Sources of International Trade Law

Introduction


        Many countries do not have a separate body of laws for dealing with international trade transactions. Nonetheless, this absence of a separate code or body of rules does not prevent those countries in dealing with international trade transactions. They can use alternative sources of international trade law to resolve their legal problems. This paper is going to analyse the principal sources of international trade law that apply in the domestic jurisdiction, especially when there is no separate body of law in a country for dealing with international trade transactions. Also, it is going to analyse the relevant parts of municipal law that can apply to the governance of international trade transactions. The questions that this essay is going to analyse are: What are the sources of international trade law? What are the alternatives available for countries to deal legally with international trade transactions? What alternative is most recommended for international trade law? When do relevant parts of the municipal law apply for the governance of disputes arising from international trade transactions?



The alternatives and sources of international trade law


        It is common known that source of law means the origin from which rules of human conduct start to exist, deriving legal force or binding characters.


        This paper attempts to demonstrate that there are more than one alternative of rules applying to international trade transactions that bind parties of international commercial transactions.


        The first alternative is the application of parts of the municipal contract law for governing international trade transactions where there is the absence of a separate body of rules. According to Berman[1], the municipal contract law of each country can govern the international trade transactions. This alternative may rely on the universal understanding of contract terms. Due to the considerable risks of...