Ahmad from Kuala Lumpur, agreed to buy from Elaine, 1,000 tons of corn CIF Port Klang. The contract stipulated for payment by irrevocable letter of credit at Bank Raya Berhad in Kuala Lumpur on presentation of shipping document and called for shipment in February/March. Elain had the corn ready to load by 10 March but discovered that no credit has been opened and hence refused to load. The credit in fact was opened on 28 March and although Elaine began to load the corn, loading was not completed until 1 April. Bank Raya Berhad refused to pay against the shipping documents, which included the bill of lading showing a shipment on 1 April.

Can you identified the issues and the rules that can be applied in this situation.