Document background
The Irrevocable Letter of Credit serves as a fundamental trade finance instrument in international commerce, providing payment security to sellers while offering buyers documentary control over the transaction. This document becomes particularly crucial when parties seek a secure payment method in cross-border transactions, especially when dealing with new trading partners or in countries with different legal systems. Under Austrian jurisdiction, the document combines international banking practices (UCP 600) with local legal requirements, including compliance with the Austrian Banking Act (BWG) and relevant EU regulations. The irrevocable nature means that once issued, the letter of credit cannot be amended or cancelled without the agreement of all parties involved, providing enhanced security for international trade transactions.
