Research On A Number Of Legal Issues Of Credit Card Fraud

The letter of credit, which is a great creation in the development of the International Financial Law, is a kind of international settled tool developed by banking and trading to solve the beneficial clash among all parties in the international business transaction. The principle of independence and abstraction is the secret that the L/C can exist,develop and play an irreplaceable role. This principle is also the foundation and mainstay of the L/C payment system.It set the absolute duty about the corresponding documents under cashing the L/C of the opening bank,that is,It forbade any defences and withholding payment beyond the inconformable documents.Itdemands to unswerving adhere to this principle without any exception.In the L/C practice,this absolute principle caused the swindles of the L/C,which are so overflowing that it faced stern challenges.People began to suspect the justice and equities of the L/C system. facing so many cheats,UCP500 left such a problem,which is how to balance the clients' interest as much as possible under the precondition of the undamaged of the L/C system,to the International Law of each country.In order to balance the clients' interest,protect the legal benefits of the victim and the well-intentioned third party and also make the pay system of UCP500 more effective and safe,some countries,especially the western countries made the exception in the practice of the justice administering of L/C cheating.Under the principle of independence and abstraction,it also based on the principle of honesty and credit as well as cheating making everything nullified.A relief system was built to give the justice-administering relief to the victim of the L/C cheating.The exception allowed under the condition of L/C cheating compensates the insufficiency of the L/C. The exception of cheating doesn' t mean getting rid of using the principle of independence and abstraction in any condition of cheating.Only under certain occasions,does the bank have right to refute and can the court get rid of using this principle by means of prohibition.Prevention beforehand, but not remedy after the event, is the effective meansguarding against the L/C swindles,which are, however, unavoiding.Refering to the...