Research On The Principle Of L/C Swindling Exceptions In China’s Legal Practice

Documentary letter of credit is the most usual mode of payment in international trade today, therefore it is named "the lifeblood of international commerce. Letter of credit, namely L/C, is the significant innovation of businessmen, and gradually turned into a commercial practice. In the long history of its development, letter of credit, interacting with legal system, enrich both of their content. However, with the boom of L/C usage in international business, problems such as L/C swindling began to overflow. The main reason lies in the imperfection of related legal system.China, being the second largest entity of international business, lacks of many legal provision on L/C, leading to great losses in reputation of our commercial banks and courts. By expounding existent problems in our legal system of L/C and providing corresponding solutions, this thesis aimed to contribute to China’s foreign trade as much as possible.