International Trade Law and Its Significance in Business - Desklib

INTERNATIONAL TRADE LAW 1
INTERNATIONAL TRADE LAW
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INTERNATIONAL TRADE LAW 2
INTRODUCTION
In the business world, the need for law is essential, and this is because the law plays a
paramount role in bringing harmony and guiding the traders. The law states the obligations of the
parties involved with the aim of making sure that each party is aware of their responsibilities.
The Hague-Visby rules came to dictate what should happen between the shippers and the traders.
The bill of lading is also featured by the Hague-Visby Rules, and it is a document that gives the
third party the rights and obligations on a contract basis. The third party, in this case, is the
career, and he or she acknowledges that he or she has acquired the specific goods thus assuming
the responsibility to make sure that they reach the intended destination safely. The two most
essential parties in the bill of lading are the buyer and the carrier. The shipper acknowledges that
the goods that the buyer states to have bought have been placed on his or her ship and from then,
he or she assumes the full responsibility of the products. However, the buyer must provide the
document to the carrier. The bill of lading serves three essential roles. The first role is as a
receipt to the goods that have been shipped. The second role is as a document that shows the
agreement between the carrier and the owner of the cargo and the third is as a title of the goods
that are being shipped. The focus on the case of Owners of the cargo lately laden on board the
ship "David Agmashenebeli" v Owners of the Ship "David Agmashenebeli" [2002] All ER (D)
535 (May) will foster the understanding of the international trade law and its essence in the field
of business.
THE LAW OF INTERNATIONAL CONTRACTS
The world has grown into a global village, and that has brought many nations together in
terms of trade. As a result, the need to have a law in place that governs the activities that take

INTERNATIONAL TRADE LAW 3
place in the international business platforms has been seen to be significant (Mansfield and
Reinhardt, 2015). The Hague-Visby Rules come in place to make sure that the business
environment is suitable for people who are interested in investing in the global markets. It is
imperative to note that when business activities take place between different nations, using the
law of one of the countries might be unfair to the other party (Pagnattaro and Park, 2015). The
reason behind it is because different nations have proved to have different laws. Therefore, it
becomes vital to have a law that generally looks into all parties (Fooks and Gilmore, 2014).
Various characteristics of the law of international contracts have made the law one of the best in
the global business platform.
One of the significant characteristics in the Hague-Visby Rules is the nature of its
diversity. For example, when a trader comes from Asia and uses the vessel that comes from
Europe and uses the same vessel to transport goods that should be taken from America to Africa,
it is evident that there is the involvement of four regions (Andrews, 2016). Different regions
have their different laws that govern the operations that take place within their boundaries, in this
respect, it becomes evident that having a law that takes care of the issue at hand is rare (Hung,
2015). The Hague-Visby Rules come in place to make sure that despite the complexity of the
matter and the diversity of the parties that are involved, fairness, law, and order are promoted.
Hague-Visby Rules comfortably fit in the laws of international contracts because of their
jurisdiction as well as the matters that they deal with (Fooks and Gilmore, 2014). It is paramount
to note that these are rules that have respect for the national laws but when it comes to an
international issue, they take center stage thus replacing the national laws.
In Hague-Visby Rules, there is the aspect of no choice. In this specific case, the parties
that are involved might not have an agreement on the exact law that is supposed to be used. The

INTERNATIONAL TRADE LAW 4
reason behind it might be because none of the laws in their respective nations meet their needs
(Red fern, 2015). When the case reaches to this point, the parties are given no other choice but to
use Hague-Visby Rules. The reason for doing so is because of the complexity of the Rules as
well as their effectiveness in fostering fairness and justice. There is a dire need to understand that
the reason why the Hague-Visby Rules were constituted was to make sure that when there lacks
law that can guide two or more partners who come from different nations, it becomes paramount
for there to be a universal law (Katsivela, 2017). Hague-Visby is not based on any nation, and it,
therefore, does not favor the law of a specific nation. In this respect, it is evident that the parties
that might be involved in any conflict are likely to trust the law more than they would have
trusted a law of either of their host nations. Therefore, despite the parties being denied a choice
to use either of the national laws, they are exposed to Rules that look more into the interests of
both of them than the interests of one of the parties.
It is with no doubt that the Hague-Visby Rules come in place to establish a system that is
globally recognized and appreciated. The global business platform has been expanding over the
years, and that means that many people from different parts of the world come together for the
sake of doing business together (Pauwelyn, 2016). Law and order are essential in any given
environment. However, when there is the international contract law, contracts that bind the
international business persons are established thus creating an environment that is suitable for all
international investors.
THE SYSTEM OF DOCUMENTARY CREDIT WHICH COMBINE TO REGULATE
THE RELATIONSHIP BETWEEN THE PARTIES BUYING AND SELLING THE
GOODS