In Question 9, would it make any difference if Schwartzs bank had confirmed the letter of credit
Question:
In Question 9, would it make any difference if Schwartz’s bank had confirmed the letter of credit and paid the promissory note before Rousseau learned of the supposedly defective shipment?
Data from in question 9
Rousseau et Fils has signed a contract to buy 10,000 “new coffee percolators in the manufacturer’s original packaging, with standard manufacturer’s warranty,” from Schwartz, GmBH. Schwartz agrees to ship the percolators CIF, and Rousseau agrees to make payment by means of an irrevocable letter of credit. Rousseau contacts Thermidor Bank, which issues a letter of credit promising to honor a promissory note payable to Schwartz when it is accompanied by an invoice and a clean, on board bill of lading for “10,000 new coffee percolators in the manufacturer’s original packaging, with standard manufacturer’s warranty.” Rousseau learns from Weiss, a competitor of Schwartz, that even though Schwartz had obtained actual bills identifying the goods as “10,000 new coffee percolators in the manufacturer’s original packaging, with standard manufacturer’s warranty,” the percolators were actually used and inoperable. Is there anything that Rousseau can do?
Step by Step Answer:
International Business Law Text Cases And Readings
ISBN: 9780273768616
6th International Edition
Authors: Ray A. August, Don Mayer, Michael Bixby