Provisional Attachment on the Documentary Letters of Credit: A

Comparative Study Saudi and Emirati Law

Hani Mounes Awad 1, Abdullah Mushkus Almutairi 2,

Asmaa Saad Elhadedy 3, & Mohamed Mounes Awad 4

https://doi.org/10.62271/pjc.16.4.907.926

Abstract

The study aims to study the provisional attachment of documentary letters of credit to prevent the beneficiary from liquidating the value of the credit as the beneficiary used fraudulent methods without which he would not have been able to obtain the value of the credit. The study follows the descriptive analytical comparative approach. It will discuss the legislative and judicial efforts related to the provisional attachment of documentary letters of credit. This will lead us to the comparative approach to comparing what is stated in Emirati and Saudi law and the judgments. The study concludes several findings, including that documentary letters of credit are an unquestionable means of success in international trade operations, especially since they discuss the problems of geographical distance between the seller and the buyer. However, fraudulent behaviors by sellers (beneficiaries of the documentary letters of credit) disrupt the dominance of documentary letters of credit as the most important means of payment in international trade transactions. The study concludes with several recommendations, namely: the necessity of adopting the Uniform Customs and Practice (UCP) for Documentary Letters of Credit as a rule to eliminate instances of fraud in its transactions.

Keywords: Provisional attachment, documentary letters of credit, uniform rules and customs for documentary letters of credit, Independence of the Underlying Relationship, fraud.