and Practice to Documentary Credit
Articles 2, 3, 4, 9 & 16—
consistent view of the courts are that only in two exceptional circumstances an
issuing bank can absolve its responsibility of not honouring the obligation
created by it under a letter of credit—Fraud of which it has knowledge and
special circumstances which warrant an interference by the court.
Apparels (Pvt) Ltd vs Imperial Knitting Industries Ltd and others 53 DLR 350.
Articles 3 & 4—
of credit issued must be independent or autonomous of the underlying contract
of sale of goods or service and the banks concerned with such credit are to
deal in documents and not in goods.
Exchange Bank, Seoul, Korea vs Gemini Garments Limited and others 56 DLR 392.