The letter of credit is one of the most important payment instruments facilitating international trade. In comparison with other available payment instruments, secure interests of both exporter and importer. The balancing of their interests occurs due to characteristics which are imminent to the letter of credit. The letter of credit is an abstract undertaking of the bank which doesn't rely on the validity of the underlying sales contract. It means that upon the complying presentation of the documents the bank must honor the letter of credit. As to the applicant he enjoys two rights. On the one hand he obtains much more confidence over the due performance of the delivery of goods by the seller due to the bank verifying compliance of documents. On the second hand the letter of credit provides to him the credit which must be reimbursed only after the maturity of the letter of credit. Purpose of this paper to investigate commercial advantages and disadvantages of legal construction.