University of Khartoum

Defences to Payment under Letter Of Credit and Demand Guarantee

Defences to Payment under Letter Of Credit and Demand Guarantee

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Title: Defences to Payment under Letter Of Credit and Demand Guarantee
Author: Khatir, Nahid Emad Eldeen Osman
Abstract: The object of the research is to study the defences to payment under the letter of credit and bank guarantee, and the conditions necessary for their application. Given the importance of letters of credit and bank guarantees international and domestic trade, the research will address those defences both in England and in Sudan. The research adopted the analytical and descriptive approach to identify the problems of the research clearly and precisely. The research arrived at several conclusions. On the one hand, traders rely on documentary credits and bank guarantees as modes of payment to protect themselves against risks that may arise from the underling contract. On the other hand, those two modes of payment may not provide security in all cases where the bank may not be obliged to pay, such as, for instance the documents may not conform the terms of the credit and in the cases of fraud and other cases that have been accepted as defences to payment. In light of the forgoing the research recommended that, when offering the credit, the issuing bank should make sure of the precision and accuracy of the information provided by the applicant. It must also revise and correct the exact terms and conditions of the credit. It is recommended that the issuing and confirming banks apply the exceptional cases where the bank is not obliged to pay under the letter of credit and the demand guarantee correctly in order to maintain the balance between the independence principle of he letters of credit and demand guarantees so that those two modes of payment achieve their intended goal as secure modes of payment.
Description: 107 Pages
URI: http://khartoumspace.uofk.edu/123456789/26682


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