Issuing The Applicant And The Issuing Bank Legal Relationship Study

Documentary credit, as an important means of international payment, plays an indispensable role in the development of international trade. This dissertation discusses the relationship between the issuer and the applicant under the letter of credit transaction.This dissertation falls into four parts.The first part is a general introduction of the legal documents concerned on which the legal relationship is based. The author thinks that the two documents filed by the applicant are the offer put forward to the issuing bank.The second part is on the nature of the legal relationship. Having compared the existing theories, the author thinks that the existing theories have something reasonable, but the theories are somehow in conflict with the practice of documentary credit. The author puts forwards that the nature of the relationship is an atypical contract, which is not stipulated in the Contract Law.The third part is a study on the rights and duties of the parties during the process of issuing the letters of credit. During this stage, the issuer should issue the documentary credit as instructed by the applicant; and the applicant should provide adequate security for the issuer as requested by the issuer.The fourth part is the analysis on the rights and duties of the parties during the process of settlement. The author discusses in the following respects: the standard of document examination, the time limit of document examination, and the requirements of a valid refusal notice and fraud exception. The author puts forward that the standard of examination is not substantial compliance or literal compliance but strict compliance. Every document checker should be a reasonable one. As to the time limit, the author thinks that "reasonable time" should be determined by the concrete case, that is to say "reasonable time" is not a...