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| Topic: |
Business
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| Number of pages / Number of words: |
19 / 5068 |
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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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This undertaking, if issued, is known as a letter of credit or a documentary credit.[7]
The buyer, as applicant, will inform the bank of the documentary requirements that he wishes to have inserted into the letter of credit.[8] These requirements are essentially designed to ensure that the seller submits documentation that records his compliance with its obligations in terms of the underlying sales agreement...
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