Several Legal Issues in Foreign-Related Financial Dispute Cases

Letter of credit (L/C) is a major settlement and payment method in international economic and trade exchanges. In the L/C business, the parties concerned deal with the documents, not the goods, services or other acts related to the documents. That is in the L/C business, as long as the documents submitted by the parties meet the requirements of L/C, the issuing bank should be responsible for payment or acceptance. According to Uniform Customs and Practice for Documentary Letters of Credit (UCP), which has been generally accepted by banks around the world and adopted in terms of L/C, the submission, transmission, review of documents and the bank’s refusal to pay for “payment” due to the inconsistency of the documents with L/C should strictly abide by the corresponding rules. Therefore, these rules on the handling of L/C documents in Uniform Customs and Practice for Documentary Credits have become an important legal basis for resolving L/C disputes and determining related responsibilities.