Competition, Economic Efficiency, Consumer, Objectives of Competition Law, Iranian Law

Letter of credit(LC')due to its special characteristics, is one of the most prevalent methods for payment in international transactions. By establishing the Uniform Customs and Practice for Documentary Credits (since) 1933, in order to unification of the rules governing letters of credit, International Chamber of Commerce) ICC) has tried to clarify this method of payment. ICC has standardized issuing of the documents related to letter of credit, so as to declining problems which are come across with engaged parties due to this method of payment. However, despite these efforts, still numerous ambiguities surround this method of payment, especially banks are challenging with several problems in connection with the documents presented by the beneficiaries. This shows that prevailing rules on the principle of strict compliance of documents are not clear enough. In order to enhance the letters of credit’s efficiency, this paper will try to review the contrast interpretations regarding the concept of the principle and provide solutions for the above problems. This study includes all engaged parties in)LC)’s operations and specially will examine Doctrine of Strict Compliance in Commercial Invoices.