Part II Electronic Documents: Legal Framework, 4 Legal Framework to Govern Electronic Payment and Electronic Presentation of Documents

Subject(s):

Sea waybills — Electronic commerce and choice of law

This chapter focuses on the legal framework to govern electronic payment and electronic presentation of documents. Because of the significant role that is played by banks in international trade transactions and the greater efficiency with which they could perform this role if they were able to receive and process trade data electronically—particularly where a documentary credit or supply chain finance arrangement is in place—it is important to examine whether presentation of a document set to a bank under a documentary collection, or a documentary credit agreement, may be made electronically. The chapter also looks at electronic alternatives to negotiable financial instruments such as bills of exchange, drafts, and promissory notes, which remain important financing tools, especially for small and medium-sized enterprises.