The contractual balance of the parties to the documentary credit in accordance with the provisions of Libyan law and international custom

Abstract

Documentary letters of credit have great importance in the field of international commercial transactions, since it is considered one of the most important means of international guarantee and payment for the parties of  the trade exchange process through international transactions, whereby  it has become the most common and used tool in international trad by dealers sellers, buyers and contractor. Thus, it has contributed to facilitating the flow of goods and products globally, which It has affected the economies of the countries in terms of linking a banking network, which contributes to establishing credit between the international seller and buyer. Therefore, Legislation generally and the Libyan Commercial Activity Law No. 23 of 2010, in particular, began to regulate what is called documentary credit to protect its parties and shown their obligations towards each other. However, the role of the bank comes to conclude  the contract for both the international buyer and seller, where creates intertwined obligations on each of the credit parties related to the original contract, and this contract naturally is  being completely independent from the bank documentary credit.