Soft Clause In Letter Of Credit & The Prevention

Today, credit letter is the most important mode of payment in theinternational trade. Through this mode, bank credit takes the place of tradecredit and international trade makes great developments. However, due to theinnate drawbacks of credit letter and the complexity of international trade,soft clauses often can be seen in credit letter, this phenomenon interfere theorder of international trade seriously. So it is both necessary and meaningfulto make further researches on the problem of soft clauses. My article beginswith the development of credit letter, introduces present condition of softclauses, and then I argues the lawful characteristic of soft clauses. At last, myarticle provide some prevention methods concerning with the soft clauses.The first part of my article argues the development of credit letter. My centreconcern is why the credit letter is widely adopted in nowadays and I drawsome important reasons through analyzing the dilemma that exist in thepayment of international trade. In the second part of my article, the presentconditions of soft clauses are discussed. My research shows that, for avoidingthe use of soft clauses, we must understand its forms when it is used.In the third part, I give a clear definition of soft clauses' lawful characteristic.On the premise of differentiating the lawful characteristic of credit letter, Imake it clear that the nature of soft clauses is one kind of conditional civiljuristic acts. The fourth part of this article analysis the relationship betweencredit fraud and soft clauses. The use the soft clauses is one kind of fraud acts,but the right way of solving this problem is to prevent its happen. The aim ofthe last part of my article is to look for some effective strategy to the softclauses. Firstly, through analyzing some cases of the credit fraud in criminallaw, civil law and judicial interpretation, I single out some relevant problems.Secondly, from the point of view of practice, I give some details about someways of solving these problems.