THE LEGAL RELATIONS IN DOCUMENTARY LETTER OF CREDIT TRANSACTION

Abstract

In this paper we will analyze the legal relations inherent in the letter of credit transaction, a crucial financial instrument in international 
trade. Letter of credit, regulated primarily by the Uniform Customs and Practice for Documentary Credits (UCP) provide security for both buyers and sellers by ensuring payment upon the presentation of stipulated documents. This research contributes to a deeper understanding of the complex legal relations and the roles of main parties involved, uncluding the buyer, seller, issuing bank and confirming bank, and analyzes their rights and obligations under the UCP.