Course Listing

Trade Finance Law
Last Updated Date:   8 July 2025


4 Units,  Semester 1

Course Description:
This course considers financial aspects of the private law of international trade, namely payment and guarantees. Consider an international sale of goods. A seller who ships goods overseas without being paid in advance runs a number of financial risks, namely: (1) the buyer’s insolvency before payment is made; (2) the buyer’s wrongful refusal to pay for the goods and litigation in a potentially unfamiliar jurisdiction; (3) a justifiable refusal by the buyer to pay for the goods due to a genuine allegation of non-performance by the seller; (4) political risks leading to non-payment of the price. A buyer who pays in advance also runs the risk that the seller may not ship the goods. Introduction of an intermediary, e.g. banks, in whom the parties repose confidence may help eliminate these risks.

This course focuses on various legal mechanisms used in international trade to securely effect payment for the goods and services, payment mechanisms such as collections, documentary credits and bank-to-bank reimbursements. Banks can also help secure contractual performance of the parties to the underlying transaction, which is often achieved with the help of such legal mechanisms as on demand guarantees and standby letters of credit (cumulatively known as autonomous guarantees). Autonomous guarantees may be issued by banks in relation to a wide range of underlaying transactions including sale of goods, shipbuilding, etc.

This course focuses on the nature of the obligations undertaken by contracting parties, the principles of strict compliance, irrevocability and autonomy, and also considers various exemptions to the principle of autonomy, including the exceptions of fraud and nullity. The course concentrates on the legal rules promulgated by the International Chamber of Commerce, such as Uniform Customs & Practice for Documentary Credits (UCP 600), Uniform Rules for Demand Guarantees and others as well as the relevant case law.

Course Convenor: Visiting Senior Fellow Dr Sanam Saidova

Co-teacher(s): NA

Course Codes: LL4322 / LL5322 / LLJ5322 / LL6322 / LLD5322

Contact Hours: 9 sessions over 3 weeks: Three 3-hour weekly seminars

Workload: Intensive: Weeks 4 – 6; Dates: 1 – 19 Sep 2025 [Mon: 6.30pm – 9.30pm, Wed: 6.30pm – 9.30pm & Fri: 3pm – 6pm]

Mode of Assessment: Class participation - 10% & 6-hr Take-home Exam - 90% [Release: Fri, 24 Oct 2025 (3pm); Due Fri, 24 Oct 2025 (9pm)]

Preclusions: Nil

Prerequisites: NUS Compulsory Core Law Curriculum or common law equivalent.

Students should have covered the core private law subjects of Contract, Tort and Trusts.

Examination Date: Different Mode of Examination

Click here to go Back