On The Case Of Independent Letter Fraud Disputes About China Company A V. Costa Rica Company B

As an important financial instrument in the fields of foreign trade,international investment and project contracting,independent guarantee plays an increasingly prominent role in international trade.In judicial practice,only the Supreme People's Court's Provisions on Several Questions Concerning the Trial of Independent Guarantee Disputes,implemented in 2016,can be used as a legal basis for the courts to hear guaranty fraud disputes.Although the provision fills in the legal gaps in the concept,scope of application and types of fraud of the previous independent guarantee,it is difficult for us to solve all the legal issues involved in the above-mentioned judicial interpretation framework.The theoretical circle and the practical circle still have disputes on the basic legal issues such as the criterion for the confirmation of fraud and the conditions for stopping payment,which are involved in the fraud dispute cases of letter of guarantee.In the case of guarantee fraud disputes,when the beneficiary submits the claim documents or documents in conformity with the guarantee agreement,if there is no evidence to prove that the claim documents are false or forged,the beneficiary can be identified as having the preliminar y evidence of the guarantee claim.Beneficiaries claim the right of guarantee in breach of contract,which does not necessarily constitute fraudulent claims under independent guarantee.We should analyze whether the beneficiaries are in conformity with the fraudulent situation of guarantee.In the counter-guarantee letter,only when the guarantor knows that the underlying guarantee is fraudulent and malicious,and claims against the counter-guarantor,can the anti-guarantee letter be suspended.The application of the exception clause of guarantee fraud in China's legal system is relatively vague,which leads banks and foreign trade enterprises to face unpredictable legal risks in economic exchanges,and the court's trial of related disputes will also be in a dilemma.Therefore,it is imperative to speed up the construction and improvement of the legislation of independent guarantee system.