| The letter of credit card dispute case of Liu Xu electric Co.,Ltd in Wenzhou and The BOC in Wenzhou city lasted for eight years. Eventually, although Liuxu company won, Wenzhou branch took full responsibility for the consequences of the lost documents. The case is time-consuming, evidence-obtaining is difficult. Particularly,both parties did not discover the missing documents as early as possible. After the documents missing,the way of dealing is unsuitable,both parties did not prevent risk and both shifting responsibility. Therefore,the case cause considerably avoidable loss to the parties. The case reminds the main parties again that letter of credit is a conditional promise of payment. It is very important all kind of parties documents must be accordance. Consequently, the only condition to fulfill payment obligations of the issuing bank is receiving the conformable documents. However,during handing down process, the situation which missing documents happens occasionally. The cause of loss is also varied.Some is caused by the beneficiary’s fault.The other is caused by a nominated bank.Some is caused by the Courier company.It arise a series of disputes. How to prevent lost documents is very important. Because it involves the Issuing bank to fulfill its responsibility of payment,and how to safeguard beneficiary interest, how to handle the delivery formality of the applicant and so on. These problems make the case more complicated in the process. The case also brings reflection and inspiration for all the parties in the documentary credit operation. On the basis of theoretical and empirical,Chinese scholars should specific rules on how to effectively prevent loss of documents and risk prevention, in order to make the parties protect their own maximum interests within the limits prescribed by law. |
