Confusion and difficulties surrounding the fraud rule in letters of credit: an English perspective
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It has been established law for a long time that, in limited circumstances, fraud could provide a valid ground to withhold payment in letters of credit transactions. This article examines the fraud rule which was created to prevent unscrupulous fraudsters from benefiting from the system.Whilst it is recognised that there is a need to preserve the integrity of the system and maintain the certainty of payment, the way in which English law restricts the fraud exception is excessive to the extent of defeating the objective of the exception. In this article, some suggestions are made for the relaxation of the fraud exception.
Journal of International Maritime Law
Copyright [year] LawText Publications & The Author. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
International Trade Law