Fraud Exception Principle And Its Application

Letter of credit is the extension of banking credit to commercial area, which substitutes banking credit for commercial credit and which paves the way for international trade. Letter of credit has been widely used in international trade and become the most important method of international settlement.With the rapid development of international trade, the international frauds on letter of credit also rockets, which will undermine the trust in letter of credit and between trade parties. Thus, it is in urgent need to study the principle of exception on fraud in theory and practice.This thesis goes with four chapters. The first chapter considers fraud on letter of credit and the principle of exception on fraud. The second chapter considers the jurisprudential basics and conditions of application of the principle. The third chapter considers application of the principle. The fourth chapter considers the application of the principle and the way to improvement in China.