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letter of credit

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Title: letter of credit
Essay Details
Subject: Business
Date: December 8, 2007
Length: 19 / 5068
No of views: 0
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Essay text:

This may prove to be inconvenient and expensive.[3] Similarly, if the buyer makes payment for the goods prior to receiving delivery, and if the seller fails to make delivery or delivers nonconforming goods, then the buyer is left facing a similar prospect of pursuing the seller in a foreign jurisdiction...
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The parties establish a letter of credit,[4] which enables the seller to obtain payment from a bank within his jurisdiction. The buyer establishes the letter of credit in such a manner, that payment is promised on presentation of certain documents, the contents of which confirm that the goods being delivered to the buyer are goods that conform to the terms and conditions of the underlying sales agreement...
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