laya joneydi; Ayyoub Mansouri Razi
Abstract
Abstract:Usage of Multi-tiered dispute resolutions clauses in commercial contracts , in particular long-term contracts is very common. Theses clauses comprise different stages of ADR (Alternative Dispute Resolution) with Arbitration or litigation. Agreement or decision made in these pre-arbitral or pre-litigation ...
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Abstract:Usage of Multi-tiered dispute resolutions clauses in commercial contracts , in particular long-term contracts is very common. Theses clauses comprise different stages of ADR (Alternative Dispute Resolution) with Arbitration or litigation. Agreement or decision made in these pre-arbitral or pre-litigation stages such as the mediator`s opinion are not binding upon the parties. So the issue is if it is mandatory for parties to follow all steps contemplated in these clauses or not? And what makes these pre-arbitral or pre-litigation steps binding? In this article different relevant opinions will be illustrated. Through comparative studying the case law of ICC, English courts and other countries requirements for pre-arbitral or pre-litigation steps will be illustrated. It is concluded that parties agreement has a binding nature and arrangement must be followed as provided in these clauses and requirements that make different tiers of these clauses as enforceable are clarified. Findings show that if relevant requirements including Usage of binding words,exact drawing of each step and parties` good faith are met, judicial and arbitral authorities take agreed steps in these clauses as binding. In authors` opinions this practice which is in consistent with the principle of freedom of Contracts is correct.
Ali Moghaddam Abrishami; Khadijeh Jamalinia
Abstract
Numerous disputes have arisen from frauds and Errors in the process of documentary credit transactions. This issue has caused an obstacle in financing international trade law and Cash flow in banks. It also imposes a huge cost on the banks. International Chamber of Commerce has created a new payment ...
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Numerous disputes have arisen from frauds and Errors in the process of documentary credit transactions. This issue has caused an obstacle in financing international trade law and Cash flow in banks. It also imposes a huge cost on the banks. International Chamber of Commerce has created a new payment Method, called Bank Payment Obligation (BPO), in order to address this problem. By introducing an electronic system through Bank Payment Obligation, International Chamber of Commerce has endeavoured to deal with ambiguous and uncovered areas of documentary credit. To assess whether this new method (BPO) would be able to offer a solution to the problem of fraud and Errors in documentary credit transactions, this article examines documentary credit by discussing relevant case law and by identifying the extent to which Bank Payment Obligation would respond to existing problems. It concludes that although Bank Payment Obligation has a number of similarities with Documentary Credit, its structure and nature in optimal conditions would be able, to a large extent to prevent fraud and Errors in international payment and reduce disputes in this field accordingly.
