Examination of Documents in Irrevocable Documentary Credit in Accordance with the Unified Principles and Usages of Documentary Credit

Abstract

This article aims to examine the documents in the irrevocable documentary credit according to the unified principles and uses of the documentary credit, as the documents, by virtue of their vitality, left trade outside the scope of one country to move towards globalization, which was necessitated by the necessity of dealing between countries. Several factors contributed to the growth of internal and external trade, which is unimaginable, at least from a financial point of view. Where each of the two parties to the commercial process performs its obligations at the same time, it was better to find a way that would be able to provide guarantees for two people who are far apart in the place. From them to implement their commitment without fear of non-fulfillment of the other party, and for these reasons and regarding documents was invented documentary credit technology. The documents are very important for the bank, as it must check and comply with the terms of the credit opening contract, before paying the credit value to the seller. On the other hand, he is responsible to the seller if he rejects documents that are valid and in accordance with the terms of the letter of credit. Where the importance of this study comes from the importance of the documentary credit and the seriousness of the document examination process, as the bank bears responsibility for the error in examining the documents and bears the payment of those affected. In the absence of a legislative regulation on documentary credit, the study attempts to define general principles agreed upon in examining documents, and to be guided by the national judiciary with the rules of unified customs and foreign judiciary, and to determine the responsibility of banks for violating the rules of examining documents and the responsibility of the beneficiary for committing fraud when submitting documents.