The banking business, is the backbone of the economic life at all countries of world. There is no doubt of its importance while comparing with all branches of law, it serves the individuals and organizations to increase the capital and provide the financial consulting services. The institutional banking business is considered a legal and commercial guarantee for banks alone, because, it is the descriptive framework for the bank, and it is considered an institution at one side, and as a merchant at the other side. It is created from integral and organized banking operations in accordance with an integral institutional structure. The Egyptian legislator defined the banking institution, as every facility that normally accepts deposits that are paid on demand or after a deadline and not exceeding one year, whereas this facility may be faced by problems in dealing or with its clients, and the most important problem, is cheating and apparent abuse in transactions, as one of the most important fraudulent methods. Hence we see the most prominent general principles at law, is fraud, which damages everything, and law doesn’t grant a protection to the person who has acted in bad faith through these transactions, and nobody can benefit from fraud and manipulation in his dealings, and with regard to banking transactions, the principle of the independence of all obligations, is to protect all parties, but if bad faith occurs, the effect of this, extends to damage these liabilities, so we focus on this topic, to identify the conditions that must be fulfilled in banking contracts, the scope of study, so that we can state, we are in the process of discussing cheating and it impacts, whereas it is considered one of the fraud methods, then we conclude the outcomes from the legal aspect in the independence of these contracts, especially, the guarantee letter and documentary credit.