As part of our ongoing internal training and knowledge-sharing series, the lawyers and associates at THE LAM LAW recently came together for an in-depth discussion on:

👉 “𝑇ℎ𝑒 𝐼𝑛𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑐𝑒 𝑜𝑓 𝐿𝑒𝑡𝑡𝑒𝑟𝑠 𝑜𝑓 𝐶𝑟𝑒𝑑𝑖𝑡 𝑡ℎ𝑟𝑜𝑢𝑔ℎ 𝐶𝑎𝑠𝑒 𝐿𝑎𝑤 𝑁𝑜. 13/2017/𝐴𝐿”

The session focused on the following key topics:

📌 Overview of Letters of Credit (L/Cs) and their role in payment and credit transactions.
📌 The independence principle of L/Cs under UCP 600 – an L/C is, by its nature, a transaction independent of the underlying sale contract or other contracts forming the basis of the L/C. Banks deal with transactions based on documents, rather than on the goods, services, or performance to which the documents relate.
📌 Case Law No. 13/2017/AL and the Court’s application of the independence principle where an international sale of goods contract is cancelled. Under this case law, the cancellation of the underlying contract does not invalidate the payment obligation under the L/C.
📌 Practical significance of Case Law No. 13/2017/AL, including:

Affirming the independence of the L/C from the underlying contract;
Recognizing the applicability of international commercial practices where the parties agree that the L/C is to be governed by such practices;
Addressing a “legal gap” in judicial practice during the 2015–2024 period; and Providing guidance on the application of provisional emergency measures in L/C-related disputes.

📌 The 2024 Law on Credit Institutions and its implementing regulations, with updates on relevant legal developments affecting L/C transactions in practice.

💡 The independence of an L/C is not merely a legal principle; it is also a fundamental basis for the effective operation of documentary credit as a payment mechanism. A proper understanding of this principle is particularly important when advising clients, negotiating contracts, handling disputes, or assessing the potential application of provisional emergency measures in L/C-related matters.

🌱 At THE LAM LAW, we place strong emphasis on connecting legal knowledge with practical legal practice. Through our internal training sessions, our team has the opportunity to explore complex legal issues, exchange practical insights and experiences, and continuously enhance the quality of our legal advice and dispute resolution services for clients.

📸 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬 𝐚𝐧𝐝 𝐦𝐚𝐭𝐞𝐫𝐢𝐚𝐥𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐢𝐧𝐭𝐞𝐫𝐧𝐚𝐥 𝐭𝐫𝐚𝐢𝐧𝐢𝐧𝐠 𝐬𝐞𝐬𝐬𝐢𝐨𝐧 𝐛𝐞𝐥𝐨𝐰 👇

If you have any legal questions or require legal advice, please do not hesitate to contact THE LAM LAW LLC.

THE LAM LAW LLC
🏢 26/5 Nguyen Binh Khiem Street, Tan Dinh Ward, Ho Chi Minh City.
📞Tel: +84 (0)28 710 58 222 – 6288 3798 – Hotline: +84 (0) 973 097 777
✉ Email: info@thelamlawllc.com