n SA Mercantile Law Journal = SA Tydskrif vir Handelsreg - The documentary nature of demand guarantees and the doctrine of strict compliance (Part 2)
|Article Title||The documentary nature of demand guarantees and the doctrine of strict compliance (Part 2)|
|© Publisher:||Juta Law Publishing|
|Journal||SA Mercantile Law Journal = SA Tydskrif vir Handelsreg|
|Publication Date||Jan 2009|
|Pages||470 - 485|
The UCP 600, as well as their predecessors, the UCP 500, contain a number of provisions that aim to relax the requirements of strict conformity. Therefore, by incorporating one of these versions of the UCP into their contract, either expressly or tacitly, the applicant (or the principal in the case of a demand guarantee) and the beneficiary agree to a certain relaxation of the required degree of compliance regarding the documents.
Although the UCP 500 were replaced with the UCP 600 on 1 July 2007, there are still letters of credit in operation that are subject to the UCP 500, and some banks are also still issuing letters of credit subject to the UCP 500. Therefore, a discussion of the positions under both the UCP 500 and the UCP 600 is necessary.
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