Empirical Analysis Of Letters Of Credit Single-trial Rules

There are different doctrines and opinions about the standards for examination of L/C documents. The rigorous accord principle is the dominating modus operandi in all countries which consist of the mirror image standard, the substantial compliance standards, the standard of a reasonable document checker and the strict compliance standard. Widely accepted UCP600 is consistent with the provisions of the surface of the abstract principle of trial. However, national courts in the application of specific criteria when there is a big gap, so the rules of examination of L/C documents in the practice of administration of justice needs to be resolved.The first standard for examination of L/C documents is Mirror Image. It was once a standard by the Court invoked the major-trial standards in Britain and the United States, the standard means L/C terms between the documents should be like a mirror, like the word-by-word identical, as long as any differences in the documents, regardless of whether the difference is a small, the documents are not accepted. It brought great to legal security, but to make the rules of the standard for examination of L/C documents absolute, resulting in the legal and rigid stereotypes.The second standard for examination of L/C documents is Substantial Compliance. The standard means in the letter of credit that the same standards and the requirements of the documents suggested that there are some differences. It still finds that the request is in conformity with the letter of credit in the single trial should be set aside provisions of the literal meaning of the letter of credit, consideration should be given to whether the discrepancies Examination of the opinion that the provisions of its credit line, the discrepancy is misleading trial will be a single member of their harmful decisions; asked to consider the letter of credit transactions in the background, and then from the literal understanding of the reasonableness. However, in practice, grasping the rule is difficult, resulting in a large number of discrepancies and the surge in cases.The third standard for examination of L/C documents is the standard of a reasonable document checker. Rational examination is the standard single-member in accordance with its industry experience judgment in line document. In some cases that can be encountered in the court must be on what is "reasonable checker" to judge the circumstances, if not considered "a rational checker of the trial in these circumstances how the decision will be made" basis, the judge will not be allowed to judge standards to avoid their pure speculation, that is the subjective assumptions.The fourth standard for examination of L/C documents is Strict Compliance standard, refers to the various beneficiaries of the bank documents requested by bank letters of credit payment, these documents from the surface, the letter of credit must be in strict conformity with the requirements of banks before payments; banks did not have the right to reject the terms of strict compliance with the letter of credit documentation. Strictly in line with the examination principle legal standards reflected. The two aspects of the standard requirements: First, the delivery of documents and letters of credit must be fully consistent with the requirements of the so-called "document consistent with"; second, the delivery of documents must be mutually agreed between the so-called "just in line". Strictly in line with the standard letter of credit is to maintain efficient operations of the root causes of the letter of credit is the cornerstone of the system. At present, the majority of the world's legislative bodies and the judiciary deal with L/C standards alone when it is used strictly in line with standards.By comparison the above examination of L/C documents in legal theory and judicial decisions, the author agrees applying strictly standards. Practice circle for the differences, the writer proposes the reunification of the courts of such letters of credit disputes in the rules, to enhance the safety of credit transactions.