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It therefore leaves open the position of the beneficiary in case of a fraudulent b/l in which the beneficiary had no part.
This triggered b/ls with so called Maersk clauses in which the carrier excludes liability for delivery of the cargo against a forged b/l.Under US law, this does not constitute a fraud, because it is not material enough.?These questions touch upon the function and value of a b/l.There exists case law in the US, saying for establishing fraud, there should be amaterial false representation.An example once given by a well-known speaker during a seminar on LC law, was a b/l stating to have on board 100 bicycles, whereas the seller/shipper knew the ship carried 99 bicycles.
Under various jurisdictions, an LOI may be held unenforceable on the charterer and the P&I Clubs will usually not give cover for unjustly issued clean b/ls.