The new 'asplenium clause' unconscionability unwound?

Wooler, Garth (2016) The new 'asplenium clause' unconscionability unwound?. Singapore Journal of Legal Studies, 169-182.

Author Wooler, Garth
Title The new 'asplenium clause' unconscionability unwound?
Journal name Singapore Journal of Legal Studies   Check publisher's open access policy
ISSN 0218-2173
Publication date 2016-03
Year available 2016
Sub-type Article (original research)
Open Access Status Not Open Access
Start page 169
End page 182
Total pages 14
Place of publication Singapore, Singapore
Publisher National University of Singapore * Faculty of Law
Collection year 2017
Language eng
Abstract Just at the point where the unconscionability exception to the autonomy principle pertaining to letters of credit and demand guarantees appears to have finally emerged fully developed, the Singapore Court of Appeal has recognised the right of parties to contractually limit the range of causes of action available where the parties enter into a dispute. Finding such contractual terms enforceable has now taken the unconscionability exception almost entirely out of play and simultaneously shifted the power balance to the beneficiary while making the letter of credit product more attractive to rational buyers. The effect of the new ‘Asplenium Clause’is yet to be fully seen but this paper concludes that in the immediate term, boilerplate clauses will be entered into every contract of sale that requires a guarantee to be provided, thereby virtually eliminating unconscionability as a grounds for enjoining against abusive calls on independent guarantees.
Keyword Singapore Court of Appeal
Unconscionability exception
Asplenium Clause
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ
Additional Notes http://law.nus.edu.sg/sjls/current.asp

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
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Created: Wed, 27 Jul 2016, 08:54:44 EST by Carmen Buttery on behalf of T.C. Beirne School of Law