Research On The Legal Effect Of Letter Of Guarantee

Letter of guarantee means, when documents arrive later than ship's arrival, in order to get goods in time, receiver or third party offer the letter to the carrier, which guarantees the responsibility of covering the cost and making the goods delivered in time. Letter of guarantee was created by the phenomenon of international delivery of cargo without presentation of original BL. It brings the party shortcut and convenience, and also it compensates for its stiffness in BL which makes the burdens during the seaborne trade. It is beneficial to the international seaborne trade. However, letter of guarantees affects the nature of the only property that a bill of lading has, bringing an enormous challenge to the bill of lading system, and having a great impact on the international shipping trade in the normal order. At the same time, get goods by copy B/L and letter of guarantees goes against with the statutory obligations that carrier delivery of cargo with presentation of original BL, which provides chance for fraud of letter of guarantee.It also bring tremendous damage to trade, shipping ,financial and other parties. Since the Letter of gurantee has been put forward, the lawsuit of it occurs from the global frequently. Jurists have continued to discuss about the effects of it, and they have not get a consistent conclusion. Therefore, it is important to discuss about the phenomenon of the Letter of guarantee and its related legal issues.Firstly, the essay will begin with the present situation of the Letter of guarantee, and investigate its existence of rationality and legitimacy. The author will use literal analysis method, qualitative analysis methods and other interpretation methods to argument and analysis about the nature and affect of Letter of guarantee from several angles. To draw a conclusion that Letter of guarantee has the attributes of credit. As the alternatives of BL, it is rationality . This part is the innovation of this essay. Secondly, the author will use the method of comparative analysis to explore the standards of the effectiveness of delivery guarantee from different countries. On the one hand, the effectiveness of delivery guarantee should come into force only in bounds of goodwill; on the other, it must be took effect on the occurrence of the losses. The author will discuss legal liability ineffective letter of guarantee, and put forward the conception and countermeasure to improve the legal system of Letter of guarantee. summary:to find a better use of the delivery guarantee system in pratice and the harmonious intersection between legitimate and rationality.