Research On The Legal Relationship Between Applicant Of L/C And Issuing Bank

It is well known that the letter of credit play an important role in business world,especially in international trade.The letter of credit has solved the commercial credit crisis problem between buyer and seller in international trade.Meanwhile,by using the letter of credit and with the aid of the bank credit,international business companies can perfectly complete the payment process through bank financing.Therefore,the letter of credit has been given the glory name of "the creation of commercial genius" and "the blood of international commercial life".The main roles in the letter of credit service are:the L/C applicant,the issuing bank,the intermediary bank and the beneficiary.The complicated relations in the letter of credit business have formed the right and the duty among all parties involved,namely the multi-groups' legal relationships under the letter of credit.This includes the legal relationship between the L/C applicant and the issuing bank,the legal relationship between the issuing bank and the beneficiary,the legal relationship between the L/C applicant and the beneficiary,and so on. With the inspiration from one credit letter related dispute case I have dealtwith,I have conducted the thorough research and explored the specific law for one of the legal relationships under the letter of credit,namely the legal relationship between the L/C applicant and the issuing bank.According to the adjustment of the applicable law,the nature of this specific legal relationship has been proved to be a kind of unique contractual relationship. Then I elaborated the effectiveness and the content of this special contractual relationship.At the same time,I further analyzed the influence the foundation relation,namely the credit letter issuing relation has on the L/C transaction.Moreover,I have further discussed the processing for the economical relation when involves the credit letter criminal offense. In reality,there are many disputes between the L/C applicant and the issuing bank.The application letter for issuing the L/C between the above two parties is the important evidence for the court to judge this kind of dispute.However,because the letter of credit business usually involves all the above parties and there are several links in the middle,the key to judge this kind of dispute is how to correctly define the relations between the two parties,especially how to define the right and duty relations for the two parties.I hope through the research on the L/C issuing relations,I can find the balance between the rights and interests law criterion among all L/C related parties.Thus the dispute will be reasonably solved.