Description
Letter of credit – failure to administer letters of credit – failure to establish letters of credit.
- A letter of credit, also known as a documentary credit or banker’s commercial credit, is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods (p. 17).
- In the transactions involving documentary credit strict compliance both by the seller with the letter of credit and by the banker with his customer’s instructions is of utmost importance (p. 18).
- Failure to properly administer letters of credit as required by the established custom of trade (p. 19).
- Failure to establish letters of credit (p. 21).
