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Can We Add Docdex As A Dispute Clause In LC?
Posted: Sun Oct 05, 2008 11:05 pm
by dholat
dear sirs
my company will be issuing a big volume Letter of credit covering import of food grain. now i wanna add a dispute clause in the LC. just in case. can i add docdex as the dispute clause?
rizvid
Re: docdex in case of dispute
Posted: Mon Oct 06, 2008 2:58 pm
by iLC
your intention is not clear to me. are you saying that if there is a dispute, it will be resolved by docdex panel? if yes, i will advice you to include another clause stating that the parties will be bind by the decision since docdex rules days
Unless otherwise agreed, a DOCDEX Decision shall
not be binding upon the parties.
by the way, do you know that it will be very expensive? i also dont understand why its so necessary to include a dispute clause. better put emphasis on the fair trade.
iLC
Re: docdex in case of dispute
Posted: Mon Oct 06, 2008 6:36 pm
by cristiand969
Dear Dholat
Though question... you have to consult all parties involved (issuing bank and DOCDEX) on the following reasons:
1. Nominated bank/confirming bank (I assume) may not be aware of the DOCDEX rules and it must confirm in writing the adherence to that.
2. DOCDEX PANEL
according to article 2 of DOCDEX RULES
The Initiator shall apply for a DOCDEX Decision by
submission of a request (Request). The Initiator may
be one of the parties to the dispute applying individually,
or more or all parties to the dispute submitting
jointly a single Request.
From the point no. 2 it implies that a dispute has to exist before placing a request to DOCDEX.