Ucp600 And Under The Letter Of Credit Soft Terms Studied

Letter of credit is an approach of payment which is widely used in international trade. The payment by documentary credit solved the problem that the two parties involved in the international trade do not trust each other and can guarantee the safety of the trade while providing financing service at the same time. The ICC Uniform Customs and Practice for Documentary Credits (UCP) is the most widely used customs on the letter of credit, which was recently revised by ICC in 2006 and is now known as UCP600. The paper discusses the legal issues of soft clauses on documentary credits under UCP600. In the introduction part, a couple of definitions of soft clauses given by scholars in China are introduced and varies forms of the soft clauses are illustrated and grouped. Chapter 2 is an analysis of the reasons for the soft clauses to appear and exit. It Chapter 3, it is pointed out that a documentary credit is a contract with terms while the soft clauses are the terms. Based on the theory background as illustrated in the previous chapters, Chapter 4 raises several legal suggestions to deal with the soft clauses in the aspect of simplifying the identification of soft clauses and balancing the rights of the exporters and importers.