The L/c Soft Clause Question Research

Letter of credit is the most common method of payment in current international trade, it is arising with the rapid development of international trade, and under the background of the actively participate in trade settlement by the bank and other financial institutions. Letters of credit require the banks to take responsibility for payment, a better solution for the problem that the distrust between the trade parties in the transaction, but also providing convenience of financial for the parties in the transaction, so that appearing in the international trade it is widely used and the problem of soft clause also appeared as an integral part of credit research. People both at home and abroad have studied the problem of soft clause and with which many different theories of classification, characterization, effect arising. But compared to the "UCP500", the "Uniform Customs and Practice for Documentary Credits" (hereinafter referred to as "UCP600") taken effect by the International Chamber of Commerce in 2007, not added the provisions for soft clause yet. Currently, there are not international rules or international practice to standard soft clause. There are not special rules about the soft clause in china now either. In order to continuously develop and improve the credit system to meet the needs of the development of modern international trade, we should have a correct and uniform understanding of the soft clause. From the basic concepts of the causes, nature, classification, common types, analysis of the problems encountered in practice of the soft clause, this article discuss about how to prevent and relief the soft clause problem in order to achieve a overall understand of soft clause and improve the credit payment system purposes...