Legal Research On The Principle Of The Fraud Exception In L/C

Letters of credit (L/C) in international trade has become a mature field of payment settlement system, For countries to traders and banks generally accepted as "the life blood of international commerce," L/C to such a great role to play, simply because of its own independence, Although the principle of independence in favor of the transaction to provide a satisfactory safety and security, but this feature to its easy manipulation, L/C fraud and credit almost concomitant, and we meet by chance, to more and morerisks of commercial trade, Also intensified in recent years, the trend of increasing complexity. So caught in this imbalance in the interests of the Anglo-American countries in the form of case law created a corresponding system -the exceptional principle.The principle is the response to the L/C the rise of the principle of the product of fraud, the law does not protect fraud or unethical behavior, use of the unique letters of credit fraud, illegal operation mechanism of an independent party not entitled to invoke abstract principles, the court applied the principle of fraud exception the prohibition is an important anti-credit fraud remedies to address the independence of the abstract principle of balancing the interests of buyers and sellers leave blank defects and miseries, commonly used for countries. But it should be noted that letters of credit fraud and the ban on the international banking community and national judicial controversy great, not only as an international convention on this issue did not make provisions for UCP, and the issue of international banking practice, especially in the judicial States practice has been in constant development changes. Judicial practice of States in particular, is also inconsistent statutory and case law, each of the past to the present case too many times from change.Foreign trade of China, as a big country in the reform and opening up to become a lawless situation can be even fraud's main target as this increasingly prevalent,This caused rampant credit fraud departments concerned in China, many scholars began to study this field enthusiastic. This is also a reference to the predecessors of the research results, combined with his expertise learned through a combination of Western countries regard the L/C fraud laws, regulations and judicial decisions of our legislative and judicial practice enough, and put forward some suggestion order to perfect the legal system in China to make some contribution to the L/C.