The effect of non-commitment condition on banks' exemption in documentary documents

Subject Areas : Journal of Law and Politics

mohammad reza bagheri ¹ , jafar jamali ² , ali zare ³

1 - PhD Student in Private Law, Department of Law, , UAE Branch Islamic Azad University
2 - Assistant Professor, Department of Law, Electronic branch, Islamic Azad University, Tehran, Iran , Responsible Author([e-mail])
3 - Assistant Professor, Department of Private Law, College of Law, Theology and Political Science, Science and Research Branch, Islamic Azad University, Tehran, Iran ,

Received: 2022-06-20 Accepted : 2022-08-16 Published : 2022-09-23

Keywords: non-liability condition, imposed conditions, exemption from liability, Keywords: Letter of credit, banks', serious fault,

Abstract :

Abstract:Given the importance and application of this condition in banking contracts and its impact on the realization of liability or exemption of banks, it is necessary to study the concept, effects and scope and the possibility or impossibility of invoking this condition. The question is, is such a binding condition known due to the bank's trust? How to combine it with the security duties and inherent commitment of banks to the customer's interest is also an ambiguity about which no comprehensive and independent research has been done, and at the same time, the answer is effective in fulfilling the responsibility or exemption of banks and customer rights. The ambiguity of this condition and its imposition can be criticized and pave the way for numerous lawsuits.The research method is descriptive-analytical and in terms of data collection, it is library.Considering the basis of civil liability of banks, in any case where the mentioned condition is in conflict with the trustworthiness and inherent obligation of the banks to review the documents and pay the credit, there should be no hesitation in not paying attention to this condition and deviating from it. It can be a document for breach or non-observance of the obligation to the bank and exemption from liability.Keywords: Letter of credit, non-liability condition, imposed conditions, serious fault, banks' exemption from liability