Letters of Credit. The Swiss Credit Bank issued a letter of credit in favor of Antex Industries to cover the sale of 92,000 electronic integrated circuits manufactured by Electronic Arrays.
The letter of credit specifi ed that the chips would be transported to Tokyo by ship. Antex shipped the circuits by air.
Payment on the letter of credit was dishonored because the shipment by air did not fulfi ll the precise terms of the letter of credit. Should a court compel payment? Explain.