A Comparative Review of Separation Description in Commercial Documents with Independent Principle in the Letters of Credit

Commercial documents in opposition to civil documents whose credit is dependent on the validity of legal relation have principally an independent existence from the transactions and basic relations and are dependent on theirselves. On this basis, the credit and commercial documents values are separate from the basic relations that are the cause of their creation. The separation character of commercial documents is applicable on the separation of legal relation causing the document issuance from the legal relations resulting from the document issuance. The effect of separation of commercial documents is the immunity of these documents from the objection relating to the nullity, invalidity, recession of legal action against the holder of commercial document. The letter of credits as the same of commercial documents are an independent negotiable documents from the basic agreements or other agreements that are the basis of issuing the letter of credit. In these cases, the issuing bank with withdrawal of invoking to objections against the main debtor is responsible for the payment of money against the beneficiary. The present article with distinction of the separation character and independent principle of letter of credit seek to analyze their exceptions by considering their similarities and differences and to review the effect process of objections on each of them.