This article is the second in a series looking at how to address some of the issues affecting trade finance documentation and transactions in the current climate.
The first article in this series analysed some of the issues that parties to a trade finance transaction should be aware of when considering amendments and waivers to their written contracts. This article continues to explore the issues that arise in connection with amendments and waivers, focusing first on the common question of how best to document an agreed amendment or waiver to an English law contract, and then considering how amendments or waivers to one contract can potentially (and possibly detrimentally) impact a party’s rights under a connected contract, and finally how to take steps to avoid or mitigate such impact.
How should I document an amendment or waiver in a trade finance transaction?
The starting point is always to consider any requirements set out in the relevant contract. Even if a contract is silent as to how it should be amended or waived, it is advisable to make any amendment or waiver in writing as, if well drafted, doing so helps to mitigate any later dispute about the intended scope or effect of the amendment or waiver.