This course will introduce the student to the legal regime that applies to international letters of credit, the principal mechanism for financing imports and exports. The course has no prerequisites and assumes no prior knowledge of international trade or finance. Instead, the student will be introduced to the basic structure of an international transaction that employs a letter of credit to finance the sale of goods. The student will also study the various contractual relationships that arise out of the transaction and the connection that each relationship has to the financing arrangement. The overarching objective is to help the student understand the various facets of the financing arrangement, the role that each party plays in the arrangement, the legal exposure that each party might assume whenever a letter of credit is used to finance the transaction, and the potential ways for managing any inherent risks.
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