Law 5110 Study Guide - Quiz Guide: Contract
Document Summary
Incorporation of standard terms: problems of incorporation, the seller"s duties in terms of transport obligations under c. i. f. The seller"s duties in relation to documents. Today: letters of credit and the idea of payment. The bank"s basic duty to examine documents on their face for a complying presentation. A letter of credit is a document from a bank, guaranteeing that a seller will receive payment in full as long as certain delivery conditions have been met. Most letters of credit are governed by rules promulgated by icc under uniform customs and practise for documentary credits (ucp). The banks" responsibilities when documents are tendered for payment. The contract between seller and buyer will, in the payment clause, state that a letter of credit is to be employed. Due to the difficulties in moving money, the issuing bank will use another bank, called the confirming bank, normally in the country of the seller.
