On the one hand, the principle “fraud unravels all” is one of the
most important principles in the civil law, because of the law
doesn’t protect the person who act in bad faith. On the other hand,
the independence principle is the most important p
rinciple in the
letter of credit. Which that principle means: the bank’s obligation to
pay is separated from the underlying contract’s performance, and
the bank must honor the credit if the beneficiary presents the
compliant bills of documents, as well as the beneficiary is protected
from the risks of non-payment.
So, what is the influence of the fraud on the independence principle.
That is what we are going to discover.
