Research On Several Aspects About Documentary Credit

Documentary credit plays a key role in the international economy transaction. In the process of settlement under letter of credit, there are many law problems remain unsettled. And lots of scholars brought out their worthful viewpoint from every aspects. The purpose is to take up the main problems of the documentary credit settlement in a whole view after the research and exploration as possible as the author can.Sources and nature of law of letter of credit and the relationship of the parties are bases of the legal relationship of the letter of credit. Once there were many powerful theories about the nature of law of letter of credit, such as contract theory, theory of agency, the estoppel theory, assignment theory, contract for the benefit of third party and unique style theory. Through the comparison and analysis among the above theories, the last one is considered more appreciated. The distinguish of the right and obligation of every parties is taken up from the point of legal relationship.It has been a hot point for academic circles that 《uniform customsand practice for documentary credits》 had confirmed the transaction principle. The understanding and application of the principles of abstraction of the credit promise and the accordance still require the further exploration. Most countries have submitted themselves to the exception of abstraction of the credit promise — exception of documentary credit fraud, but in the practice it is not so successful. Concerned about this, the paper brought out several superficial opinions based on legislation about judicial relief against credits fraud.