Research On Letter Of Credit Soft Clause

The letter of credit is one universal settlement method in the current international trade , it replaces the commercial credit by the bank credit to undertake the payment responsibility to the seller and is one safer trade settlement way, but now the existence of soft clause has greatly weaken this kind of bank credit function and constitutes huge risk to exporters. So this article will conduct thorough research to this question, carry on thorough analyses embarks from the letter of credit elementary theory to soft clause nature, the type, fraud exception theory, reason for existence as well as the relief way. In view of the fact that the current domestic and foreign scholars from all walks of life are indefinite to the letter of credit soft clause nature, key point of this article is to analyze soft clause nature, relief, precaution and so on through the fraud theory, the fraud exception theory and the letter of credit and the relations with foundation contract and others. Not including the preface and the conclusion, this article mainly covers three chapters; separately discuss letter of credit soft clause elementary theory, relief theory and fraud exception theory. The first chapter is about letter of credit soft clause elementary theory, mainly discusses letter of credit soft clause characteristic, cause and nature so that we can have a comprehensive understanding of letter of credit. The second chapter is about letter of credit soft clause types and its relief, this chapter makes some inductions to several types of and makes some discussion to letter of credit soft clause relief questions. The last chapter is about letter of credit soft clause risk precaution, from enterprise's angle, this chapter makes some discussions on how to guard against letter of credit soft clause which include two parts that are own construction and cooperation with others.