CRITICAL ANALYSIS OF THE PRINCIPLE OF STRICT COMPLIANCE IN LETTER OF CREDIT OPERATION WITH RELATION TO THE UCP 600
Abstract
One of the fundamental principles governing the Letter of Credit operation is the principle of strict compliance. The paper is based on the understanding of the “Doctrine of Strict Compliance†within the context of UCP 600 in international trade. The objectives of this study are to (i) analysis the current status of principle of strict compliance in letter of credit system; (ii) identifying the implementation of the doctrine in International Trade; (iii) making an outline to develop a relation between the principle of strict compliance and UCP 600; (iv) and concluding the research by answering how the usage of UCP 600 makes soften the principle of strict compliance. The whole study of the paper focuses on how the implementation of UCP 600 softens the doctrine of strict compliance. The paper shall address the very basic characteristics of principle of strict compliance and shall find out how the application of the provisions of UCP 600 changes the characteristics of the doctrine. The outcome of the thesis will bring a proper understanding on how the doctrine of strict compliance has changed and reformed over the year of international trade practices and how UCP 600 re-shaped the basic structure of that doctrine.
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References
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