In practical law the international standby practice (ISP98) is widely used worldwide as a rules in international trade. Whereas Uniform Rules of Demand Guarantee (URDG75) is used for demand guarantee and Uniform Customs Practices (UCP600) are used in documentary letter of credits, ISP are used for standby Letter of Credit for the purpose to support payment, both in guarantying default and succeed performances.
In the USA, guarantee bond is not allowed to guarantee any payment. In addition, UCP mostly emphasised in the rules that is related to customs; the activity of export and import with the letter of credits as its instruments. Thus, in 1998 through International Chamber of Commerce, this set of rules was released to govern the rights and obligations of any parties in the standby letter of credit. There are a couple of points which is not ruled by UCP but coved by ISP98. Such as automatic extension, transfer on demand and separate undertaking. In ISP98 if it is explicitly states that it is subject to automatic amendment, thus the amendment is automatically valid without any consent. The amendment is not only limited in the increase or decrease of the amount but including expiration date extension and etcetera. As it is automatically extending, the amendment may also become effective “without amendment” clearly states. Just like others documents, the nature characteristics of standby letter of credit is unconditional and irrevocable. As a standby it is not transferable automatically just like the amendment rule. A standby is transferable if it states so. Furthermore, if there is no more information regarding the statement of transferable the withdraw means; may be transferred in their entirely more than once or may not be partially transferred. *The more detail discussion of ISP98 will be continued.
0 Comments
Psychology of (Political) activism: from religious movement to critical consciousness in indonesia12/6/2018 (WORK IN PROGRESS)
Originally named after a historian from Arcadia megalopolis in ancient greek (200-177BC). This classic political and constitution changes was firstly taught to me when I was in high school and could be a reference. The anacyclosis of political system according to Polybius encompassing: Monarchy, Aristocracy and Democracy. Whereas the mobocracy consists of: Tyranny, Oligarchy, and Ochlocracy. It was easy for a teenage me to remember all the phase because it was like a transverse wave: ups-downs, reach a peak and extremely plunged. From monarchy declines to tyranny, from tyrany geneses to aristocracy, from aristrocracy declines to oligarchy and so on. Henceforth, here are the points followes by a nutshell elucidation of each systems:
Questions and discussion are welcomed, also critcism, correction and suggestion are pleased. There are some substantial reason for government to intervene the citizen in private contract. Government interventions are the the part of political action to protect the people to maintain a well-organized society. Thus, the intervention in private contract is important things to do for the government. In addition, some people argue that government intervention on behalf of consumers as its citizen is the right approach. Government intervention generally accepted aims to prevent consumers from unavoidable risk that might happen.
In a democratic country, individual choice is highly respected in which resident should not be imposed any strict interventions. Government intervention in private contract should be limited and let consumers choose the most suitable option of their own. In developing countries or third world countries some interventions can be suspected as a conspiracy to defense the capitalists in the form of multinational corporations or local trans-corporations owned by the conglomerate. Nevertheless, I am unconvinced of this stance. Consumers and the trade mechanism in national flows are considered as subordinate instrument of national political systems and the policies. Government, intervention and policy have the responsibility for the ruled one. The government’s role to create a better life of society through intervention outweigh the right of people to do anything they want because there are various causes that can create an unstable conditions. For example, the health or car insurance are regulated by government so that when people get sick or have accident they have something to cover them up and can be referred as one of nation’s prosperity indicator, to show that a nation is wealth enough the government did a good effort. In conclusion, government through private contractual intervention on behalf of consumer aims to protect its people from the risk and prevent consumer from things that can harm the people is a right approach. This is not only the contract where the government will stand behind but a regulation in order to govern a nation. The intervention as aforementioned is aimed to maintain public stability and create a comfortable environment for its resident. Thus, government should keep intervening in private contractual relations for the crucial matters. |
Archives
June 2019
Categories |