DCInsight, Vol. 18, p. 6, July-September 2012
5 Pages Posted: 11 May 2013
Date Written: 2012
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.
Suggested Citation: Suggested Citation
Dolan, John, Bad Faith and Unconscionability (2012). DCInsight, Vol. 18, p. 6, July-September 2012; Wayne State University Law School Research Paper No. 2013-12. Available at SSRN: https://ssrn.com/abstract=2263428