Authorised by Academic Registrar, April 1996
Objectives On completion of this subject, students should (1) be able to advise clients on the Australian law and practice and the international agreements and model rules governing (a) the use of negotiable instruments, documentary collections and commercial letters of credit in financing international trade; (b) standby letters of credit, independent guarantees and performance bonds and (c) domestic and international electronic funds transfers and apply these legal rules to solve problems arising in these transactions; (2) be able to identify which jurisdiction's law governs the various aspects of documentary collections, letters of credit and international funds transfer transactions; (3) have a familiarity with (a) the conflicts of law issues that arise in international banking transactions; (b) the principal sources of law governing these transactions under English, Australian and United States law (with some comparisons with civil law) and (c) the differences between the applicable rules in these legal systems on selected important issues; and (4) have developed legal research and writing skills and skills of oral presentation in a seminar context.
Synopsis The role of banks and financial instruments in financing trade transactions and in international payments. Use of bills of exchange and promissory notes, documents of title, documentary collections and commercial letters of credit in trade finance. Standby letters of credit, independent guarantees and performance bonds. Law of payments. Domestic and international funds transfer systems and rules and rights and liabilities of users and providers. Relevant international agreements and model rules applicable to these transactions. Conflicts of law issues that arise in international transactions and comparisons of rules of major common law systems.
Assessment Research paper (5000 words): 50% + Class participation/presentation: 10% + Supervised examination (2.5 hours): 40%