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Ahmad from Kuala Lumpur, agreed to buy from Thomas, 1,000 tons of strawberries FOB London. The contract stipulated for payment by irrevocable letter of credit

Ahmad from Kuala Lumpur, agreed to buy from Thomas, 1,000 tons of strawberries FOB London. The contract stipulated for payment by irrevocable letter of credit at Bank Raya Berhad in Kuala Lumpur on presentation of shipping documents and called for shipment in February/March. Bank Raya informed Thomas that the credit was opened on 30 January. Ahmad contacted Thomas to say that he wanted his local representative to inspect the strawberries before shipment, but Thomas refused to allow the representative to do so. Bank Raya paid on presentation of the shipping documents. On arrival of the vessel, all the strawberries were found damaged due to severe storms during the voyage. The shipment date was actually 10 February and not 2 February as stated in the bill of lading, but Ahmad knew nothing of this.

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