3. Documentary Credit (Letter of Credit) 3.1 Documentary credit is an instrument issued by a bank (named issuing or opening bank), at the request of the buyer, evidencing the bank’s undertaking to the seller to pay a certain sum of money provided that specific requirements set out in such instrument are satisfied. 3.2 A documentary credit provides the exporter with a secure method of payment, provided that he complies with certain terms and conditions stipulated in the credit. This is the most significant aspect of documentary credits. 3.3 Thus, a documentary credit is a conditional guarantee of payment by the issuing/ opening bank.
An agency interrelation is a disarraying agreement where the actions and words of an agent exchanged with a third-party joins the principal. The law of agency requires a party to employ another person to do their work, sell their goods or take decisions for them. This fiduciary relation
The buyer takes care for the costs from the point where the goods reach to the destination place. The transfer of the risk from the seller to the buyer occurs at the place of delivery once the goods are delivered from the seller to the freight forwarder. CPT can be used for all types of transport. CIP – Carriage and Insurance Paid To This term is quite close with the abovementioned (CPT) with its main difference being that the seller have to sign and pay an insurance for the goods that can be transferred to the buyer. Thus, the transfer of the risk from the seller to the buyer occurs at the place of delivery, while seller pays for transport and insurance to the destination.
There may be a contract of sale between one part-owner and another part-owner. A partner may, buy the goods from the business in which he is a partner and vice-versa. (2) Mutual Consent: Just the presence of two parties is not sufficient. The parties must agree on the transfer of property. (3) Transfer of Property: What a contract of sale stipulates is the transfer of property i.e.
Agency Theory’s central premise is the assumption that the interests of two participants, who enter a contractual relationship, diverge. In AT, the two parties in this relationship are known as the principal and the agent. The principal requires the agent(s) to perform a number of delegated tasks and thus attributes some decision-making authority to him/her (Bergen et al., 1992; Eisenhardt, 1989; Jensen and Meckling, 1976). While this relationship acts as a utility maximizer for both partners, the agent may not always perform his/her tasks as demanded by the
This may be included in the length of the contract terms or may be a collateral contract to this effect. (Gentleman’s agreement). On this basis, the arbitrator can depart from the general rule. The foundation of arbitration is mutual consent and agreement of the parties. Unless there is an agreement contrary , the tribunal is obliged to adopt the principle that cost follows the event.
CHAPTER 1 INTRODUCTION INSURANCE Insurance means equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a risk management form primarily used to hedge against the risk of uncertain loss. An insurer is selling the insurance; the insured is the person buying the insurance policy. The money to be charged for a certain amount of insurance coverage is called the premium. The insured receives a contract which is called the insurance policy, it details with the conditions and circumstances under which the insured will be financially compensated.
Categorical Imperative and Duties Kant divides duties into two groups- duties towards others and duties towards self. They are further subdivided into strict and meritorious duties. Lets consider these duties one by one in light of Categorical Imperative. Strict Duties to others : Consider a person is in need of money. He has no other option left except to borrow it from someone else.
He said that Bai’ ‘Inah as "Buying an item from someone in debt, then after the item is received by him (qabdh), goods are resold to the original owners or to third parties either by cash prices that are lower or higher, or in debt or with exchange of goods. " While another jurist like Imam Al-Haskafi said that "Selling a delayed goods for profit. The debtor will resell it at a lower price in order to pay the debt "as the opinion for definition of this transaction. According to Imam Al-Zaila`i,he has his own definition about Bai’ ‘inah. That is a transaction of "sell goods in installments, and buy it back at a lower price in
(i) Mudarabah Model The mudarabah takaful model works on the following basis: takaful operators (known as shareholders) bear all expenses incurred in operating the business and as a reward are entitled to share underwriting excess and investment profits. This is an adjustment of mudarabah Islamic commercial contracts between takaful operator and participants (or policyholders) who provide the capital. The biggest dissent of this model is underwriting excess is non-profit. It is excess of premium over claims known as surplus. This business model is difficult to manage where expenses are fixed but income (surplus) is not.