The fraud exception in international documentary credit transactions seen from an English and German perspective

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1999

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University of Cape Town

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This inquiry will investigate the extent to which fraudulent conduct affects the rules and principles of international documentary credit transactions particularly the issuing or confirming bank's legal position of vis a vis the beneficiary. The inquiry will be taken from the perspective of English and German law, with the main focus on that very important English case, United City Merchants v Royal Bank of Canada1. The legal • position of German law will be compared whether the German solution differs from that found by the House of Lords in United City Merchants v Royal Bank of Canada. Before examining this specific problem in the field of documentary credits, a short survey of the rules, principles and mechanism of documentary credits in international transaction will first be given.
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