CASE 11.1 DISHONORING LETTER OF CREDIT Summary * The buyer: JFTC (a Chinese company) Merchandise: 1000 metric tons fertilizers . Method of Payment: L/C Import's Bank: BC (Bank of China), purchase price of $1,2 million The seller: VATC ( in Texas) VATC refused to reduce the price Export's Bank: TCB (Texas Commerce Bank) * Condition: After VATC divivery and present the requisite documents to BC in accordance with UCP 500. } Fact - After shipping goods to JFTC, VATC presented the documets to TCB. - There are discrepacies between the documets and LC but TCB still sent them to BC. - BC contact JFTC about acceptance and JFTC refused to waive. - BC returned the documents to TCB. - VATC was not paid for the shipment