Applicable Law to Relationships in International Letters of Credit

Document Type : Research Paper

Authors

1 associate professor in faculty of Law, University of Tehran

2 Phd Student in Private Law in University of Tehran

Abstract

Applicant, beneficiary, issuing bank and advising bank (in most cases) are the four parties that have the mutual rights and obligations in the letter of credit. In many cases, the letter of credit is also confirmed by another bank (the confirming bank). International letters of credit always have a foreign element and in spite of the existence of "Uniform Customs and Practice for Documentary Credits (UCP)", in many cases it is necessary to determine applicable law to these relationships. Accordingly, in this paper applicable law to relationships in international letters of credit will be studied in four categories by a descriptive-analytical method: 1-Relationship between issuing bank and applicant, 2- Issuing bank and advising bank relationship with beneficiary, 3- Relationship between issuing bank and advising bank, 4- Relationship between confirming bank and other parties of the letter of credit. The results show that in each of the aforementioned relationships, the applicable law is the law of issuing bank or advising bank's country or the country where the center of gravity of the contract is situated.

Keywords


  1. الف) فارسی

    1. بنا نیاسری، ماشاءالله (1395). حقوق اعتبارات اسنادی (تجاری و تضمینی)، ج1، تهران: شهر دانش.
    2. باقری، محمدرضا؛ جمالی، جعفر؛ خادمان، محمود (1397). «حقوق بانک‎ها در مطالبۀ مابه‌التفاوت نرخ ارز در اعتبارات اسنادی»، فصلنامۀتحقیقاتحقوقخصوصیوکیفری، دوره 14، ش36، ص 176-147.
    3. تجاره، ابوذر (1396). راهنمای جامع کاربردی اعتبارات اسنادی و روش‌های پرداخت بازرگانی بین‌الملل، نهران: حامینار.
    4. جنیدی، لعیا (1394). «مقایسۀ اعتبار اسنادی و اسناد براتی»،مجلۀ حقوق بانکی، دورۀ 1، ش 5، ص 46-13.
    5. ---------- (1393). تقریرات درس حقوق تجارت بین‎الملل، تهران: دانشکدۀ حقوق و علوم سیاسی دانشگاه تهران.
    6. خادم رضوی، قاسم؛ عصاریان، سپیده (1392). «اعتبارات اسنادی، سازوکار و محدودیت‎های آن»، ماهنامۀاکتشافوتولیدنفتوگاز، ش 108، ص 37-23.
    7. شیروی، عبدالحسین (1393). حقوق تجارت بین‌الملل، ویرایش دوم، تهران: سمت.
    8. وحیدی، غلامحسین (1394). شناخت تعهد ارزی واردکنندگان کالا و خدمات در حقوق ایران، تهران: شهر دانش.

     

    ب) خارجی

    1. Buckley, Ross. & Xiang, Gao, (2003). "A Comparative Analysis of the Standard of Fraud Required under the Fraud Rule in Letter of Credit Law", Duke Journal of Comparative & International Law, Vol. 13, No. 2, pp. 293-336.
    2. Belohlávek, Alexander (2011). Rome Convention - Rome I Regulation, New York: Juris Publishing.
    3. Briggs, Adrian (2013). the Conflict of Laws, Oxford: OUP.
    4. Brilmayer, Lea, (2015). "Hard Cases, Single Factor Theories", University of Illinois Law Review, Vol. 215, No. 5, pp. 1969-1998.
    5. Burnett, Robin (2009). Law of International Business, New South Wales: Federation Press.
    6. Cahill, Dermot & Power, Vincent, (2011). European Law, Oxford: OUP.
    7. Chitty, Joseph (2012). Chitty on Contracts, Vol. 1, Edit: H. G. Beale, London: Sweet & Maxwell.
    8. Clarke, Malcolm, & Hooley, Richard, (2017). Commercial Law: Text, Cases, and Materials, Oxford: OUP.
    9. Cook, Thomas (2014). Mastering the Business of Global Trade, Cleveland: CRC Press.
    10. Cordero-Moss, Giuditta (2014). International Commercial Contracts: Applicable Sources and Enforceability, Cambridge: Cambridge University Press.
    11. Cornelio, Sumangil (2014). Keys to Understanding Documentary Letters of Credit, North Carolina: LULU Press.
    12. Cranston, Ross & Avgouleas, Emilios (2018). Principles of Banking Law, Oxford: OUP.
    13. Dann, Diane Furman (1983). "Confirming Bank Liability in Letter of Credit Transactions: Whose Bank Is It Anyway", Fordham Law Review, Vol .51, Issue 6, pp.1219-1253.
    14. DiMatteo, Larry A, (2016). International Business Law and the Legal Environment: A Transactional Approach, Oxfordshire: Taylor & Francis.
    15. Gao, Xiang (2002). The Fraud Rule in the Law of Letters of Credit: A Comparative Study, The Hague: Kluwer Law International.
    16. Grath, Anders (2011). the Handbook of International Trade and Finance, London: Kogan Page Publishers.
    17. Gwynne, Richard (2018). "The Governing Laws of a Letter of Credit: Taurus V Somo Revisited", Lioyd's Maritime and Commercial Law Quarterly, No. 4, pp. 450-455.
    18. Horn, Norbert (2011). German Banking Law and Practice in International Perspective, Berlin: Walter de Gruyter.
    19. Horowitz, Deborah, (2010). Letters of Credit and Demand Guarantees: Defences to Payment, Oxford: OUP
    20. Jones, Stephen, (2018). Trade and Receivables Finance, Berlin: Springer Science & Business.
    21. Karl, Andreas (2003). Letters of Credit and The Doctrine of Strict Compliance, Sinsheim: Thesis in Sinsheim University.
    22. Kaynak, Erdener & Seyoum, Belay, (2014). Export-Import Theory Practice and Procedures, London: Routledge.
    23. King, Richard (2003). Gutteridge and Megrah's Law of Bankers' Commercial Credits, London: Routledge.
    24. Kono, Toshiyuki (2018). Transnational Commercial and Consumer Law, Berlin: Springer Science & Business.
    25. Lee, Eun Sup (2013). Management of International Trade, Berlin: Springer Science & Business.
    26. Markstein, Anthea (2010). "The Law Governing Letters of Credit", Auckland University Law Review, Vol. 7, pp. 138-163.
    27. Martin, Denis (2014). International Transactions in Goods, Oxford: OUP.
    28. Mugasha, agasha, (2003). The Law of Letters of Credit and Bank Guarantees, Sydney: The Federation Press Sydney.
    29. Poole, Jill (2014). Textbook on Contract Law, Oxford: OUP.
    30. Reinhard, Langerich (2009). Documentary credits in practice, 2nd edition, Copenhagen: Nordea.
    31. Rhee, Chase (2012). Principles of International Trade (Import-Export), Bloomington: Author House.
    32. Rodrigo, Thanuja (2011). "UCP 500 to 600: A Forward Movement", Murdoch University Law Review, Vol. 18, pp. 2-21.
    33. Rogerson, Pippa (2013). Collier's Conflict of Laws, Cambridge: Cambridge University Press.
    34. Richard, Ta, (2009). Professional Business Law Essays, Boston: Cengage learning.
    35. Ruiqiao, Zhang, (2009). A Comparative Study of the Fraud Exception Rule of Letters of Credit, Montreal: Thesis in Faculty of Law McGill University.
    36. Schaffer, Richard, (2014). International Business Law, Boston: Cengage Leaning.
    37. Sigman, Harry, (2009). Cross-border Security over Receivables, Munich: Sellier European Law Publishers.
    38. Singer, Joseph William (2014). "Property Law Conflicts", Washburn Law Journal, Vol. 54, No. 1, pp.129-160.
    39. Stone, Peter, (2013) International Trade Law, London: Routledge.
    40. Todd, Paul (2013). Bills of Lading and Bankers' Documentary Credits, Oxfordshire: Taylor & Francis.
    41. Warne, David and Elliott, Nicholas, (2005). Banking Litigation, London: Sweet & Maxwell.
    42. Wooler, Garth (2018). Unconscionable Conduct in Commercial Transactions: Global Perspectives and Applications, Cambridge: Cambridge Scholars Publishing.
    43. Wunnicke, Brooke & Turner, Paul (2000). Standby and Commercial Letters of Credit, New York: Aspen Publishers.