A Study Of Issues About Legal Remdies For Fraud In Letter Credit

Letter of credit is the most important payment tool in the international trade business, however, the Independence Principle, as the fundamental principle of letter of credit, are born to with defect, which provides a hotbed for fraud in letter of credit due to its mechanism that only cares about the documents deal, but is no concern of the fundamental contract. Countries like Britain and the United States, which both have nearly 100 year's experience of protecting against fraud in letter of credit in legislation judicial practice, while China has just began to establish its experience in protecting against since the Reform and Opening Up. The thesis starts from the origins of the fraud in letter of credit, and analyze the most important system in protecting against fraud in letter of credit, which is the Interlocutory Injunction system, then the thesis provides some suggestions for perfecting China's system of remedies for fraud in letter of credit with the analysis of china's legislation practice. The text of this dissertation is divided into three parts:Chapter one is the analysis of the concept and origins of the fraud in letter of credit. It is impossible to strike a unanimous concept in the world, and the International Chamber of Commerce (ICC) evades the concept as well, just because the concept of fraud varies in different countries. The origins of fraud in letter of credit are from three aspects: the defects of system,which is the Independence Principle providing hotbed for the fraud in L/C; subjective reasons, which are Chinese enterprises are unfamiliar with the international practice, and pay less attention to the credit investigation towards the foreign counterparts, and those lawless persons are driven by the huge profits and lower risks of the fraud in L/C; objective reasons, which are the difficulty of transnational recourse, and the complexity of the system of L/C.Chapter two is the analysis of the system of Interlocutory Injunction, which is the main system of remedies in protecting against fraud in L/C. At first, it is the introduction of the application condition and the procedure of American Interlocutory Injunction. American Interlocutory Injunction has two kinds, Temporary Restraining Order (TRO) and Preliminary Injunction. The application condition of Temporary Restraining Order is to prove urgent necessity of the potential harm, while Preliminary Injunction's application condition is stricter, the applicant should demonstrate conditions such as fraud existence and being material, and the applicant's probability of success on the merits and so on. Then it is the analysis of the system of Interlocutory Injunction in Britain. In Britain, the application condition includes three parts: the applicant should demonstrate the sufficient cause which is to demonstrate that the fraud exists and the counterpart is aware of the fraud; to demonstrate that the cause of action exists, which means the counterpart breaches the contract obligation; the balance of convenience shows that it is proper to issue the injunction. Then it is a latest case in the United States to concretely analyze the application condition and the procedure of American Interlocutory Injunction. In the end, it is the analysis of the UCP600 about the prevention of fraud in L/C。In chapter three, it is an analysis of the legislation practice of China in protection against the fraud in L/C since the Reform and Opening Up at first, and then, it is the analysis of the introduced injunction system in China's IPR protection area. In the end, it is the conception of establishing injunction system in China's relief system of fraud in L/C.