Bad Faith and Unconscionability
Wayne State University Law School
DCInsight, Vol. 18, p. 6, July-September 2012
Wayne State University Law School Research Paper No. 2013-12
This article challenges the notion that inquiries into bad faith and unconscionability in the underlying contract are proper when a letter of credit applicant seeks to stop payment under a letter of credit. Judicial inquiry into the underlying contract to determine whether there has been bad faith or unconscionable conduct retards the quick-payment feature of letters of credit, increases their costs, and externalizes what should be the applicant’s costs on the letter of credit as a commercial product.
Number of Pages in PDF File: 5
Date posted: May 11, 2013