| dc.description.abstract | Over the centuries, the banks and trade practitioners have developed
practices and techniques for use in letters of credit in international trade
finance. Those practices and were subsequently standardized by the
Uniform Customs and Practice for Documentary Credit 600 (UCP 600).
However, many aspects of Letters of Credit operation including fraud
are not codified under the UCP. Diversified nature of National Laws in
different countries can be source of confusion and problem when
applying such rules. English law vigorously upholds the principle of
autonomy in relation to letter of credit. Only exception to this is the
‘Fraud Rule’ which has been subject to various interpretations. This
paper identifies applicable laws surrounding fraud exception while
examining issues associated with it. Comparisons are made to
applicable jurisdictions with particular emphasis on the provisions of
the UCP 600. It is further aimed to identify flaws in existing legal
regimes. Finally, a discussion is made to find possible avenues to
redress any existing shortcomings with recommendations. | en_US |
