of a woman breastfeeding her baby, conducting the benefits of both perspectives of the mother and baby. These benefits will be established, outlining the reason as to why breastfeeding is more effective. This will be done by covering topics such as existing nutrients in breast milk, protection of infection and disease in an infant, the unique physical bond between the mother and infant which all lead up to better health outcomes. Methods of a midwife’s role in distributing a health promoting approach to encourage exclusive breastfeeding, whilst applying measures of support and education will also be explored. Human breast milk is a biological fluid that supplies an adequate amount of nutrients and components, which assures the effective development and growth of a newborn (Ebringer, FerenÄ Ãƒ ­k, KrajÄ oviÄ , 2008). It is one of the healthiest methods of feeding a newborn from the time they are born, until the first six months of life and can be prolonged to up to 2 years or more. Several studies have strongly outlined the numerous benefits that breastfeeding has to offer, in which assists both theShow MoreRelatedBreastfeeding in Public: a Womens Rights Issue967 Words   |  4 PagesBreastfeeding is a healthy, natural ability of every woman, and should therefore be socially acceptable and supported by everyone. 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