On The Independence Of The Credit And Fraud Exception

As a financial instrument, a trade settlement methods,Letters of credit is one of the product of the development of the international trade in goods. With the increasing heat of international trade, letter of credit has become a widespread adoption of the important means of payment in international financial and trade fields. After China's reform and opening up, we are playing a different role in the practice of more and more letters of credit. It is, therefore, whether in common law countries or in just a few decades of reform and opening up of China, there are increasing judicial case of the letters of credit.In this paper, I will start from the analysis of the basic characteristics and the nature of the different theories of letters of credit; draw on the unilateral nature of the views of the contract of letters of credit, its independent nature and abstract principles of relations. With these related cases about the application of the independence of letters of credit, the circumstances which exclude the application or lead to the discussion of the fraud exception. From the fraud exception of the principle of independence and boundaries, a complete explanation in the letter of credit in the principles shows how to play a role. Then, this paper will analyze the fraud exception of the exclusion principle, the principle of independence and to investigate the fraud exception on the basis of the principle of limiting on fraud exception and preclude the application of the principle of the boundary. At the same time, with doctrine and jurisprudence of the letters of credit fraud exception system, letters of credit fraud judicial relief issues, we will examine the letter of credit fraud in China's legislative and judicial issues.Finally, the nature of the letters of credit analysis, the application standards of fraud exception and the principle of independence and their own exception, by case analysis, settled in China's judicial and legislative practice, give out the author's recommendations.