The fraud rule in the law of letters of credit

Letter of Credit is one of the widely used international payment instrument. Although the letter of credit is essentially an international instrument with an age-old pedigree, number of problems stil exist. The most crucial problem for the contractor side of letter of credit is the fraud rule or the fraud exception. ICC rules are the main guide for the European Union. These rules, UCP 400, UCP 500 and UCP 600, doesn?t lean upon law but guides the sides of letter of credits. Nevertheless UNCITRAL Convention formed a law framework and defined fraud rule. The United States of America has the world?s largest laws and obligations about the fraud rule and devoted fifth section of the country?s commercial law to the documentary credits. Current study took these three frameworks in to consideration and compare the fraud rule explanations of these frameworks with the definition of fraud rule in Turkish Law which is also named as a ?bad fade?. Documentary credits, rules, exceptions, sides, responsibilities and all related issues are investigated in the thesis