International commercial letters of credit : balancing the rights of buyers and sellers in insolvency

Discusses the mechanisms by which international commercial letters of credit attempt to balance the rights of buyers and sellers in the event of insolvency. Reviews key features of international sales contracts, the information contained in letters of credit, the extent to which these constitute a payment guarantee and the problems arising from the current operation of the fraud exception, including its role in balancing the interests of the parties. Considers the reasons why the priority interests granted to third parties following seller insolvency are inappropriate and why the separate contracts negotiated by each party outside the primary contract should be seen as subordinate to the primary parties' claims against one another.