Article

Factual Summary: Following its examination of the documents within seven banking days, Issuer refused the documents based on three discrepancies. Negotiating Bank subsequently attempted to cure the documents based on the Issuer's referral. Issuer refused the re-presentation, however, since representation occurred after the expiry date of the credit. Negotiating Bank sued Issuer for wrongful dishonor. The trial court rejected the claim.


Legal Analysis:

1. Choice of Law: Since both parties quoted UCP500 to support their claim during the trial, the court applied UCP500.

2. Expiry, Re-presentation: When a credit expires after refusal and before re-presentation, the issuer is not obligated.

[JS/ec]

* JIN Saibo is partner of Tongshang Law Firm, assisted by FENG Jing and SONG Wei.

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