Methods of Payment Consideration in International Law of Commerce

One of the most important issues in the international law of Commerce is selecting a proper, rapid and accurate method to secure the financial sources for payment of commodity prices. In the field of international transactions, there are different methods for payment. The most important of them are payment in advance, payment on open account, collection method including clean collection and documentary collection, and documentary credit. The effectiveness of each of these international methods of payment in lessening the risk is to be considered in regard to existing dangers in the international scene, such as export and import restrictions by states, fluctuations of equality rates from the date of conclusion of contract until the date of price payment. Using the documentary credit as a flexible method can best guarantee the rights of parties in the international transactions and create a favorable balance between economic benefits of exporters and importers by reducing different contractual risks. A review of the keymethod in foreign trade transaction forms the original structure of this article.