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  • Q: What Is The Doctrine of Independence (DI) ? A: Under This Principle, Banks Assume No Liability or Responsibility For: The Form

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    Luap
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    The Doctrine of Independence (DI) principle means that banks assume no liability or responsibility for documents presented under letters of credit or their contents. The only exception is for fraud, where the beneficiary knowingly presents documents to a confirming bank containing material misrepresentations intended to draw on the credit.

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    Doctrine of Independence definition

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    DI

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    The Doctrine of Independence (DI) principle means that banks assume no liability or responsibility for documents presented under letters of credit or their contents. The only exception is for fraud, where the beneficiary knowingly presents documents to a confirming bank containing material misrepresentations intended to draw on the credit.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    11 views1 page

    Q: What Is The Doctrine of Independence (DI) ? A: Under This Principle, Banks Assume No Liability or Responsibility For: The Form

    Uploaded by

    Luap
    The Doctrine of Independence (DI) principle means that banks assume no liability or responsibility for documents presented under letters of credit or their contents. The only exception is for fraud, where the beneficiary knowingly presents documents to a confirming bank containing material misrepresentations intended to draw on the credit.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Q: What is the Doctrine of Independence (DI)?

    A: Under this principle, banks assume no liability or responsibility for: the form,
    sufficiency, accuracy, genuineness, falsification or legal effect of any documents, or for the
    general and/or particular conditions stipulated in the documents or superimposed thereon,
    nor do they assume any liability or responsibility for the description, quantity, weight,
    quality, condition, packing, delivery, value or existence of the goods represented by any
    documents, or for the good faith or acts and/or omissions, solvency, performance or
    standing of the consignor, the carriers, or the insurers of the goods, or any other person
    whomsoever. (Article 15, UCP)

    Q: What is the exception to the independence principle?


    A: Fraud Exception Principle
    This exists when the beneficiary, for the purpose of drawing on the credit, fraudulently
    presents to the confirming bank, documents that contain, expressly or by implication,
    material representations of fact that to his knowledge are untrue.

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