Letters of credit fraud and its impact on the bank's commitment - a comparative study
Journal of college of Law for Legal and Political Sciences,
2013, Volume 2, Issue 4, Pages 192-254
AbstractDocumentary credit plays an important role in foreign trade (International), especially in the scope of the implementation of international trade contracts as a foolproof way to settle the payments resulting from international trade and believes the conflicting interests of the seller and the buyer.
As the international trade takes place between the seller and buyer are in two different countries, so every party wants to be assured of their rights. Valbaúa wants to make sure of obtaining the price of the goods, and at the same time, the buyer wants to ensure receiving the goods that have been paid for.
So intervened banks as a key player in international trade operations to regulate this process by letters of credit, and what was the system of credit deal with both ends of the business process through documents, has managed some people commit fraud and fraud in documentary credits damaged large importers. Because the assets and the standard international norms of documentary credits did not address the issue of fraud as a restriction on the principle of the independence of the Bank's commitment, hence the reason for our choice of the research topic.
This research aims to shed light on the nature of cheating in letters of credit, and the statement of the objective conditions and formalities required for the Zuma significance of this fraud and arranged for its legal, as well as a statement appearances Applied to cheat in the context of the documentary credit under the jurisprudence and the Iraqi judiciary and Comparative Law, and clarify the impact of fraud on the bank's commitment to rely documentary. This research presents finally highlighted problems raised on this subject, in addition to the methods of protection against fraud in the letters of credit.
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