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Documentary credit is a vital point of international trade transactions. Every day, a great many firms enter into sale contracts with one other and agree on payment method by documentary credit.This book gives historical information about international trade and documentary credit. The reasons of why documentary credit is very popular in international trade will be shown. The contractual relationship between the parties to the documentary credit will be analysed. The problem of discrepant documents and the bank s liability under discrepancy of documents will be explained.