The Fraud Exception To The Legal System

Letter of credit is an important payment tool of the international trade settlement. It substitutes banking credit for commercial credit, letter of credit not only resolves the problem of mutual distrust,but also provides the financing facilities to the two parties in trade. Letter of credit also helps to provide reliable payment for both the buyer and the seller.However, the recent years have witnessed frequent occurrences of letter of credit fraud,which seriously attacks the confidence of both buyers and sellers on letter of credit, and in turn undermines the practices in international trade. China is also one of the victims of the letter of credit fraud. It is an irreversible trend to apply the principle of fraud exception in the international development.In this thesis,I make a comprehensive analysis of this principle through an complete comparision. Based on the suceessful experiences worldwide,I make a proposal on how to improve the legislation and judicial practice in China.The thesis includes four chapters as below:The first chapter focuses on the basic problems of the L/C fraud.As to understand the L/C fraud fully, it begins with the basic conception and the characters of the letter of credit, then analyse definition of the letter of credit from different point of view. Then discuss the range, cause and display form of the L/C fraud.The second part focuses the discussion of the discussion of the exception principle of L/C fraud. Firstly analyse the exception principle of L/C fraud theorecally, then expound the establishment and suitment of the exception principle of L/C fraud on the basis of some related cases.The third part focuses the present situation of legislature system of the exception principle of L/C fraud that of the foreign country.The part firstly introduces the situation of the exception principle of L/C fraud in western countries, and compares the legislature system of England and American. Last, point out the experiences that our country should learn.The fourth part focuses the conception of our country's legislature system of exception principle of L/C fraud. This part begins with the legislation and judical prctice of the exception principle of L/C fraud, then make some proposals on the basis of the present situation of our country.