Tuesday, April 30, 2013

Wanted: A more positive article 15


Wanted: A more positive article 15[1]

The expressions “reasonable time” and “without delay”, because of their non-specific nature, came under intense scrutiny during the drafting of UCP 600. “Without delay” survived, but the appearance of the expression “reasonable time” in sub-article 13(b) of UCP 500 was to be its last. The latter was removed completely from UCP 600. Five years on, few seem to feel its absence.
“Without delay” conveys a greater sense of urgency than “reasonable time”. “Reasonable time” stretches the permitted time to an outer limit that could perhaps be justified under a given circumstance. Yet, both of the expressions are subjective in nature; neither indicates any definitive time frame nor a globally acceptable standard. It’s debatable whether any period could, in all fairness, be set as a “reasonable time”. Hence, it could not be part of any internationally applicable rules. If considered from a technical or legal point of view, a definite number of days was desirable. But even in its absence, most people preferred clear definitions and guidelines, black-and-white solutions over stipulations that were indefinite or vague in nature. A definite period was easier to handle. Compliance, or its breach, was easier to determine.
“Without delay”
The term “without delay” posed similar problems.  (Contd.....)

[The complete article is available in the book 'Beyond Trade Finance', published on 13-Apr-2021 by Notion Press, and available at https://notionpress.com/read/beyond-trade-finance or at https://www.amazon.in/dp/1638508666]
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[1] Published: DCInsight, Page 10, Vol 18, No. 4, October-December 2012.

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