L/c Swindling Exception Principles Research

Letter of Credit is one of the most important transaction tools in the international trade.It greatly reduces the risk of the seller with the replacement of business credit by bank credit, which not only solves the trust crisis between the buyer and seller, but also make the finance process much more convenient. But L/C is not perfect. Because of it individual abstract principle L/C fraud is more and more serious, which has become an international problem. Facing to this problem, in order to remediate the defect of L/C regime, most nations in the world create the principle of L/C fraud exception. Fraud Exception of L/C was first created in the United States by the Sztejnv case, and now it has been widely accepted by the other countries including China, the Supreme Court of China issue "Regulations on The Trial of Cases Concerning Letter of Credit", which contains a lot of provision about the fraud exception.This paper discusses four part L/C swindling exception principles and its suitable aspects of theory and practice. The first chapter Outlines L/C swindling exception principles, The second chapter focuses on the L/C swindling exception principles theoretical basis and the problems existing in the applicable, The third chapter of the international community about L/C swindling exception principles applicable comparative study, The fourth chapter aiming at the L/C swindling exception principles legislation and practice questions and thinking.