The Fraud Exception To The Principle Of Legal Issues,

The principle of L/C fraud exception has been universally accepted since its establishment in the form of case law in the USA in 1941.Then spread all over the world, almost each state formulated such legal system based on its own situation and the doctrine concerned alike. Since the legal system of each state were various, the formulation of The principle of L/C fraud exception should in accordance with the existed legal system, Correspondingly the difference existed not only in the field of the definition of The principle of L/C fraud exception, but also in the area of the procedure of The principle of L/C fraud exception; further more to what extend can The principle of L/C fraud exception be applied and how to protect the benefits of bona fide third party,when L/C fraud occurs have various settlements in different countries. No matter how each states form it's own system of L/C fraud exception, it shall strictly according to Abstract and independent principle of L/C radiated by UCP to make sure the validity of L/C. Since our country formed our system of L/C fraud exception most recently, it is necessary for us to use a comparative analysis and empirical analysis of this system, with a view to improve our system of fraud exception.Guided by that principle, in close connection with the "UCP",this paper involved in the study of the legal issue about the principle of L/C fraud exception. The first chapter focuses on the definition,cause and types of The principle of L/C fraud exception. After an analysis of all kinds of definition of the principle of L/C fraud exception, I held the view that all kinds of L/C fraud falls in the field of Document fraud; On the basis of a brief introduction on UCP rules and the judgment and legislation of many other nations, I get a fair conclusion on the origin of The principle of L/C fraud exception; At last classified the L/C fraud into four forms on the basis of the main body of L/C fraud, they are Beneficiary Fraud,Carrier Fraud,the fraud of beneficiary and carrier,the fraud of beneficiary and proposer. The second chapter is devoted to the the establishment of the principle of L/C fraud exception. First of all, I set out the relationship between the principle of L/C fraud exception and Abstract and independent principle of L/C, then I draw the conclusion that the application of the principle of L/C fraud exception shall tread Abstract and independent principle of L/C as the precondition; finally I introduced the establishment of the principle of L/C fraud exception and its contents.The third chapter is the study of applicability to the principle of L/C fraud exception, and is also the focus of reference of the paper. This part give an brief introduction on the application of the principle of L/C fraud exception in the USA,Great Britain and China. Then analyzed the jurisdiction and the application of law; the protection of bona fide third party and the repudiate right of the bank. All the points mentioned above lead to a conclusion that the principle of L/C fraud exception shall apply in the L/C fraud and in accordance with UCP rules.The forth chapter mainly introduces the principle of L/C fraud exception in China. Based on the analysis of the legal norms in China, I made an introduction and commence on the principle of L/C fraud exception, also pointed the disadvantages in it. And finally give some suggestion on how to upswing the principle of L/C fraud exception.