Conflict and Explanation About the Use of Negotiable Instrument Law of China for the Documentary Letter of Credit Draft

Abstract

The documentary letter of credit draft, first of all, depends on compulsory procedure of bill of exchange, legal status of sides during negotiating bank registration, unconditional payment and endorsement with signature and stamp; it also depends on other questions and conflicts, occurred with the use of UCP600. The applicable of the documentary letter of credit draft suffered from negotiable instrument law in China and the international convention on the law. Through the analysis of bill legal interpretation rules and international law practice, the documentary letter of credit draft not only matches the bill of exchange, but also plays the role of bill of exchange with unconditional payment. This provides the logic basis for the documentary letter of credit draft to apply negotiable instrument law in China and forward the legal interpretation to resolve the conflict.