A Street Car Named Desire Essay 3

In the story we’re reading in class titled, â€Å"A Street Car Named Desire†, Stanley Kowalski appears to have a bad temper. Stanley Kowalski is one of the main characters in the book. He has showed very bad behavior throughout the book, as well. This behavior goes as far as abuse towards his wife. Throughout this written assessment, I will describe how Stanley is characterized and I’ll state why I believe Stanley is the way he is. I will also be stating my opinion on whether or not I have empathy for Stanley. On page 107 in the book, Stanley’s rage gets out of control. I believe it’s out of control because all Stella asked of Stanley to do is to clean up his plates and he broke them. I believe Stanley would be characterized as aggressive in this scene. I think this because he had no right to break plates. He was simply asked to clean up, and he freaked out because he was told what to do. Also, I believe he’s acting ignorant because he quotes Huey Long and says, â€Å"Every man is a king,† when Long was referring to both men and women. Next, on page 109, Stanley is acting nice, and tells Stella everything will be alright after Blanche leaves the household and the baby is born. He then changes the subject and starts talking about sex. I believe Stanley can be characterized as a person who only cares for sexual relations. I think this because he never cares about how she’s feeling. He’s always self-centered and only caring about what he wants. The last page, page 112, Stanley is talking about sex, once again. He’s talking about how Stella and himself met, and how they â€Å"had them colored lights going! † I would characterize Stanley as, once again, a self-centered man. I think this because he doesn’t care about anything other than the sexual relations him and Stella had when they met. Also, he’s only talking about that, and not how much fun they had together doing other activities. I believe Stanley is the way he is because of his drinking. I believe he’s abusive because he drinks so much, and he’s so impaired by it, he doesn’t know what he’s doing. I believe this relates to his ways, as well. Also, I don’t think he cares much about other people because he’s a very self-centered man. Also, I believe his ego is bigger than him. This means he doesn’t really care for other people’s feelings, as long as he’s still perfect. I have no empathy for Stanley. I have no empathy because he’s a very rude person, and rude people do not please me. If he was nice and no one understood him, (which might be the case, I don’t know) then maybe I’d have a bit of empathy for him. Also, I don’t have empathy for him because he hit his own wife. Drunk or not, he should know never to hit a women, it’s not polite. No one should have empathy for Stanley because he already has so much empathy for himself, it could supply him for the rest of his lifetime, and more.

Lateral thinking

Lateral thinking is a term coined by Edward de Bono, a Maltese psychologist, physician, and writer, although it may have been an idea whose time was ready. De Bono defines Lateral Thinking as methods of thinking concerned with changing concepts and perception. He invented the term ‘lateral thinking'. It was first written up in a book called â€Å"The Use of Lateral Thinking†. (1967) It is similar to creative thinking. It is also seeking to solve problems by unorthodox or apparently illogical methods. â€Å"A set of systematic techniques used for changing concepts and perceptions and generating new ones†, (de Bono, 1967) â€Å"Exploring multiple possibilities and approaches instead of pursuing a single approach.† (Infinite Innovations, 1997)There are numerous ways of defining lateral thinking, ranging from the illustrative to the technical. First, â€Å"You cannot dig a hole in a different place by digging the same hole deeper† (de Bono, 1997a) This m eans that trying harder in the same direction may not be as useful as changing direction. Effort in the same direction (approach) will not necessarily succeed. Second, â€Å"Lateral Thinking is for changing concepts and perceptions† (de Bono, 1997b) With logic you start out with certain ingredients just as in playing chess you start out with given pieces. But what are those pieces? In most real life situations the pieces are not given, we just assume they are there. We assume certain perceptions, certain concepts and certain boundaries. (Wikipedia, 2006)Lateral thinking is concerned not with playing with the existing pieces but with seeking to change those very pieces. Lateral thinking is concerned with the perception part of thinking. This is where we organize the external world into the pieces we can then ‘process'. (de Bono, 1994b) Third, â€Å"The brain as a self-organizing information system forms asymmetric patterns. In such systems there is a mathematical need f or moving across patterns. The tools and processes of lateral thinking are designed to achieve such ‘lateral' movement. The tools are based on an understanding of self-organizing information systems.† (de Bono, 2004). This is a technical definition which depends on an understanding of self-organizing information systems.Fourth, â€Å"In any self-organizing system there is a need to escape from a local optimum in order to move towards amore global optimum. The techniques of lateral thinking, such as provocation, are designed to help that change.† (de Bono, 2005). This is another technical definition. It is important because it also defines the mathematical need for creativity. Lateral thinking is about reasoning that is not immediately obvious and about ideas that may not be obtainable by using only traditional step-by-step logic.Techniques that relate lateral thinking to problems are characterized by the shifting of thinking patterns away from predictable or entre nched thinking to new or unexpected ideas. A new idea that is the result of lateral thinking is not always a helpful one, but when a good idea is discovered in this way it is usually obvious in hindsight, which is a feature lateral thinking shares with a joke. (Harleys, 2004) Edward de Bono points out that the term problem solving, â€Å"implies that there is a problem to respond to and that it can be resolved. That eliminates situations where there is no problem or a problem exists that cannot be resolved. It is logical to think about making a good situation that has no problems, into a better situation. Some times a problem cannot be solved by removing its cause.† (de Bono, 1994a)Lateral thinking can be used to help in solving problems but can also be used for much more. (Wikipedia, 2006) With ‘parallel thinking' both sides (or all parties) are â€Å"thinking in parallel in the same direction.† (Davis, 2005) There is co-operative and co-ordinate thinking. The d irection itself can be changed in order to give a full scan of the situation. But at every moment each thinker is thinking in parallel with all the other thinkers. There does not have to be agreement. Statements or thoughts which are indeed contradictory are not argued out but laid down in parallel. In the final stage the way forward is ‘designed' from the parallel thought that have been laid out. (Davis, 2005)MethodsAn easy and convenient way of carrying out ‘parallel thinking' is the Six Hats method which is now being used commonly worldwide both because it speeds up thinking and also because it is so much more constructive then conventional argument thinking. (de Bono, 2005) The use of the Six Hats method is now growing speedily globally. Those who have become familiar with the technique look back at argument as primitive, crude and ego-driven. (de Bono, 2002)â€Å"With the Six Hats method you can still show off. But you now show off by performing better than anyone else under each hat. It is no longer a matter of proving someone else to be wrong. Our ingrained habits of critical disagreement are so often not just a matter of sensible caution, but a mixture of ‘power plays' and ego strutting.† (de Bono, 2003) On the other hand, there is a necessary and proper place for caution. â€Å"That place is provided by the ‘black hat’.† Under this hat every person sets out to look for dangers, risks, shortfalls, problems, etc. Even those who most like the idea make a authentic effort to recognize the faults. Power plays have no place. There is no longer an chance to show that some particular individual is wrong or that you are smarter than that person. (de Bono, 2003)There are six symbolic hats, each one a diverse color. The thinker wears one hat at a time and only uses the mode of thinking which goes with that particular color. â€Å"The white hat is neutral.† While wearing this hat, the thinkers simply focus on in formation. What information is available on the subject, and what is missing? â€Å"The red hat signifies emotion and intuition – aspects of human thinking which are traditionally excluded from ‘rational' discussion. But since they still exist, they often get expressed indirectly.† The red hat allows them to be expressed usefully and openly. â€Å"The black hat puts the thinkers into the role of judge.† Wearing this hat, they assess the risks associated with an idea and see how the idea fits with what is already known (our values, experience, objectives, etc.). (de Bono, 2003)â€Å"The yellow hat brings out the positive side of assessing an idea.† With this hat on, the thinkers look for the values and benefits in an idea. As with the black hat, the thinkers have to use logic when wearing the yellow hat.   â€Å"The green hat signals deliberate creative effort.† Under this hat all the possibilities can be discovered, using precise techniques of lateral thinking, like provocation. This is an chance for vision. Lastly, the â€Å"blue hat is there for the overview.† (de Bono, 2003)   It is typically worn by the person chairing a meeting but can be used by anyone. The process of thinking is managed with this hat and all the different threads drawn together. (Hellers, 2006)How can it be applied to the corporate world?Lateral thinking is of very great importance in such a way that it gives a new and an alternative way of solving a problem. By the use of lateral thinking, an individual can recognize dominant ideas that polarize perception of a problem, the person can search for different ways at looking things, can have a complete control of rigid thinking, can use a chance to encourage other ideas. Lateral thinking can also be applied in human problem solving. Lateral thinking can be used in the management development. This lateral thinking can be greatly used in schools where in de Bono had also done his study(. Cu rtin, 2004)Lateral thinking is also perfect for: Groups in need of new thinking like companies with an â€Å"innovation† initiative in need of tools that actually work; Professionals in the new idea development business — R&D, PD, marketing, advertising; Executives feeling the heat, same old, same old just isn't working anymore; Teams frustrated with old predicable ideas that keep surfacing in their creative thinking meetings, Scientists and engineers who need systematic tools to break open their thinking; Proactive people that want to strengthen their Innovation Instinct— their ability to generate, build on and implement valuable new ideas. Human resource / Organization development professionals needing tools to facilitate ideation meetings; (de Bono Thinking Systems, 2006)Lateral thinking will also help individuals to develop skills to: Increase productive idea output; Design the future; Find fresh new solutions to intractable problems; Escape the constraints of routine thinking; Appreciate the diversity of thinking among team members; Plan and lead innovation meetings that deliver powerful results; Secure company’s leadership edge; Find new areas of opportunity. (de Bono, 2004)Hence, Lateral thinking is an alternative way to solve problem in a different approach. It could also greatly help in strengthening your business with fresh new thinking bringing innovative solutions to life. Lateral Thinking provides a flexible framework with systematic creativity tools so that you can.Referencesde Bono, E. (1994) Parallel Thinking. London: Viking.de Bono, E. (1994b) The Teaching of Thinking: Why and How? In J.Edwards (ed.) Thinking: International Interdisciplinary Perspectives. Melbourne: Hawker Brownlow, 45-55.de Bono, E. (2004) â€Å"Parallel Thinking: the Six Hat Methods†. Retrieved from: http://www.thinkingmanagers.com/management/parallel-thinking.phpWikipedia, the Free Encyclopedia (2006) â€Å"Lateral Thinking† Retriev ed 12 October from: http://en.wikipedia.org/wiki/Lateral_thinkingde Bono, E. (2005) Parallel Thinking and Lateral Thinking. The De Bono Library.   Retrieved October 2006, from: http://www.edwdebono.com/debono/lateral.htmInfinite Innovations. (1997) â€Å"Definition of creative, creative thinking, parallel and brainstorming†. Retrieved from: http://www.brainstorming.co.uk/tutorials/definitions.htmlCurtin, L. (2004) â€Å"Lateral Thinking Systematic Creativity Tools†. Retrieved from: http://www.lyndacurtin.com/programs/lateral_thinking/lateral_thinking_index.aspde Bono, E. (1997a) â€Å"Effective Thinking: a General Course†. Retrieved from http://www.edwdebono.com/course/index.htmde Bono, E. (1997b) â€Å"Lateral Thinking: TIP Theories, Psychological†. Retrieved from: http://tip.psychology.org/debono.htmlHellers, M. (2006). â€Å"Serious Creativity†. Retrieved from http://www.sixhats.com.htmlde Bono, E. (1995) â€Å"Idea Focus†. Retrieved fr om http://www.ideafocus.com/products/serious/_serious.htmlde Bono, E, 2004, â€Å"De Bono Consulting: A Division of Resources Unlimited†. Retrieved from: http://www.debonoconsulting.com/Lateral_Thinking.aspDavis, A. (2005) â€Å"Timothy Mcsweeney’s: Developing Your Lateral Thinking Skills†. http://www.mcsweeneys.net/2004/12/1stallard.htmlde Bono, E. (2006) â€Å"Practical, Radical and Innovative Thinking Systems†. http://www.debonothinkingsystems.com/home.htmHarleys, C. (2004) â€Å"Creative Tools: A Creative Process, Mind Tools, Essential Skills for an Excellent Career†. Retrieved from: http://www.mindtools.com/pages/article/newCT_00.htmde Bono Thinking Systems. (2002) de Bono for Business. Retrieved from† http://www.debonoforbusiness.com/asp/lateral_thinking.asp

Formal Outline Template

GUIDE TO FORMAL OUTLINING I. The outline should be in sentence form. A. That means that each section of the outline must be a complete sentence B. Each part may only have one sentence in it. II. Each Roman numeral should be a main section of the speech. A. Capital letters are main points of the thesis. 1. Numbers are sub-points under the capital letters. 2. Little letters are sub-points under the numbers. B. Sub-points need to correspond with the idea it is under. 1. This means that capital letters refer to the idea in roman numerals. 2. This means that numbers refer to the idea in the capital letter.III. All sub-points should be indented the same. A. This means that all of the capital letters are indented the same. B. All numbers are indented the same. IV. No sub-point stands alone. A. Every A must have a B. B. Every 1 must have a 2. C. You don’t need to have a C or a 3, but you can. D. There are no exceptions to this rule. Your speech outline should look something like the o ne in the sample. Your outline will also include the full sentence details of your speech, including source citations. The number of sub-points will differ in each speech and for each main idea. FORMAL SENTENCE OUTLINE FORMATStudent’s Name: Date: Topic: General Purpose: Specific Purpose: Key statement that describes the topic of your speech To inform OR To persuade Your specific purpose identifies the information you want to communicate (in an informative speech) or the attitude or behavior you want to change (in a persuasive speech). The central idea of your speech (should predict, control and obligate). Thesis: I. Introduction A. Attention Getter: Something that grabs the attention of the audience. Examples of this: startling statistics, stories, rhetorical questions, quotations, scenarios, etc. This point should be more than one entence long. Why should the audience listen to your speech, make it personal to each of them. Exact same statement as above. B. Reason to Listen: C. D. Thesis Statement: Credibility Statement: 1. 2. What personally connects you to this topic? What type of research have you done to establish credibility? E. Preview of Main Points: 1. 2. 3. First, I will describe †¦ Second, I will examine †¦ Third, I will discuss†¦ II. Restate thesis, exact statement as above. A. Statement of the first main point; you should not use a source in this sentence. 1. Idea of development or support for the first main point a.Support material (ex: statistics, quotation, etc. – cite source) b. Support material (ex: statistics, quotation, etc. – cite source) 2. More development or support a. b. Support material (ex: statistics, quotation, etc. – cite source) Support material (ex: statistics, quotation, etc. – cite source) 3. Transition: More development if needed (Required) Statement of movement that looks back (internal summary) and looks forward (preview). Statement of second main point. Do not use a source in this statement. 1. Idea of development or support for the first main point a. b. . Support material (ex: statistics, quotation, etc. – cite source) Support material (ex: statistics, quotation, etc. – cite source) B. More development or support a. b. Support material (ex: statistics, quotation, etc. – cite source) Support material (ex: statistics, quotation, etc. – cite source) 3. Transition: More development if needed (Required) Statement of movement that looks back (internal summary) and looks forward (preview). Statement of third main point. Do not use a source in this statement. 1. Idea of development or support for the first main point a. b. . Support material (ex: statistics, quotation, etc. – cite source) Support material (ex: statistics, quotation, etc. – cite source) C. More development or support a. b. 3. Support material (ex: statistics, quotation, etc. – cite source) Support material (ex: statistics, quotation, etc. â₠¬â€œ cite source) More development if needed III. Conclusion A. Review of Main Points: 1. 2. 3. B. C. Restate your first main point. Restate your second main point. Restate you third main point. Exact same as above. Develop a creative closing that will give the speech a sense of ending.This point may be more than one sentence. You should refer back to your AttentionGetter. Restate Thesis: Closure: References APA format; all references need to be sited in APA format. Electronic sources must be . edu, . gov, or . org in order to be acceptable. Be sure to make sure that the references are in Alphabetical order. Double-Spaced; all references should be double-spaced and indented. Five source minimum: You must have at least five sources cited in your outline and listed on your reference page. Make sure to provide all necessary information in the references.

Cause-Effect Essay(Analyze the impact of the internet on political Essay

Cause-Effect (Analyze the impact of the internet on political campaigns and elections) - Essay Example The internet has become one of the most popular sources for campaigning during elections and the most popular communication channel. Most of the political parties take the help of the mainstream social networking websites like Face book, twitter as well as MySpace to connect to the people and convert them. Electoral candidates gather their supporters from the internet. The candidates often share information and ask for feedback through emails (Kluver, 97). This enables them to come in touch with their supporters instantaneously. In the past elections instances have been there where president Obama has communicated to his supporters through personalised emails. Research has proved that internet had been the level playing field and a major platform for the competition between Barack Obama and Mitt Romney before the last Presidential Elections and both of the candidates had spent more than a billion dollar on this. Digital Advertising had been a growing area where even the political par ties are investing into. The parties also mimicked the popular social networking sites like Facebook, Amazon, Twitter and YouTube and have been successful in getting leads for any kind of fundraising programme or acquiring the votes of the supporters and converting the non supporters. These networking sites enable the parties to target each community and spread messages to specific demographic segments and thereby addressing specific needs. The funds that the parties require for successfully carrying out of the operations can be collected from the followers of these networking sites and also enables people to feel connected to the person whom they want to vote as would be President. But such funds are only donated by a certain section of the society who is wealthy and educated (Chadwick and Howard, 145). Thus people have more involvement in the election process. Survey revealed that 80% of the information flow related to the elections took place in the internet. Like the other daily chores that the common people undertake on the internet like banking and shopping, the information exchange is also taking place on the internet. Campaign on the internet also turns out to be a cost effective one because the costs of advertising on the television and buying air time is costly (Bimber and Davis, 8). The main motive for the political party is to stand out from its rivals. However, how much of this campaign is actually being converted into positive votes is questionable. The information that is circulated through the net is short lived and the supporters cannot retain such information for a longer period of time. However, the people have been constantly been addressed by the candidate through this path. Much of the section of the population is not computer literate. They do not know the use of computers. For them this kind of force of publicity is not acceptable as it does not reach them. The parties have to devise different strategies in that case. The social media c hannel reaches mostly the young people but studies prove that young people do not actually cast their votes on the day of the elections. However, it has made politics more transparent in front of the common man. Due to the use of the internet the political parties and the candidates can save a lot of time because they can reach out to a greater number of audiences in a shorter span of time. A lot of talented people who are good at strategising are getting engaged in the process and

Engaging First-Year Writers through Visual Media Research Paper

Engaging First-Year Writers through Visual Media - Research Paper Example Film can be utilized in class as an alternative source for delivering course material. Goldfarb notes that Since 1980’s films have been considered and favored as teaching methods for Open universities and distant learning a. Also the wealth of situations, voices, accents, themes and presentation techniques of a film cannot be portrayed by any teacher, as mentioned by Hill. More specifically with regard to perpetuate connection of films and academic writing, research carried by Kasper illustrates how screening can accentuate the writing skills. During her study she made students visualize the course material from 3 different courses- Linguistic, environmental science and anthropology. Students were subjected to Secret of the wild Child (a documentary based on child deprived of linguistic exposure); Savage Earth: The Restless Planet (Documentary about Earthquakes) and inherit the wind (Film about the scopes of Monkey Trial). By watching films, students are facilitated in learnin g graphical illustration of relevant material.

Book Report on Guerrilla Marketing Essay Example | Topics and Well Written Essays - 1500 words

Book Report on Guerrilla Marketing - Essay Example Levinson (2007) brings to light the view that he was motivated to write this work after having being disappointed by the fact that he could find the right pieces of work to conduct his research. After purchasing numerous books, and still not having enough content, is the story behind the work of Levinson. In his work, he indicates that it is mandatory that the entrepreneurs come up with measures of identifying opportunities in the market, and finding out the best approaches to apply to fill in the gaps. It is from his work that Levinson (2007) hopes to come up with a chain of resources that would be beneficial to prospective businessmen. In fact, he indicates that his drive for the work on ‘Guerilla Marketing’ was driven by the fact that people with the little amounts of money had dreams of owning large businesses at all odds, and indeed turned out successful. This essay shall attempt to review Levinson’s (2007) work on ‘Guerrilla Marketing’, picking out the major points that validate this book as a must for all entrepreneurs. According to Levinson (2007), the basics of marketing include the relationship the company has, with its outside contacts. Analysts and researchers in the field of business have continually argued that the customers cannot, even at one point be alienated from the success of any form of business. Customers, in short, are the main beneficiaries of the businesses, and must always be put into perspective, while planning the businesses. Marketing, in the case of Levinson’s (2007) ‘Guerilla Marketing’ work, advocates for marketing as the major ingredient towards determining if the business will thrive or not. This is for the reason that marketing will either leave an excellent or a ghastly notion on the clients. A good impression will, without human intervention attract more clientele to the industry and vice versa. In the first chapter, ‘guerilla marketing’ has been defined as t he novel method of marketing goods and products as compared to the long-established methods. Levinson (2007) argues that conventional forms of marketing are far much too pricey as they oblige the entrepreneurs to expend a lot of money to sustain their brands. In the case of ‘guerilla marketing’, the case is dissimilar as the entrepreneurs will only be required to devote time and energy to plan the kind of marketing strategies that will lead to a triumphant dealing. This, according to Levinson is the only best way that the company can sustain their brand. Of essence, this can be described as information being the key tool to a flourishing business. Levinson (2007) clearly brings out the foundations of operation of a successful company. This, according to him, refers to aspects such as dedication that allows entrepreneurs remain unswerving in their businesses. With this, he gives a case in point of a man who was consistent in his advertising promotion on Marlboro, yet the brand was visualized as more of feminine than masculine (Levinson, 2007). With a lot of devotion on the advertiser’s side, the brand was able to survive in the market, and is one of the best suppliers of cigarettes in the globe today. In line to this dispute, it is not correct to dispute that marketing is the key to a successful business, but how unfailing the advertisers are in terms of advertising their

Islamic banking Essay Example | Topics and Well Written Essays - 750 words

Islamic banking - Essay Example The laws governing Islamic banking aim at protecting the interests of the public (El, Tiby 3). This paper will discuss why Islamic banks are becoming popular to the extent that they can extend their services to most parts of the world. The paper will also discuss how Islamic banking can be the solution to the economic problems that emanate from the financial crisis. Over the past few years, Islamic banking has become a popular form of banking; as a result, Islamic banks have expanded their activities to most parts of the world. A crucial factor that has led to the significant spread of Islamic banking is because the banks do not charge interest. Islamic banks oppose the charging of interests on loans since some investments financed by loans may not perform well. Islamic banking tends to prohibit only the forms of finance where there are interests charged. As a result, the relationship between borrowers and banks is guided by the risks and returns that the two entities share. Islamic banking holds that since profit is not guaranteed, there is no need to charge interests. This notion has led to the spread of the ideals of Islamic banking in most parts of the world (Aziz & Gintzburger 270). It is worth noting that another factor that has contributed to the expansion of Islamic banking is the use of lease-based transactions, commonly referred as Ijarah. This form of transaction in Islamic banking is becoming popular, especially in the United States financial market. Ijarah refers to a form of leasing whereby there is the acquisition of the asset by the bank, after which the bank leases the customer the asset. This means that the customer will finally be the owner of the asset, either through the purchase of the asset at an agreed price or through leasing the asset (Aziz & Gintzburger 271). The spread of Islamic banking also emanates from the Murabaha service offered by the bank. This can be regarded as the most popular form of Islamic financing.

Working with and leading people Essay Example | Topics and Well Written Essays - 1000 words

Working with and leading people - Essay Example The individual abilities of the members are also reinforced as a result of working as a group. This is because the workers share their experiences and help each other out in times of difficulties. The members working in the team are also able to learn and apply their new skills in the course of executing their tasks. Working as a team enables the establishment of participation and the involvement of all team members in Tesco’s activities. This ensures that their assigned activities are performed efficiently and quickly. The decisions that are made as a result of a team working together as a group are better than the decisions an individual makes. The team members incorporate their collective experiences and skills before making a decision (Mathis and Jackson, 2010). The use of brainstorming enables the generation of ideas from different members of the group and helps in bringing in new ideas to the group. Working as a team also enables the members to feel confident of the results they present to the organization,. This is because the ideas generated by the members undergo the necessary criticisms and cross examinations before the decisions are reached. The active participation of the team members enables the generation of many diverse concepts within the organization. They eventually assi st the organization in achieving their set objectives. The concepts and ideas that the team members suggest are considered as alternatives when similar problems occur (Drucker and Ferdinar, 2006). Decision making in a team is slow though most of the times the most appropriate decisions are reached. The harmonious working of the members of a team leads to an increase in their satisfaction. The speed of accomplishing events in the organization is also increased because of the collaboration between the team members. A worker requires to have a problem solving ability as this enables him to handle complex situations. These assists the workers in meeting their

Bringing Minds To Gods Research Paper Example | Topics and Well Written Essays - 2000 words

Bringing Minds To Gods - Research Paper Example One famous symbolic anthropologist by the name of Clifford Geertz even defined religion as â€Å"(1) a system of symbols which acts to (2) establish powerful, pervasive, and long-lasting moods and motivations in men by (3) formulating conceptions of a general order of existence and (4) clothing these conceptions with such an aura of factuality that (5) the moods and motivations seem uniquely realistic" (Geertz 1966). An integral part in the system of religion is the belief of sin. In a general and more modern sense, sin is anything that violates a certain moral standard or code of conduct. Anything that is offensive, an avoidance of good, or the act of doing wrong is considered a â€Å"sin†. In Christianity, sin does not only mean those actions that are tangible but it also encompasses feelings of enmity, internal thoughts, and other motivations that lead to ill-doing, shame, or immorality. In a religious perspective, when a person commits sins, his relationship with his supe rnatural being is tainted and he therefore must do sacrificial acts to restore the connection. This act of achieving a certain kind of spiritual cleansing, more commonly understood as the concepts of expiation and/or the atonement of sins have since become so interrelated hand in hand with the notion of sin. And religions have, to a good extent, institutionalized certain practices and ritual to ensure the reparation of relationship between man and his deity. Among the many established religions in the world today, this paper shall focus on the discussion of the similarities and differences of the concept of atonement and/or spiritual cleansing between Hinduism and Confucianism. To define, atonement is the process by which a person removes obstacles to his reconciliation with God. In doing so, he â€Å"re-establishes or strengthens his relations to the holy divine†. As the etymology of the name suggests, to â€Å"atone† is to â€Å"set at one† (Encyclopedia Brita nnica, May 2011). Hinduism Present among the various religions in the world in the act of expiation of sins are prayer, repentance, fasting, and offering (animal or crops). In Hinduism, the ultimate goal in life is to be in union with the Brahman, the supreme and absolute universal Spirit of the universe. To be one with the Brahman, one must constantly purify himself through the practice of atonement or â€Å"Prayaschitta†, a ritual performed to eliminate the effects of bad deeds. In the Hindu lexicon, â€Å"praya† means austerity and â€Å"chitta† means a firm resolution. Hence, to do prayschitta, one must undergo or render a certain form of sacrifice to cleanse him from the wrong doings he has committed. This includes extreme fasting which could last as long as a month, chanting of Mantras, or giving away of gifts or going away on a pilgrimage. History has it that the act of prayaschitta among Hindus is not necessarily according to the Brahmans but it goes bac k to law books of Sanskrit. The severity of the penance is said to be dependent upon the weight of the violation committed. In some documented acts of atonement, there were instances of drinking boiled liquor for the sin committed in drinking too much of the same intoxicating beverage. This kind of ritual is considered to be light as the sin committed is not severe. Severe ones are those that include murder,

The effect of not having personal gadgets in i.t student Essay Example for Free

The effect of not having personal gadgets in i.t student Essay CHAPTER 1 INTRODUCTION In the year where electronic gadgets are not yet invented like computers, students are not yet engage in activities using technologies. Students rely on books and visit library facilities to study, read their notes and review their school lessons. During those years, despite the lack of computers and hi-tech gadgets students still achieve high and good grades and the students are still focused on their studies. They strive hard just to attain higher and better grades in their education. Students who can’t afford to buy a computer just go to the library to read book, to do research work, and to make their school project. During the years when computers were first invented, people make use of computers to help them accomplish their works and to make their tasks lighter and fester.Now in the present time, the age of modern technology, where almost everything is hi-tech, computer technologies has greatly improve and become better. These days, the computer technology industry is rapidly growing and changing. Along with that growth and change of computer are the people who almost instantly adapt to changes. The reason why computer technologies are invented is to help make people’s life easier and to improve their way of life, especially the students. Modern computer technologies make studying easier and fun to the students. Computers help students in their studies for students can start. 1.1.SUBJECT Several studies and researches have suggested about the various harmful effects gadgets have on human health. Electronic gadgets are now very essential to our society today. We need electronic gadgets to do business, to have some recreation and help us get through our daily lives. 1.2.PURPOSE This study aims to know how gadgets affect the studies of the IT students of MPC. This study will show the researcher how the gadgets can affects the studies of the IT students of MPC as said on the title. As we know, gadgets are now part of our daily basis. 1.3.SCOPE AND LIMITATION This research was conducted an Montessori Professional College, 1812c.m Recto Avenue Corner, Coromina Street Quezon Boulevard, Quiapo Manila, Approximate 2kms. From Manila City Hall, it is  located right side of the Isetan Recto, In front of Cartimar Center. 3rd floor along University Belt.This action research may not be copied or reproduced in books, pamphlets, outlines or note without any permission of the author. 1.4.PLAN OF DEVELOPMENT The researcher went to the library to gathered the data to the books, magazine and even at the internet, it happened at the MPC library, then pass it to the professor ad check it, then give it back again to the researcher to rewrite the correction. The researcher went to the bookbinding store, bookbind it after that gave it back to the professor for recheck if ever there will be any correction after that gave it back again to the researcher and ready for the defense.

Rights and Duties in a Letter of Credit Transaction

Rights and Duties in a Letter of Credit Transaction Introduction The letter of credit is the most commonly used method of payment for goods in international trade. This thesis highlights the imbalance of the rights and duties of the parties in a letter of credit transaction by emphasising deficiencies in the letters of credit system. In addition, on those areas where there is lack of justice and equity and which make the system of the letters of credit vulnerable for fraudulent activities. This thesis is structured in five chapters. First chapter after briefly discussing the structure of the letter of credit system, such as parties to the letter of credit transaction, kinds of letters of credit, step by step procedure of the transaction, different type of the documents used and the common defects in those documents, it also explains about the division of the risk under such a transaction and how the applicant’s risk has increased under UCP and very often the buyer is paying for the goods he had not contracted for. Second chapter after brief discussion of the drafting and interpretation of the UCP, explains about the reluctance of the courts to intervene in order to balance the rights and duties of the parties in a letter of credit transaction, status of the UCP, scope of the banks duties and in addition the disclaimer clauses under UCP. Chapter three explores the autonomy of the letters of credit, the doctrine of strict compliance and the ways in which the courts deal with documentary compliance. It further considers that overprotection of the â€Å"independence principle†, and the lack of â€Å"reasonable care† on the part of banks provides opportunities of fraud to the sellers to obtain payment without actually performing their duties to banks and buyers. Chapter four explains â€Å"fraud exception† to the autonomy principle in detail, the position of the fraud exception in England and the history of the English cases relating to the fraud. In addition it also examines the reasons for such an enormous increase in the number of cases relating to fraud. Finally, chapter five considers some of those methods, which can be used to avoid such an increase in fraud cases and also provides few suggestions to balance the rights and duties amongst all the parties to the letter of credit transaction. Chapter 1 Structure of a Letter of Credit Transaction Commercial letters of credit have been used for the centuries as a most common method of payment, in international trade. Letters of credit used in international transactions are governed by the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits (UCP). A commercial letter of credit is a contractual agreement between a bank (issuing bank), on behalf of one of its customers (buyer), authorizing another bank (advising or confirming bank), to make payment to the beneficiary (seller). The issuing bank, on the application of its customer (buyer), opens the letter of credit, and makes a commitment with the buyer to honour the credit, if the documents presented by the beneficiary are conforming to the terms and conditions of the credit. Thus, the issuing replaces the customer to make payment to the seller. Elements of a Letter of Credit An undertaking given by issuing bank to make payment Issuing bank gives undertaking on behalf of a applicant To pay a given amount of money to the seller On presentation of required documents under the letter of credit Within a specified time as provided by the letter of credit Documents must be in compliance to the terms and conditions of the letter of credit Documents must be presented at a specified place provided by the letter of credit Beneficiary Beneficiary is normally the provider of the goods or services and is entitled to payment as long as he can provide the conforming documents required by the letter of credit. The letter of credit is a distinct and separate transaction from the underlying contract (contract between seller and buyer). All parties deal in documents and not in goods. The issuing bank is not liable for the performance of the underlying contract between the buyer and seller. The issuing banks obligation to the buyer-applicant is to examine all documents to insure that they are in compliance with the terms and conditions of the credit. To get the payment it is for the beneficiary to provide all the required documents. If the seller-beneficiary conforms to the letter of credit, the seller must be paid by the bank. Issuing Bank Letters of credit only concerns with the documents, not with the goods, therefore the duty of issuing bank to pay to the beneficiary and than to be reimbursed from its customer will only be completed upon the completion of the terms and conditions of the letter of credit. Under the provisions of the Uniform Customs and Practice for Documentary Credits, the bank is entitled to have a reasonable time after receipt of the documents from the beneficiary, to examine the documents and then to make the payment. The issuing bank provides a guarantee to the seller that if the documents presented by the beneficiary are in compliance with the terms and conditions of the credit, then the bank will make the payment to the seller. Generally the documents presented include a commercial invoice, bill of lading or airway bill and an insurance document etc. Advising Bank An advising bank is usually a foreign correspondent bank of the issuing bank which advises the seller-beneficiary. Generally, the beneficiary wants to use a local bank to insure that the letter of credit is valid. In addition, the advising bank is responsible for sending the documents to the issuing bank. The advising bank has no other obligation under the letter of credit. Therefore, if the issuing bank does not pay the beneficiary, the advising bank is not obligated to pay. Confirming Bank At the request of the issuing bank, the correspondent bank may confirm the letter of credit for the seller-beneficiary and obligates itself to insure payment under the letter of credit. The confirming bank is usually the advising bank. There are two main types of Letters of credit: (1) Revocable (2) Irrevocable Revocable Letter of Credit Revocable letter of credit is not a commonly used type of the letters of credit. This type of letter of credit can be revoked by the issuing bank at any time, without notification to the beneficiary, for any reason. Such type of letter of credit can not be confirmed by the correspondent bank and the bank will act as an advising bank only. A revocable letter of credit can not be revoked after the presentation of the documents, if the documents are conforming to the terms and conditions of the letter of credit and the payment has been made. Irrevocable Letter of Credit Use of irrevocable letters of credit is very common in international trade. Irrevocable letter of credit can not be revoked or changed without the consent of the beneficiary. Issuing bank will make the payment to the seller, if the seller presents the documents complying with the terms of the credit, as agreed between seller and buyer. Such a letter of credit can only be changed with the permission of both buyer and seller. If it is not clear from the letter of credit that whether it is revocable or irrevocable, it automatically considers as irrevocable. Irrevocable letters of credit are of two kinds: Unconfirmed credit In case of unconfirmed letter of credit, advising bank does not confirm the credit to the seller and the issuing bank is the only party responsible for payment to the beneficiary. Advising bank will only pay to the seller after getting payment from the issuing bank and there is no risk for the advising bank. Confirmed credit In this type of credit, advising bank confirms credit to the seller. When the advising bank confirms that the documents presented are conforming to the terms of the credit, it will make the payment to the seller, and after that advising bank will contact with the issuing bank to get the payment. This type of letter of credit is commonly used, when the seller is unfamiliar with the issuing bank. Such a type of letter of credit is quite expensive because the banks have some liability. Step-by-step process In international trade as the buyer and seller are in different countries so when the buyer and the seller of the goods agree to conduct business, than because of the gap of time between delivery of goods and the payment, usually the seller wants a letter of credit as a guarantee of payment from the buyer. Than the buyer makes a request to his bank called the issuing to open a credit in the favour of the seller. at the request of the buyer, issuing bank issues a letter of credit in favour of the seller and forwards it to the corresponding bank called the advising or conforming bank., which is usually located in the seller’s country. Advising bank than either confirms the credit or not, depending upon the type of credit, and forward it to the seller. Seller than ships the goods and collects the documents required in order to meet the requirements of the letter of credit and finally to get the payment in time. Seller presents the required documents to the advising or confirming bank in order to get the payment in time. Advising or confirming bank examines the documents presented by the seller to check that whether they are conforming to the terms and conditions of the letter of credit. If the documents are in compliance, advising or confirming bank, in case of confirmed letter of credit, will make payment to the seller and will be reimbursed from the issuing bank and in case of unconfirmed letter of credit, advising or confirming bank will forward the documents to the issuing bank. Than the Issuing bank will, after examine of the documents, debit the buyers account if the documents are in compliance to the terms of the letter of credit. In the end, Issuing bank forwards the documents to the buyer. Most commonly used documents in a letter of credit transaction include: Commercial Invoice This includes description of the goods, their price, FOB origin, and name and address of the buyer and the seller. The buyer and seller information must be in compliance with the description provided in the letter of credit. Bill of Lading It is a document which shows the receipt of goods for shipment by a freight carrier. It is an evidence of the control of the goods and also acts as an evidence of the carriers obligation to transport the goods to their proper destination. Warranty of Title A warranty given by a seller to a buyer of goods that states that the title being conveyed is good. It is generally issued to the purchaser. Letter of Indemnity It is a letter specifically indemnifies the purchaser against a certain stated circumstance. Indemnification is generally used to guarantee that shipping documents will be provided in good order when available. Common Defects in the documents presented A discrepancy is some defect in the documents presented by the seller, which show their non-compliance with the terms of the letter of credit. Issuing bank can not change the terms and conditions of the letter of credit with out t he permission of the buyer. Therefore to avoid any delay in getting payment. Beneficiary should be careful in preparing the required documents. Common defects in the documents presented by the seller include: If the description of the goods is not consistent. There is some error in the insurance documents. If the draft amount is not equal to invoice amount. Loading and destination ports are not same as provided by the letter of credit. Merchandise description is not same as in the credit. If any of the documents required by the credit is not presented. Documents are generally inconsistent such as quality, etc. If the names of the documents required are not correct, as mentioned in the credit. Invoice is not signed as provided in the letter of credit. If prior to the presentation of the draft, Letter of Credit has expired. If the date mention in the bill of lading is different from the date stated in the credit. If there are some changes in the invoice which are not authorized by the letter of credit. In international sales, as the seller and the buyer are in different countries, there is a common problem of payment due to the difference of time between dispatch and delivery. Obviously, seller would like to receive payment for the goods when delivering them to the carrier and the buyer would prefer to delay the payment of the price until receipt of the goods. Therefore, a letter of credit solves this problem between the seller and the buyer. Generally, there are three separate transactions in a letter of credit transaction. The first is between a seller and a buyer, called an underlying transaction, by which the seller provides contracted goods to the buyer. The second transaction is between the buyer-applicant and the bank (issuer of the letter of credit), in which the bank issues a letter of credit to the seller-beneficiary. Finally, the letter of credit itself creates a relationship between the issuer and the beneficiary, in which, the issuer makes payment for goods upon the beneficiary’s presentation of the required documents, in accordance with the terms and conditions of the letter of credit as agreed between seller and buyer. The bank’s performance of payment is conditional on the delivery of conforming documents by the beneficiary. The banks are called issuers and are usually the applicant’s bank. Normally the issuing bank opens a letter of credit in its own name and requests its correspondent bank to notify the seller about the letter of credit. Sometimes, the issuing bank asks the correspondent bank not only to inform the seller of the issuing bank’s undertaking but also to add a confirmation. In this case, the credit is known as a confirmed credit and the correspondent bank as a confirming bank. The payment obligation of the issuing bank depends upon the beneficiary’s presentation of complying documents to the confirming bank or to any other nominated bank, in accordance with the terms and conditions of the credit. Under general practice, presenting â€Å"complying documents† means that they comply with the conditions of the credit â€Å"on their face†. From banking point of view, compliance â€Å"on their face† of the presented documents is sufficient. The â€Å"independence principle† (which will be discussed later) is the fundamental principle of the letter of credit system, which prohibits banks from looking beyond facial compliance of the documents, and therefore exclude whether or not there is actual performance by the seller-beneficiary. In fact, letters of credit system has emphasised the independence principle to such an extent that banks are ignoring the performance of the underlying contract very confidently. As a result, all the risk is on the honest buyers, who are sometime paying for goods that they had not contracted for. Importance of the research The primary purpose of the letter of credit system is to facilitate international trade, rather than to provide an opportunity to the banks to make profit. As the fraud is very common in these days, but UCP is not designed to prevent fraud. The number of frauds relating to the letters of credit has increased over the years. Buyers are particularly vulnerable to such practices under the letter of credit system. This situation shows that there is some ambiguity in the letter of credit system and a lack of balance between the rights and duties of the parties to a letter of credit transaction, which is being exploited very easily by fraudsters. Division of risk under a Letter of Credit Transaction As we have discussed above, a letter of credit transaction consists of three linked but independent contracts. The first step is that the buyer makes a contract with the seller for the sale of goods, called the underlying contract. Subsequently the buyer signs an application form requesting the bank to open a credit, which is an arrangement between the buyer and the bank. The third step is that the issuing bank informs the seller, who is the beneficiary of the letter of credit, of the credit and promises to pay against the stipulated documents provided the terms and conditions of the credit are met. The letter of credit allocates risk between the applicant and the beneficiary. By postulating a letter of credit, the beneficiary may greatly reduce the risk of not being paid and ultimately allowing the beneficiary of the letter to reallocate the risk of non-payment for delivered goods which do not conform to the underlying sale contract. Generally, banks are reluctant to dishonour a credit, since to do so may damage the bank’s reputation as a credit issuer. The cost of honour, however, falls on the honest applicant, not the bank. â€Å"If the beneficiary has breached the underlying transaction, payment under the credit to him will occasion loss, but that loss will not be the bank’s; it will be the applicant’s.† Increase in the applicant’s risk and decrease in the bank’s risk under UCP UCP is the governing law of the letters of credit, therefore there should be a balance regarding the rights and duties of the parties, but UCP contains rules that reduce bank risk. There is no provision asking for judicial intervention to compensate letter of credit parties in case of bank’s negligence. The provisions in favour of banks fall into two categories. The first provides sweeping immunity from liabilities that national legal systems may impose. Example of such a disclaimer is Article 15. Under Article 15, banks assume no liability for the genuineness, falsification or legal effect of any documents and therefore the issuer is immune from the liability for paying against forged documents, which on their face appear regular. Therefore, the payment by the issuing bank does not show that the buyer has received the goods, which he had contracted for. The security, which the beneficiary is getting under the letter of credit system is not the same with the security of the buyer. The second category of pro-bank provisions contains rules that set precise boundaries on what the banks must do, which reduces uncertainty about bank responsibility and provides clear guidance to bank employees. For example, the customer cannot stipulate non-documentary conditions of payment, and time limits on examination of documents are fixed rather than open-ended. In case of any loss, the buyer, which is the applicant for a credit, can take action against the seller for breach of contract or fraud, but has no right of action against the bank for bank’s negligence in examining the documents, which can be ineffectual for several reasons, such as insolvency of either the applicant or the beneficiary. Hence the burden of risk on the applicant is more than any party in a letter of credit transaction and in most of the cases, buyers are paying for the goods, they have not contracted for. Chapter 2 UCP and letters of credit Originally UCP has been drafted by the Banking Commission of the ICC, which was comprised of the representatives of the banking community, which shows the dominance of the banks and banking experts. Their dominance in UCP drafting, hints that in drafting UCP, ICC was acting as a private legislature. It looks that the rules contain in the UCP are much beneficial for the banks than any other party, and giving a limited chance to the judiciaries to interfere to protect customers from any careless behaviour of the banks. The authority to interpret the UCP rests in the ICC Commission on Banking Technique and Practice, which can apply these interpretations to solve the problems arising in any case. Because of wide publicity and distribution of commission’s answers, their interpretation can be considered as an official interpretation of the UCP. Commission can enhance, interpreting, and sometimes amend the provisions of the UCP. The banks which deal with the letters of credit, act upon these interpretations and any amendments. As in theory, commission is only answerable to ICC members, therefore the chances of any challenge to such interpretation is very low. Role of courts in balancing the rights and duties of the parties In Discount Records Ltd. v. Barclay Bank Ltd., the judge was reluctant to â€Å"interfere with bankers’ irrevocable credit and not least in the sphere of international banking†. The position is same in many other cases. The apparent reason for the reluctance of the judges to interfere looks that they are afraid from the threats of the banking experts that their decisions would have an unfavourable affect on international trade. The difficulties of the courts to balance the rights and duties of all parties to a letter of credit transaction have increased. In Mannesman Handel AG v. Kaunlaran Shipping Corporation, the Swiss bank argued that the bank was in rejecting the documents by the German company relying on the independence principle and the discrepancies appeared on the documents. The court was asked not to apply the good faith principle otherwise the court â€Å"would be calculated to undermine if not destroy the doctrine of strict compliance and to blur if not extinguish the distinction between transactions concerning goods and transactions concerning documents.† Normally the judicial decisions relating to the legal aspects of documentary credits base on either the express intentions of the parties or established business practice at the time, the parties entered in a contractual relationship. In cases where the UCP provisions are different from business practice, a court will apply the UCP if the UCP is incorporated in the contract of the parties. It shows that courts have assented to the entire documentary credit system being run by the banking industry and eventually abstaining the courts to intervene to balance the legal rights and duties amongst all the parties. Should the UCP have the status of law? Leading scholar Professor Ross Buckley says: â€Å"originally, the UCP was neither designed nor intended to be law. It was prepared as a set of standard terms to be incorporated by reference into letters of credit by those parties who chose to do so.† This has also been confirmed by the UCP in the preface of UCP 500, which states that the UCP is not legislation but a compilation of rules made by bankers for their own industry. Therefore there is a dispute as to whether the UCP is a code of the law, or just customary practices, or some mutually consented regulations relating to letters of credit. However in fact, UCP is the governing law of the letters of credit. The Scope of the Banks Duties Before analysing the wording of the disclaimers used, the scope of the duties undertaken by the banks involved must be identified. Whereas the type of credit and the documentary stipulations therein will usually have been negotiated by the commercial parties and included in their sales contract, the terms and conditions under which a bank undertakes to open a documentary credit will normally appear in the banks standard application form which the importer will be required to complete. Although the application would normally refer to the UCP, it is important to note that the provisions of the UCP would not automatically apply in English law if not expressly incorporated by the parties to the credit and, even if expressly incorporated, its provisions can be excluded, or modified by the express terms of the credit. The duty to issue an efficacious credit The importers failure to procure the issue of a documentary credit which conforms to the terms of the sales contract may be treated by the exporter as a breach of a condition precedent to his performance and a repudiation of the contract by the importer. Whether the applicant can sue the issuing bank in respect of its culpable failure to issue (or to issue in good time) a conforming and efficacious credit is, however, by no means clear. The duty to issue a conforming credit An initial problem arises where the applicant requires the issue of a confirmed credit, that is, a credit in which a second bank, normally in the beneficiarys country, adds its own independent undertaking, to pay against the stipulated documents, to that of the issuing bank. Is the issuing bank in breach of contract towards the applicant if it is unable to procure the confirmation? The answer must depend upon the issuers conduct on receiving the application from the applicant. The second aspect of the duty to issue a conforming credit raises the question of liability for the acts of other banks involved in the transaction. Clearly, if the issuing bank opens a credit which specifies documentation other than that called for by the applicant, then in the absence of a disclaimer it will be in breach of its contract with the applicant under the doctrine of strict compliance. The position should be the same where the issuing bank unreasonably delays issue of the credit so that the beneficiary incurs loss. A difficulty arises, however, when it is not the issuing bank itself which causes the error or delay in complying with the applicants instructions, but the issuers correspondent bank. The doctrine of privity of contract would appear to prevent contractual liability arising in this context. However, in any event, it appears that there is no reason for holding that, in the absence of a disclaimer; an issuing bank should not be liable for the consequences of errors by its correspondents. Duty to receive and examine documents The doctrine of strict compliance means that issuing banks which pay against non-conforming documents are in breach of their contractual obligations to the applicant. The issuer is not, however, a guarantor of the documents conformity; its duty is discharged by the exercise of reasonable care to ascertain that the documents comply on their face with the terms of the credit. Duty to make payment under the terms of the credit The party with the primary interest in enforcing the banks obligation to pay against conforming documents is the beneficiary although it is clear that this obligation is also owed to the applicant. Furthermore, any variation of the payment terms would be a clear breach of contract. Duties of correspondent banks In so far as the confirming bank gives an undertaking in exactly the same terms as the issuing bank, it clearly owes precisely the same duties to the beneficiary. However, since a confirming bank looks to the issuing bank alone for reimbursement, it may be prima facie unlikely that it owes any duty to the applicant, even where the applicant is paying the confirmation fee. There are, however, some judicial dicta which might support the recognition of such a duty. Bank’s risk under UCP (exemption clauses) Article 15 and 18 (b) of the UCP 500, limits the liability of the banks in a letter of credit transaction and which have almost made it a risk free transaction for the banks. Article 15 says: â€Å"Banks assume no liability to or responsibility for the form, sufficiency, accuracy, genuineness, falsification or legal effect of any document(s) or for the general and/or particular conditions stipulated in the document(s) or superimposed thereon, nor do they assume any liability or responsibility for the description, quantity, weight, quality, condition, packing, delivery, value or existence of the goods represented by any document(s) or for the good-faith or acts and/or omissions, solvency, performance or standing of the consignors, the carriers, the forwarders, the consignee or the insurers of the goods or any other person whomsoever.† Article 18(b) further states: â€Å"Banks assume no liability or responsibility should the instructions they submit not be carried out, even if they have themselves taken the initiative in the choice of such other bank(s).† The UCP 500 places the applicant-buyer in an absurdly vulnerable position through its disclaimer clauses. To some extent there is a lack of duties on the part of the bank to verify the authenticity of the documents. Hence it might not be wrong to say that albeit there is a waste increase in the use of letters of credit, does not signify that the UCP is fairly drafted. Letters of credit and its users It is also very important that whether all the parties to the letter of credit, particularly applicant-buyer are conscious about the presence of these exemptions, e.g. by providing a copy of these exemption clauses of the UCP or by giving a notice of these exemption clauses. It is a rule that to enforce an exemption clause, a reasonable notice should be given to the other party but in practice, buyers are assume to have the notice of the UCP and that they are familiar with the provisions of the UCP. Further, the application for the issuance of a letter of credit and the letter of credit document itself only contain a simple sentence: â€Å"Subject to UCP for Documentary Credits†, without any attachment of the provisions of the UCP or any notice of such exemption clauses. Hence it is debatable that why the courts do not look, while dealing with the cases relating to the letters of credit, that whether a reasonable notice has been given relating to the exemption clauses and do not interfere to balance the rights and duties of the parties to a letter of credit transaction? Chapter 3 Doctrine of strict compliance and independence principle It is a basic rule of the letter of the credit transaction and which is widely recognised that the letters of credit are transactions independent of the underlying contracts on which they are based. According to this principle, the issuer has no concern with the underlying contracts between buyer and seller. Its concern is with documents only, rather than the goods or any type of services. Obviously there are some doubts about this principle, i.e. to what extent this principle should be applied. Which some tome may cause injustice to the applicant under certain circumstances. Independence Principle Generally, letter of credit is a contract between the issuer and the seller of the goods, which is independent of the underlying contract between the seller and the buyer. The independence principle is mentioned in Article 3 and Article 4 of the UCP. Article 3 states: â€Å"Credits, by their nature, are separated transactions from the sales or other contract(s), even if any reference whatsoever to such contract(s) is included in the Credit.† Article 4 further says: â€Å"In credit operations all parties concerned deal with documents and not with goods, services and/or other performances to which the documents may relate.† From the very beginning independence principle governs letter of credit transactions and very clearly states that the credits are completely separate from their underlying transactions and the issuer makes payment depending on the conformity of the documents presented according to the terms and conditions of the credit without considering the performance of the underlying contract by the beneficiary. Rights and Duties in a Letter of Credit Transaction Rights and Duties in a Letter of Credit Transaction Introduction The letter of credit is the most commonly used method of payment for goods in international trade. This thesis highlights the imbalance of the rights and duties of the parties in a letter of credit transaction by emphasising deficiencies in the letters of credit system. In addition, on those areas where there is lack of justice and equity and which make the system of the letters of credit vulnerable for fraudulent activities. This thesis is structured in five chapters. First chapter after briefly discussing the structure of the letter of credit system, such as parties to the letter of credit transaction, kinds of letters of credit, step by step procedure of the transaction, different type of the documents used and the common defects in those documents, it also explains about the division of the risk under such a transaction and how the applicant’s risk has increased under UCP and very often the buyer is paying for the goods he had not contracted for. Second chapter after brief discussion of the drafting and interpretation of the UCP, explains about the reluctance of the courts to intervene in order to balance the rights and duties of the parties in a letter of credit transaction, status of the UCP, scope of the banks duties and in addition the disclaimer clauses under UCP. Chapter three explores the autonomy of the letters of credit, the doctrine of strict compliance and the ways in which the courts deal with documentary compliance. It further considers that overprotection of the â€Å"independence principle†, and the lack of â€Å"reasonable care† on the part of banks provides opportunities of fraud to the sellers to obtain payment without actually performing their duties to banks and buyers. Chapter four explains â€Å"fraud exception† to the autonomy principle in detail, the position of the fraud exception in England and the history of the English cases relating to the fraud. In addition it also examines the reasons for such an enormous increase in the number of cases relating to fraud. Finally, chapter five considers some of those methods, which can be used to avoid such an increase in fraud cases and also provides few suggestions to balance the rights and duties amongst all the parties to the letter of credit transaction. Chapter 1 Structure of a Letter of Credit Transaction Commercial letters of credit have been used for the centuries as a most common method of payment, in international trade. Letters of credit used in international transactions are governed by the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits (UCP). A commercial letter of credit is a contractual agreement between a bank (issuing bank), on behalf of one of its customers (buyer), authorizing another bank (advising or confirming bank), to make payment to the beneficiary (seller). The issuing bank, on the application of its customer (buyer), opens the letter of credit, and makes a commitment with the buyer to honour the credit, if the documents presented by the beneficiary are conforming to the terms and conditions of the credit. Thus, the issuing replaces the customer to make payment to the seller. Elements of a Letter of Credit An undertaking given by issuing bank to make payment Issuing bank gives undertaking on behalf of a applicant To pay a given amount of money to the seller On presentation of required documents under the letter of credit Within a specified time as provided by the letter of credit Documents must be in compliance to the terms and conditions of the letter of credit Documents must be presented at a specified place provided by the letter of credit Beneficiary Beneficiary is normally the provider of the goods or services and is entitled to payment as long as he can provide the conforming documents required by the letter of credit. The letter of credit is a distinct and separate transaction from the underlying contract (contract between seller and buyer). All parties deal in documents and not in goods. The issuing bank is not liable for the performance of the underlying contract between the buyer and seller. The issuing banks obligation to the buyer-applicant is to examine all documents to insure that they are in compliance with the terms and conditions of the credit. To get the payment it is for the beneficiary to provide all the required documents. If the seller-beneficiary conforms to the letter of credit, the seller must be paid by the bank. Issuing Bank Letters of credit only concerns with the documents, not with the goods, therefore the duty of issuing bank to pay to the beneficiary and than to be reimbursed from its customer will only be completed upon the completion of the terms and conditions of the letter of credit. Under the provisions of the Uniform Customs and Practice for Documentary Credits, the bank is entitled to have a reasonable time after receipt of the documents from the beneficiary, to examine the documents and then to make the payment. The issuing bank provides a guarantee to the seller that if the documents presented by the beneficiary are in compliance with the terms and conditions of the credit, then the bank will make the payment to the seller. Generally the documents presented include a commercial invoice, bill of lading or airway bill and an insurance document etc. Advising Bank An advising bank is usually a foreign correspondent bank of the issuing bank which advises the seller-beneficiary. Generally, the beneficiary wants to use a local bank to insure that the letter of credit is valid. In addition, the advising bank is responsible for sending the documents to the issuing bank. The advising bank has no other obligation under the letter of credit. Therefore, if the issuing bank does not pay the beneficiary, the advising bank is not obligated to pay. Confirming Bank At the request of the issuing bank, the correspondent bank may confirm the letter of credit for the seller-beneficiary and obligates itself to insure payment under the letter of credit. The confirming bank is usually the advising bank. There are two main types of Letters of credit: (1) Revocable (2) Irrevocable Revocable Letter of Credit Revocable letter of credit is not a commonly used type of the letters of credit. This type of letter of credit can be revoked by the issuing bank at any time, without notification to the beneficiary, for any reason. Such type of letter of credit can not be confirmed by the correspondent bank and the bank will act as an advising bank only. A revocable letter of credit can not be revoked after the presentation of the documents, if the documents are conforming to the terms and conditions of the letter of credit and the payment has been made. Irrevocable Letter of Credit Use of irrevocable letters of credit is very common in international trade. Irrevocable letter of credit can not be revoked or changed without the consent of the beneficiary. Issuing bank will make the payment to the seller, if the seller presents the documents complying with the terms of the credit, as agreed between seller and buyer. Such a letter of credit can only be changed with the permission of both buyer and seller. If it is not clear from the letter of credit that whether it is revocable or irrevocable, it automatically considers as irrevocable. Irrevocable letters of credit are of two kinds: Unconfirmed credit In case of unconfirmed letter of credit, advising bank does not confirm the credit to the seller and the issuing bank is the only party responsible for payment to the beneficiary. Advising bank will only pay to the seller after getting payment from the issuing bank and there is no risk for the advising bank. Confirmed credit In this type of credit, advising bank confirms credit to the seller. When the advising bank confirms that the documents presented are conforming to the terms of the credit, it will make the payment to the seller, and after that advising bank will contact with the issuing bank to get the payment. This type of letter of credit is commonly used, when the seller is unfamiliar with the issuing bank. Such a type of letter of credit is quite expensive because the banks have some liability. Step-by-step process In international trade as the buyer and seller are in different countries so when the buyer and the seller of the goods agree to conduct business, than because of the gap of time between delivery of goods and the payment, usually the seller wants a letter of credit as a guarantee of payment from the buyer. Than the buyer makes a request to his bank called the issuing to open a credit in the favour of the seller. at the request of the buyer, issuing bank issues a letter of credit in favour of the seller and forwards it to the corresponding bank called the advising or conforming bank., which is usually located in the seller’s country. Advising bank than either confirms the credit or not, depending upon the type of credit, and forward it to the seller. Seller than ships the goods and collects the documents required in order to meet the requirements of the letter of credit and finally to get the payment in time. Seller presents the required documents to the advising or confirming bank in order to get the payment in time. Advising or confirming bank examines the documents presented by the seller to check that whether they are conforming to the terms and conditions of the letter of credit. If the documents are in compliance, advising or confirming bank, in case of confirmed letter of credit, will make payment to the seller and will be reimbursed from the issuing bank and in case of unconfirmed letter of credit, advising or confirming bank will forward the documents to the issuing bank. Than the Issuing bank will, after examine of the documents, debit the buyers account if the documents are in compliance to the terms of the letter of credit. In the end, Issuing bank forwards the documents to the buyer. Most commonly used documents in a letter of credit transaction include: Commercial Invoice This includes description of the goods, their price, FOB origin, and name and address of the buyer and the seller. The buyer and seller information must be in compliance with the description provided in the letter of credit. Bill of Lading It is a document which shows the receipt of goods for shipment by a freight carrier. It is an evidence of the control of the goods and also acts as an evidence of the carriers obligation to transport the goods to their proper destination. Warranty of Title A warranty given by a seller to a buyer of goods that states that the title being conveyed is good. It is generally issued to the purchaser. Letter of Indemnity It is a letter specifically indemnifies the purchaser against a certain stated circumstance. Indemnification is generally used to guarantee that shipping documents will be provided in good order when available. Common Defects in the documents presented A discrepancy is some defect in the documents presented by the seller, which show their non-compliance with the terms of the letter of credit. Issuing bank can not change the terms and conditions of the letter of credit with out t he permission of the buyer. Therefore to avoid any delay in getting payment. Beneficiary should be careful in preparing the required documents. Common defects in the documents presented by the seller include: If the description of the goods is not consistent. There is some error in the insurance documents. If the draft amount is not equal to invoice amount. Loading and destination ports are not same as provided by the letter of credit. Merchandise description is not same as in the credit. If any of the documents required by the credit is not presented. Documents are generally inconsistent such as quality, etc. If the names of the documents required are not correct, as mentioned in the credit. Invoice is not signed as provided in the letter of credit. If prior to the presentation of the draft, Letter of Credit has expired. If the date mention in the bill of lading is different from the date stated in the credit. If there are some changes in the invoice which are not authorized by the letter of credit. In international sales, as the seller and the buyer are in different countries, there is a common problem of payment due to the difference of time between dispatch and delivery. Obviously, seller would like to receive payment for the goods when delivering them to the carrier and the buyer would prefer to delay the payment of the price until receipt of the goods. Therefore, a letter of credit solves this problem between the seller and the buyer. Generally, there are three separate transactions in a letter of credit transaction. The first is between a seller and a buyer, called an underlying transaction, by which the seller provides contracted goods to the buyer. The second transaction is between the buyer-applicant and the bank (issuer of the letter of credit), in which the bank issues a letter of credit to the seller-beneficiary. Finally, the letter of credit itself creates a relationship between the issuer and the beneficiary, in which, the issuer makes payment for goods upon the beneficiary’s presentation of the required documents, in accordance with the terms and conditions of the letter of credit as agreed between seller and buyer. The bank’s performance of payment is conditional on the delivery of conforming documents by the beneficiary. The banks are called issuers and are usually the applicant’s bank. Normally the issuing bank opens a letter of credit in its own name and requests its correspondent bank to notify the seller about the letter of credit. Sometimes, the issuing bank asks the correspondent bank not only to inform the seller of the issuing bank’s undertaking but also to add a confirmation. In this case, the credit is known as a confirmed credit and the correspondent bank as a confirming bank. The payment obligation of the issuing bank depends upon the beneficiary’s presentation of complying documents to the confirming bank or to any other nominated bank, in accordance with the terms and conditions of the credit. Under general practice, presenting â€Å"complying documents† means that they comply with the conditions of the credit â€Å"on their face†. From banking point of view, compliance â€Å"on their face† of the presented documents is sufficient. The â€Å"independence principle† (which will be discussed later) is the fundamental principle of the letter of credit system, which prohibits banks from looking beyond facial compliance of the documents, and therefore exclude whether or not there is actual performance by the seller-beneficiary. In fact, letters of credit system has emphasised the independence principle to such an extent that banks are ignoring the performance of the underlying contract very confidently. As a result, all the risk is on the honest buyers, who are sometime paying for goods that they had not contracted for. Importance of the research The primary purpose of the letter of credit system is to facilitate international trade, rather than to provide an opportunity to the banks to make profit. As the fraud is very common in these days, but UCP is not designed to prevent fraud. The number of frauds relating to the letters of credit has increased over the years. Buyers are particularly vulnerable to such practices under the letter of credit system. This situation shows that there is some ambiguity in the letter of credit system and a lack of balance between the rights and duties of the parties to a letter of credit transaction, which is being exploited very easily by fraudsters. Division of risk under a Letter of Credit Transaction As we have discussed above, a letter of credit transaction consists of three linked but independent contracts. The first step is that the buyer makes a contract with the seller for the sale of goods, called the underlying contract. Subsequently the buyer signs an application form requesting the bank to open a credit, which is an arrangement between the buyer and the bank. The third step is that the issuing bank informs the seller, who is the beneficiary of the letter of credit, of the credit and promises to pay against the stipulated documents provided the terms and conditions of the credit are met. The letter of credit allocates risk between the applicant and the beneficiary. By postulating a letter of credit, the beneficiary may greatly reduce the risk of not being paid and ultimately allowing the beneficiary of the letter to reallocate the risk of non-payment for delivered goods which do not conform to the underlying sale contract. Generally, banks are reluctant to dishonour a credit, since to do so may damage the bank’s reputation as a credit issuer. The cost of honour, however, falls on the honest applicant, not the bank. â€Å"If the beneficiary has breached the underlying transaction, payment under the credit to him will occasion loss, but that loss will not be the bank’s; it will be the applicant’s.† Increase in the applicant’s risk and decrease in the bank’s risk under UCP UCP is the governing law of the letters of credit, therefore there should be a balance regarding the rights and duties of the parties, but UCP contains rules that reduce bank risk. There is no provision asking for judicial intervention to compensate letter of credit parties in case of bank’s negligence. The provisions in favour of banks fall into two categories. The first provides sweeping immunity from liabilities that national legal systems may impose. Example of such a disclaimer is Article 15. Under Article 15, banks assume no liability for the genuineness, falsification or legal effect of any documents and therefore the issuer is immune from the liability for paying against forged documents, which on their face appear regular. Therefore, the payment by the issuing bank does not show that the buyer has received the goods, which he had contracted for. The security, which the beneficiary is getting under the letter of credit system is not the same with the security of the buyer. The second category of pro-bank provisions contains rules that set precise boundaries on what the banks must do, which reduces uncertainty about bank responsibility and provides clear guidance to bank employees. For example, the customer cannot stipulate non-documentary conditions of payment, and time limits on examination of documents are fixed rather than open-ended. In case of any loss, the buyer, which is the applicant for a credit, can take action against the seller for breach of contract or fraud, but has no right of action against the bank for bank’s negligence in examining the documents, which can be ineffectual for several reasons, such as insolvency of either the applicant or the beneficiary. Hence the burden of risk on the applicant is more than any party in a letter of credit transaction and in most of the cases, buyers are paying for the goods, they have not contracted for. Chapter 2 UCP and letters of credit Originally UCP has been drafted by the Banking Commission of the ICC, which was comprised of the representatives of the banking community, which shows the dominance of the banks and banking experts. Their dominance in UCP drafting, hints that in drafting UCP, ICC was acting as a private legislature. It looks that the rules contain in the UCP are much beneficial for the banks than any other party, and giving a limited chance to the judiciaries to interfere to protect customers from any careless behaviour of the banks. The authority to interpret the UCP rests in the ICC Commission on Banking Technique and Practice, which can apply these interpretations to solve the problems arising in any case. Because of wide publicity and distribution of commission’s answers, their interpretation can be considered as an official interpretation of the UCP. Commission can enhance, interpreting, and sometimes amend the provisions of the UCP. The banks which deal with the letters of credit, act upon these interpretations and any amendments. As in theory, commission is only answerable to ICC members, therefore the chances of any challenge to such interpretation is very low. Role of courts in balancing the rights and duties of the parties In Discount Records Ltd. v. Barclay Bank Ltd., the judge was reluctant to â€Å"interfere with bankers’ irrevocable credit and not least in the sphere of international banking†. The position is same in many other cases. The apparent reason for the reluctance of the judges to interfere looks that they are afraid from the threats of the banking experts that their decisions would have an unfavourable affect on international trade. The difficulties of the courts to balance the rights and duties of all parties to a letter of credit transaction have increased. In Mannesman Handel AG v. Kaunlaran Shipping Corporation, the Swiss bank argued that the bank was in rejecting the documents by the German company relying on the independence principle and the discrepancies appeared on the documents. The court was asked not to apply the good faith principle otherwise the court â€Å"would be calculated to undermine if not destroy the doctrine of strict compliance and to blur if not extinguish the distinction between transactions concerning goods and transactions concerning documents.† Normally the judicial decisions relating to the legal aspects of documentary credits base on either the express intentions of the parties or established business practice at the time, the parties entered in a contractual relationship. In cases where the UCP provisions are different from business practice, a court will apply the UCP if the UCP is incorporated in the contract of the parties. It shows that courts have assented to the entire documentary credit system being run by the banking industry and eventually abstaining the courts to intervene to balance the legal rights and duties amongst all the parties. Should the UCP have the status of law? Leading scholar Professor Ross Buckley says: â€Å"originally, the UCP was neither designed nor intended to be law. It was prepared as a set of standard terms to be incorporated by reference into letters of credit by those parties who chose to do so.† This has also been confirmed by the UCP in the preface of UCP 500, which states that the UCP is not legislation but a compilation of rules made by bankers for their own industry. Therefore there is a dispute as to whether the UCP is a code of the law, or just customary practices, or some mutually consented regulations relating to letters of credit. However in fact, UCP is the governing law of the letters of credit. The Scope of the Banks Duties Before analysing the wording of the disclaimers used, the scope of the duties undertaken by the banks involved must be identified. Whereas the type of credit and the documentary stipulations therein will usually have been negotiated by the commercial parties and included in their sales contract, the terms and conditions under which a bank undertakes to open a documentary credit will normally appear in the banks standard application form which the importer will be required to complete. Although the application would normally refer to the UCP, it is important to note that the provisions of the UCP would not automatically apply in English law if not expressly incorporated by the parties to the credit and, even if expressly incorporated, its provisions can be excluded, or modified by the express terms of the credit. The duty to issue an efficacious credit The importers failure to procure the issue of a documentary credit which conforms to the terms of the sales contract may be treated by the exporter as a breach of a condition precedent to his performance and a repudiation of the contract by the importer. Whether the applicant can sue the issuing bank in respect of its culpable failure to issue (or to issue in good time) a conforming and efficacious credit is, however, by no means clear. The duty to issue a conforming credit An initial problem arises where the applicant requires the issue of a confirmed credit, that is, a credit in which a second bank, normally in the beneficiarys country, adds its own independent undertaking, to pay against the stipulated documents, to that of the issuing bank. Is the issuing bank in breach of contract towards the applicant if it is unable to procure the confirmation? The answer must depend upon the issuers conduct on receiving the application from the applicant. The second aspect of the duty to issue a conforming credit raises the question of liability for the acts of other banks involved in the transaction. Clearly, if the issuing bank opens a credit which specifies documentation other than that called for by the applicant, then in the absence of a disclaimer it will be in breach of its contract with the applicant under the doctrine of strict compliance. The position should be the same where the issuing bank unreasonably delays issue of the credit so that the beneficiary incurs loss. A difficulty arises, however, when it is not the issuing bank itself which causes the error or delay in complying with the applicants instructions, but the issuers correspondent bank. The doctrine of privity of contract would appear to prevent contractual liability arising in this context. However, in any event, it appears that there is no reason for holding that, in the absence of a disclaimer; an issuing bank should not be liable for the consequences of errors by its correspondents. Duty to receive and examine documents The doctrine of strict compliance means that issuing banks which pay against non-conforming documents are in breach of their contractual obligations to the applicant. The issuer is not, however, a guarantor of the documents conformity; its duty is discharged by the exercise of reasonable care to ascertain that the documents comply on their face with the terms of the credit. Duty to make payment under the terms of the credit The party with the primary interest in enforcing the banks obligation to pay against conforming documents is the beneficiary although it is clear that this obligation is also owed to the applicant. Furthermore, any variation of the payment terms would be a clear breach of contract. Duties of correspondent banks In so far as the confirming bank gives an undertaking in exactly the same terms as the issuing bank, it clearly owes precisely the same duties to the beneficiary. However, since a confirming bank looks to the issuing bank alone for reimbursement, it may be prima facie unlikely that it owes any duty to the applicant, even where the applicant is paying the confirmation fee. There are, however, some judicial dicta which might support the recognition of such a duty. Bank’s risk under UCP (exemption clauses) Article 15 and 18 (b) of the UCP 500, limits the liability of the banks in a letter of credit transaction and which have almost made it a risk free transaction for the banks. Article 15 says: â€Å"Banks assume no liability to or responsibility for the form, sufficiency, accuracy, genuineness, falsification or legal effect of any document(s) or for the general and/or particular conditions stipulated in the document(s) or superimposed thereon, nor do they assume any liability or responsibility for the description, quantity, weight, quality, condition, packing, delivery, value or existence of the goods represented by any document(s) or for the good-faith or acts and/or omissions, solvency, performance or standing of the consignors, the carriers, the forwarders, the consignee or the insurers of the goods or any other person whomsoever.† Article 18(b) further states: â€Å"Banks assume no liability or responsibility should the instructions they submit not be carried out, even if they have themselves taken the initiative in the choice of such other bank(s).† The UCP 500 places the applicant-buyer in an absurdly vulnerable position through its disclaimer clauses. To some extent there is a lack of duties on the part of the bank to verify the authenticity of the documents. Hence it might not be wrong to say that albeit there is a waste increase in the use of letters of credit, does not signify that the UCP is fairly drafted. Letters of credit and its users It is also very important that whether all the parties to the letter of credit, particularly applicant-buyer are conscious about the presence of these exemptions, e.g. by providing a copy of these exemption clauses of the UCP or by giving a notice of these exemption clauses. It is a rule that to enforce an exemption clause, a reasonable notice should be given to the other party but in practice, buyers are assume to have the notice of the UCP and that they are familiar with the provisions of the UCP. Further, the application for the issuance of a letter of credit and the letter of credit document itself only contain a simple sentence: â€Å"Subject to UCP for Documentary Credits†, without any attachment of the provisions of the UCP or any notice of such exemption clauses. Hence it is debatable that why the courts do not look, while dealing with the cases relating to the letters of credit, that whether a reasonable notice has been given relating to the exemption clauses and do not interfere to balance the rights and duties of the parties to a letter of credit transaction? Chapter 3 Doctrine of strict compliance and independence principle It is a basic rule of the letter of the credit transaction and which is widely recognised that the letters of credit are transactions independent of the underlying contracts on which they are based. According to this principle, the issuer has no concern with the underlying contracts between buyer and seller. Its concern is with documents only, rather than the goods or any type of services. Obviously there are some doubts about this principle, i.e. to what extent this principle should be applied. Which some tome may cause injustice to the applicant under certain circumstances. Independence Principle Generally, letter of credit is a contract between the issuer and the seller of the goods, which is independent of the underlying contract between the seller and the buyer. The independence principle is mentioned in Article 3 and Article 4 of the UCP. Article 3 states: â€Å"Credits, by their nature, are separated transactions from the sales or other contract(s), even if any reference whatsoever to such contract(s) is included in the Credit.† Article 4 further says: â€Å"In credit operations all parties concerned deal with documents and not with goods, services and/or other performances to which the documents may relate.† From the very beginning independence principle governs letter of credit transactions and very clearly states that the credits are completely separate from their underlying transactions and the issuer makes payment depending on the conformity of the documents presented according to the terms and conditions of the credit without considering the performance of the underlying contract by the beneficiary.