According to the independence principle, the credit is separate from and independent
of the underlying contract of sale or any other transaction. A bank which operates a credit is
in no way concerned with or bound by such contract, even if any reference whatsoever to it is
included in the credit18. It follows, that if the seller presents the required documents, the bank
must pay regardless of disputes between the seller and the buyer in the underlying sale
transaction and/or the buyer’s financial inability to reimburse the bank for letter of credit
payments and charges19. Even in case the delivered goods do not conform to the underlying
contract, the buyer cannot request a court to enjoin the bank from paying20.The letter of credit
transaction is thus a paper transaction.