General Principles of UCP

General Principles of UCP :

Letters of credit are separate transactions from the sales or other contracts on which they may be based, and banks are in no way involved with or bound by such contracts, even if reference to them is included in the letter of credit.

In letters of credit transactions, all parties deal with documents and not with the underlying contracts to which the documents may relate.

Before payment or acceptance of drafts is effected, banks bear the responsibility for examining the documents to ensure that they appear on their face to be in accordance with the terms and conditions of the letter of credit.

Banks bear no responsibility for: the form or genuineness of documents; for the goods described in the documents or the performance of the seller of the goods.

General Principles of UCP