Letter Of Credit A Few Research Articles

Letter of Credit is an important settlement and financing tool for international Trade. It is also a legacy of merchants and bankers created from their longtime business practice and collective wisdom. A famous British Judge Kerr called it'The Blood of International Trade'. With the development of trade practice, more and more special terms occur, which is much more complex than the common ones. Some of them have already changed the risk taking between applicant and beneficiary without their awareness. The research and study before, however, is relatively superficial and mainly focus on the distinguishing and prevention of Special terms in documentary credit with little theoretical analysis. Therefore, this thesis endeavors to make some theoretical breakthroughs by deep research into the legal nature of four special items in documentary credit on the basis of relevant legal principles, international trade customs and practice.This thesis mainly consists of the following four parts:The first part is General Introduction of LC, which briefly introduces the definition, characteristic, three legal principles as well as fraud of LC.The second part is General Introduction of Special Items in LC. Firstly the definition of special item is introduced. Then point out the difference between soft clause and special item. And thirdly, the reasons for special items, both their reasonableness and seamy side.The third part is Study on Four Special Items in LC. This is the core of the whole thesis, which stipulates four kinds of special items including Non-documentary Condition, Non-operative Condition, Contradict Condition and Document Acquirement not in Beneficiary's Control Condition with a focus on their definition, category, as well as the legal nature.The last part is the General Conclusions, which was a summary of the whole analysis.