A Contrastive Analysis Of The Elements Of Credit Fraud And Credit Fraud

As a method for payment, LC has won its credibility in the worldwide trade today. Letters of credit in China’s import and export trade are also widely used. This paper mainly studies two kinds of LC disputes including crime of fraud and civil fraud that are both highly specialized in legal and trade issues.Properly dealing with these two distinct concepts is a matter of great urgency in both theory and practice. As LC crime of fraud and LC civil fraud have become frequent acts in the world nowadays, China has also faced enormous challenges in such matters. There is still ambiguity in existing penal provisions and judicial interpretations, which cause different judgements in different courts when facing similar cases. Therefore, LC crime of fraud and LC civil fraud ought to be clearly and strictly defined so that in judicial practice all cases involved are judged correctly. How to make the boundaries between LC crime of fraud and LC civil fraud clear has become an important issue of the law.This article attempts to clarify the dominating development of LC fraud exception and some essential elements of LC fraud crime, explain the theoretical basis and practical importance of comparative analysis on LC crime of fraud and LC civil fraud, clearly identify some legal provisions in China and abroad involved. In the context of China’s existing legal provisions and judicial interpretations, the writer tries to identify the overlaps between LC crime of fraud and LC civil fraud, reveal the distinctions between the two concepts with some analysis on relevant judicial cases in China. Finally, the article will make several recommendations on how to help tell apart the LC crime of fraud from LC civil fraud.