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Examines the criteria used to determine the law relating to disputes over letters of credit, where several parties are involved and each is situated in a different jurisdiction with no choice of law specified. With letters of credit, there are usually at least four parties involved, namely the buyer-applicant, the bank issuing the letter of credit, the seller beneficiary, and the correspondent bank confirming and advising or negotiating the letter of credit.
These parties may often be situated in different jurisdictions, having different laws both in substance and procedure. Furthermore, when incorporated, the letters of credit are governed by the Uniform Customs and Practice for documentary credits (UCP). While the UCP is a set of rules and practices on the use of letters of credit, this particular codification does not offer solutions in the absence of a choice of law to the problem of conflict of laws over disputes involving letters of credit.
The book contains a particularly useful documents section, which includes the UCC rules and samples of letters of credit.