Factors Contributing To The Use Of Commericial Letter (S) Of Credit On International Business Transaction(S): A Case Of Manufacturing Industries In Kenya
The use of letters of credit has become a very important aspect of international trade due to the nature of international dealings including factors such as distance, differing laws in each country and difficulty in knowing each party personally. The LC therefore helps both the importers and exporters in the sense that the importer will be waved the liability of incurring bad debts and on the other hand the exporter is saved the fear of losing his money when dealing with the importer directly. It is therefore a hedging and also the most sophisticated payment. This study attempted to establish factors contributing to the use of Letter of credit in international business aspiring to address the objectives which touches on the impact of exporter/importer standing bank credibility and its association to using the LC, explore the extend on the bank inefficiencies and the central bank policies contributing to the LC ,how the bank financing to the company contributes to the application of the LC method and finally ascertain which risks and challenges are a major concern to pushing the use of LC. The study targeted forty Companies from the manufacturing sector in Kenya considering industries on areas of Plastics and Rubber, Chemicals and Allied, Building, Mining and Construction, Food and Beverages and Pharmaceuticals and Medical Equipment’s considered to be using LC for its payments. Simple random sampling technique was used in this study to enable equal chances of all the targeted companies being selected. The study also used respondents with expertise in this area of study to answer questions being financial controllers, procurement or logistics manager and directors. The primary data was collected using structured interviews and questionnaires which were then analyzed using statistics, Graphs and pie charts. Summary of the findings was discussed and recommendations made.
The Limits of Liability, Keeping the Floodgates Shut
Preliminary Observations W.V.H. Rogers, et al. Limitation and Mitigation in German Tort Law C. v. Bar. Direct and General Limits on Tort Damages in the United States D.B. Dobbs. European Tort Law: Hellenic National Report K.D. Kerameus, Kl. Roussos. Mitigation of Damages under Austrian Law and Ideas for Future Regulations H. Koziol. La moderation de la reparation du dommage dans le droit belge de la responsabilite civile extra-contractuelle A. van Oevelen. Keeping the Floodgates Shut: "Mitigation" and "Limitation" of Tort Liability in the English Common Law W.V.H. Rogers. How to Keep Liability Within Reasonable Limits? A Brief Outline of Dutch Law J. Spier. Moderation et limitation des responsabilites et des indemnisations: Rapport sur le droit francais G. Viney. Determination et reduction de la reparation en droit suisse P. Widmer.
Bankers' Commercial Credits among the High Trees
It is not often that cases concerning bankers' commercial credits reach the Court of Appeal; such a case was W. J. Alan & Co. Ltd. v. El Nasr Export and Import Co. hereafter referred to as the El Nasr case. It would be regrettable that such a case should pass without comment, particularly as the decision also touched important principles of the general law of Contract. This paper will consider firstly the opening of a bankers' commercial credit in two respects: (i) it has recently been contended that whether the credit binds the issuing bank to the seller depends on whether the buyer's duty to procure the credit is a condition precedent to the contract of sale; it will be suggested that the buyer's duty is usually no more than an ordinary term of the contract. (ii) It has been argued that the procuring of a credit by the buyer discharges absolutely his duty to pay the seller under the contract of sale. It will be seen that the courts have now rejected this argument and for good reason. The second part of this paper considers the waiver of duties under the credit, leading to an appreciation of the doctrine sometimes called equitable or promissory estoppel. In particular it will be contended that (i) he who benefits from the waiver must suffer a detriment, although of a rather diluted kind; and (ii) that the waiver may not always be withdrawn, even after the giving of reasonable notice.