Edinburgh Napier University

  This article looks into the legal status of the UCP in two major common law countries — England and Canada. It seeks to show that a transition is under way and that the UCP is slowly becoming recognised as an international commercial custom by the English and Canadian courts. The first part considers the standing of the UCP in England and how far it is applicable as part of either custom or usages as a formal source of law. The second part looks at the courts' consideration of the legal basis of application of the UCP to a contract when it has not been expressly referred to in a letter of credit. Finally, Canadian law and the application of the UCP by Canadian courts is briefly discussed.