International law is basically the set of rules and principles that control and govern commercial relationships within the different nations of the world. International law can be specifically defined as the relationship between individuals and states, as well as the relationship between different organizations operating globally. Basically, there are two types of laws that regulate the international trade scene: public international laws and private international laws. Public international law deals with rights between nations and its citizens, while private international law deals with activities between private persons, legal or natural, in relation to more than one nation. However, recently the line between private and public international law has been very unpredictable. Even though both of these laws are interconnected, many times in some areas of activity conflicts and contradictions may normally arise.1 International law includes the basic and classical concepts of law in national legal systems: status, property, obligation and tort (or delict). . . It also includes substantive law, procedure, process and remedies. International law is rooted in acceptance by the nation states that constitute the system. International law is a crucial aspect in international trade and mainly concerns cross-border transactions. Because international traders are highly subject to international trade laws and policies, they work in good cooperation with legal professionals and international trade consultants.1 Cornell University of Law School. 2010. International Law. [ONLINE] Available at: http://topics. law.cornell .edu/wex/ International_law. [Accessed 18 Feb 11]. Legal theory...... half of the document...... legal framework relating to international trade. The development and progress in the field of transportation, communications and technology has given a new dimension to the commercial world and requires a high legal strategy from national and international legal authorities. At present, China and India are the rapidly progressing nations and the former has occupied the leading position in the international trade scenario. Each country in the progressive stage is updating and closely monitoring trade policies to make working procedures of business activities across international borders easy and comfortable. Another important factor is that international trade is much more expensive and cost-intensive than domestic trade, and a strong and flexible trade policy is essential for free trade between nations to grow economically consistently..