Can someone double check this that it makes sense and make any corrections I will appreciate.

This is the question I have to answer:

* Will Garcia(the buyer) be to stop payment on the Letter of Credit?*

To: Mr. Jerome

From: Garcia Employee

Date: April 11, 2021

Subject: Letter of Credit Payment

In a CIF contract, a letter of credit is a promise from the bank that the two parties involved will make smooth transactions on time. For the agreement between Garcia Imports and Lesh Exporters the reason for obtaining a letter of credit from Hart National Bank(NY) is to guarantee that the bank is responsible for paying $300,000 under their funds before the expiration date. In this case, Garcia will not be able to stop the payment on the letter of credit because this is a payment method used in international trade to guarantee that the beneficiary in this case Lesh Exporter will be paid.

Once the bank receives the confirming documents, the bank must review the documents presented to prove that the beneficiary performed all the requirements in order for the bank to validate the letter of credit and honor by making the agreed payment even if something happens leading to a shipping delay.

The terms of the letter of credit stated that payment must be initiated by presenting a bill of lading showing shipment, "to arrive NY on or before June 1, 2021". This means that Lesh Exporter obtained the bill of lading as the beach chairs were loaded on the ship and this is the document presented for payment. As a result, the seller has fulfilled the terms of the letter of credit and the bank has an obligation to pay. Thus Garcia cannot stop the letter of credit since the seller has fulfilled the terms of the letter of credit by presenting a bill of lading to the issuing bank.

Under the letter of credit guidelines, even if Garcia will suffer major financial losses, payment cannot be canceled without the consent of the issuing bank and the beneficiary. Due to the fact it was not for the negligence of Lesh Exports to deliver the beach chairs order on time, it was cause that the seller couldn't control. However, only Lesh Exports, the beneficiary,can initiate the cancellation by a written declaration within the validity period of the letter of credit.