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The law of abstract payment undertakings fashions a rule that the undertakings are, as their name implies, independent of the transactions out of which they arise. That independence principle admits of an important exception if the beneficiary of the undertaking fraudulently seeks payment when he has no colourable right to payment. The parameters of the fraud exception to the abstraction principle are of necessity imprecise. Although courts have developed a number of limits to the exception, some courts, unaware perhaps of the danger they pose to the commercial efficacy of these undertakings, sometimes engage in wide-ranging fraud inquiry. This article contends that courts must limit the inquiry. The article illustrates the problem with analysis of three cases, one each from Australia, Canada and the United States. [PUBLICATION ABSTRACT]
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TERMINOLOGY AND LEGAL FRAMEWORK Three categories of international rules may govern letters of credit: * The Uniform Customs and Practice for Documentary Credit, 2007 Revision, ICC Publication 600 (UCP), which were prepared by the International Chamber of Commerce; * The International Standby Practices ISP98, 1998, ICC Publication 590 (ISP98), which were prepared by experts in the United States and subsequently endorsed by the International Chamber of Commerce; * The Uniform Rules for Demand Guarantees, 2010 Revision, ICC Publication 758 (URDG), which were prepared by the International Chamber of Commerce. By contrast, a standby letter of credit is generally an undertaking to pay the purpose (but not the legal nature) of which is similar to a guarantee:2 for example, the issuing bank will undertake to make a payment to the beneficiary upon presentation of a demand by the beneficiary stating that the applicant is in default to perform its obligations under a certain contract. [...]letters of credit are frequently used in purely domestic transactions. The leading Canadian case in the area of letters of credit is the Supreme Court of Canada decision in Bank of Nova Scotia v. Angelica-Whitewear Ltd. and Angelica Corporation3 (AngelicaWhitewear).
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The notion of confidence, which is the basis of any commercial relationship, is of particular importance in matters of international commercial contracts. This need for security has given rise to two financial instruments of which one is more adapted to the interests of the buyer (contractual guarantee), and the other, to those of the vendor (documentary credit). In spite of these diverging purposes, both have as a common element the aim of strengthening the contractual relationship. It is the requirement of good faith as well as the individual interests of the parties which has lead to the creation of certain juridical instruments capable of ensuring fulfilment of the buyer's or seller's obligations, and which exist independently of the contract of sale itself. However, the fitularies of these rights cannot exercise them in an abusive fashion. In cases of fraud, the separate obligation assumed by a third party, such as a bank or an insurance company, ceases to exist autonomously. Any prestation normally owed may no longer be claimed if the court, rather than the bank (except in certain circumstances), so decides.
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An article from McGill Law Journal / Revue de droit de McGill, on Érudit.
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This article examines “undefined” terms (art. 1512 CCQ), an oft-neglected topic in contract law. By leveraging judicial precedent concerning its application, the article identifies conditions for its application and proposes a structured analysis to help courts fix an appropriate term. The proposed analysis will also help to distinguish undefined terms from uncertain terms (art. 1510 CCQ), in the hopes of helping put an end to uncertainties.
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No matter how one feels about supervisory and managerial. unionism, this level of organization must be pitted, as both concept and fact, against the larger context of law, sociology, economics, politics and business administration in a given society. This essay will develop no thesis, « pro » or « con ». It will lay emphasis on thelegal aspects, hoping for others to indicate, through careful research, the important differences (social, political, economic and administrative) existing between the European context (in which some form of supervisory and managerial unionism flourishes) and the North-American one (in which such unionism is practically non-existent).
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Disclaimer: This summary was generated by AI based on the content of the source document.
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Disclaimer: This summary was generated by AI based on the content of the source document.
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Disclaimer: This summary was generated by AI based on the content of the source document.
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Disclaimer: This summary was generated by AI based on the content of the source document.
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