Good Faith and Consistency in International Agency Contracts - Research Paper Example

It is seen that the main aspect between the conduct of international law is the agreement between the parties and, subject to any laws to the contrary, this would serve as the bulwark of business relationships between the signatories. In the event of any dispute, or any inconsistencies or non-conformity with the covenant, the matters would have to be contested and decided according to the dispute resolution procedures enunciated in the document. In the unusual case of Hum v. Council, on appeal from the Malaysian Court of Appeal [1967] 2 Lloyd's Rep. 437. (Kum v Wah Tak bank 1997).

It is seen that the bank was able to enforce title over goods shipped, by claim over the preliminary document – Mate’s Receipt, which is, under normal circumstances not seen as a document of title to good. In this case, the bank was able to enforce the claim, since it was named as consignee, and had advanced funds against the shipment. However, in the case of Hathesing v. Laing, this was enforced. Again, in Nippon Yusen Kaisha v. Ramjiban Serowgee, the mate's receipts were envisaged as preliminary documents only, which would normally later be given up for a bill of lading, the latter being used as a document of title.

(Kum v Wah Tak bank 1997). The aspect is important since a balance has to be struck between the question of law and agency norms, on the one hand, and the need to provide justice in the agency business. This is even more difficult in the case of agency business, or where self-employed commercial agents are involved.