Examination Of The Letter Of Credit And The Fraud Exception Principle

ABSTRACT The study was carried out on the examination of the letter of credit and the fi'aud exception principle. In this case the research expounded the documentary credits and its effectiveness in relation to the prescribed laws and the provisions of the conventions against the documentary credits. A letter of credit is a financial device developed by merchants as a convenient and relatively safe mode of dealing with sales of goods to satisfy the seemingly irreconcilable interests of the seller, who refi.1ses to part with his goods before he is paid, and a buyer, who wants to have control of…