NAVIGATING GLOBAL TRADE: UNRAVELLING THE DYNAMICS OF LETTERS OF CREDIT AND BILLS OF EXCHANGE

AUTHOR – NAYAN AGRAWAL, STUDENT AT AMITY UNIVERSITY, CHHATTISGARH

BEST CITATION – NAYAN AGRAWAL, NAVIGATING GLOBAL TRADE: UNRAVELLING THE DYNAMICS OF LETTERS OF CREDIT AND BILLS OF EXCHANGE, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (1) OF 2024, PG. 1228-1235, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

In the realm of international trade, letters of credit (LCs) and Bills of exchange (BOEs) play pivotal roles in facilitating smooth transactions between parties across borders. Understanding the dynamics, intricacies, and legal implications of these financial instruments is paramount for businesses engaged in global trade. This research paper delves into the complexities surrounding LCs and BOEs, exploring their historical evolution, functions, advantages, and challenges. Additionally, it analyzes the legal frameworks governing these instruments, examining their roles in mitigating risks and ensuring trust among parties involved in cross-border trade. Through empirical analysis and case studies, this paper aims to provide insights into best practices for utilizing LCs and BOEs effectively, navigating the complexities of international trade transactions, and fostering seamless global commerce.

KEYWORDS: international trade, commerce, bills of exchange, letters of credit, transaction.