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Bad Faith and Unconscionability

DCInsight, Vol. 18, p. 6, July-September 2012

Wayne State University Law School Research Paper No. 2013-12

5 Pages Posted: 11 May 2013  

John Dolan

Wayne State University Law School

Date Written: 2012

Abstract

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

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

John Dolan (Contact Author)

Wayne State University Law School ( email )

471 W. Palmer
Detroit, MI 48202
United States
313-577-4856 (Phone)

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