Standby Letter Of Credit In China's Laws Apply

In international business, a huge amount of standby letters of credit is applied to practice. Due to lack of related law on standby letters of credit in China, to handle standby letters of credit will face many legal problems.The thesis examines one question: when parties don't choose applicable law of standby letters of credit, how will China courts apply the law or practice of usage? If China courts choose native law as an applicable law, the legal comment on native law will make parts of standby letters of credit null and void. The study tries to give a standard to judge validity of a standby letters of credit in China. I also propose that China courts should apply such practice of usage as ISP98 to practice. The thesis consists of five chapters.Chapter I : This chapter doesn't amount to the comprehensive study of standby letters of credit, instead, attention is directed towards the point that standby letters of credit is a kind of contract, because of which theory on applicable law of contract will become abase of choosing applicable law in standby letters of credit.Chapter II: This chapter summarizes principles of applicable law on standby letters of credit. The principle has two parts: parties to contract have chosen the applicable law; and they haven't.Chapter IE: This chapter focuses on the case that parties don't choose an applicable law when they apply for letters of credit. According to "the most significant relationship", native law will be applied to the standby letters of credit. But the limited legal comment on independent guarantee results in obscure standard to judge validity of standby letters of credit.Chapter IV: To answer the question mentioned before, I firstly propose that the court should directly choose ISP98 as applicable law without choose made by parties, after comparing and contrasting different practice of usages. On the other hand, I try to generalize the standard to judge validity of standby letters of credit.Chapter V : This chapter concludes what the thesis attempts to specialize.