1. Describe the nature, and explain the advantages. of documentary credit for international sales. 2. Explain the procedures of a letter of credit, then advise the legal status of the parties under the following situations: a. A buyer would like to inspect the goods shipped under an international sale contract before he pays under the documentary credit; b. The Position of the buyer under a documentary collection with sight Documents against Payments compared to an irrevocable letter of credit with a 101'.) days sight drawn on his bank. 3. S agreed to sell to B two hundred containers of frozen meat. to be shipped on a lCIF basis on 'The lColander. the price payable by way of a confirmed irrevocable letter of credit. Upon shipment of the goods, 5 tendered the requisite documents to Bank X. the conrming bank in his country. Bank X communicated acceptance of the documents tendered. whereupon the message was relayed to B. B however said that he was recently informed by reliable sources that the ship was not equipped for transporting frozen meat. He instructed Bank Y, the issuing bank. to withhold payment until the arrival of the vessel at the port of destination. 5 was unhappy with the deferment of payment. Upon arrival, B discovered that the whole consignment of meat was spoiled. Advise S. 4. C, an Australian. is currently negotiating to sell to D. an American. a consignment of frozen beef. The shipment is proposed to be on 'CIF' basis. The contract of affreightment will be evidenced by a bill of fading. C and D are currently considering the issue of payment. a. Briefly explain the effect of the following terms of payment: i. By 'Documents against Payment ii.By Bi) days Documents against Acceptance iii. By '30 days after Date of Bill of Lading' b. Why would you especially recommend an irrevocable and confirmed letter of credit as a method of payment to the seller\"? 5. Compare 'documentary credit' with 'documentary collection' basis. What are the functions and responsibilities of bankers under either arrangement