P&K Insights: The threshold of proving fraud for deterring payment under a Letter of Credit

Recent cases and practical tips

Letters of credit and standby letters of credit are essential instruments used in international trade and project financing and have been said to be the “lifeblood of international commerce” (Lord Justice Kerr in RD Harbottle (Mercantile) Ltd v National Westminster Bank Ltd [1978] QB 146). Given their nature, there are very limited grounds on which the payment obligations in these instruments can be resisted.

In this article, Mino Han and Jonathan Tang share two developments in these areas, exploring findings in recent cases.