The Bank's liability of Examining documents under letter of credit "An analytical comparative study"
Publication Type
Original research

This research deals with the responsibility of the bank in examining the documents the Letter of Credit (LC) includes due to the importance and seriousness of this commitment to the bank.  In the Letter of Credit, the bank does not deal with goods but, rather, it deals with documents the seller (beneficiary) submits; therefore, if such documents were in accordance with the terms of credit, then the beneficiary has fulfilled their commitment.  Based on that, the Bank shall fulfill to the beneficiary the value of the credit.

However, if the documents were not in accordance with the terms of credit, then the bank shall refuse to pay the value of the credit to the beneficiary and shall not implement the contract of credit.  Therefore, and to the effects of matching or not matching the credit documents and the damages to the parties of Letter of Credit, the bank must examine and audit the documents based on specific criteria.

This research analyzes the position of the International Chamber of Commerce’s (ICC) Uniform Customs and Practices (UCP) for Documentary Credit UCP600 of 2007 with respect to the research topic.  The position of UAE law towards the research topic will be addressed as well.  There will be also reference to some of judicial practices related to the research topic.

مجلة جامعة الشارقة للعلوم القانونية
جامعة الشارقة
Publisher Country
United Arab Emirates
Publication Type
Both (Printed and Online)