The Legal Basis for the Documentary Credit Encountering the Beneficiary of the Credit in the Light of the Unified Convention Bulletin 600
Date
2011
Authors
Muneer Hulaiel
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Abstract
This research aims to know the legal basis for the source of the bank’s commitment letter of credit within the consolidated assets and norms issued by the international chamber of commerce in Paris. The study showed that the legal basis for the bank’s commitment is the underlying contract between the seller and the buyer , and therefore the bank’s role becomes obvious in accepting and pledging to open a credit, based on instructions received from the buyer’s and that the bank becomes binding or obliged in confronting the beneficiary by the value of creditation upon the notification report dependence of the latter. Despite these relations between the parties of a documentary credit, the bank’s commitment to independent contract between the beneficiary and the buyer’s order as well as the bank is committed to the virtual correspondence and documents submitted by the beneficiary and requires commitment to the implementation of the instructions received from the buyer order within the context of accreditation and not to accept the violation of any document and that these documents are provided for. The Bank is committed to transfer the document to the ordering buyer. That is the parties rely to deal with document and do not deal with goods and therefore the bank examines the documents and they transfer it to the ordering buyer.