What are the rights and responsibilities of the account party in a letter of credit transaction?

What will be an ideal response?

The account party's rights and obligations are based on two contracts: the underlying contract with the beneficiary (usually the seller) and the contract with the issuing bank relating to the letter of credit. Ordinary contract law determines the account party's rights under the first contract. International practice limits the account party's rights under the second contract. The main limitation on an account party's rights under the contract with the issuing bank is the doctrine of privity. That is, because the account party is in privity (i.e., in a contractual relationship) only with the issuing bank, it can look only to the issuing bank for performance. In other words, it has no right to bring an action against the advising or confirming banks based on their contract with the issuing bank.