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GEE , an Australian manufacturer of Electrical appliances , Entered into a contract on 15 February ZOOS to Sell 10, 000 pressurised rice - cookers

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GEE , an Australian manufacturer of Electrical appliances , Entered into a contract on 15 February ZOOS to Sell 10, 000 pressurised rice - cookers to Asian Appliances ( Thailand ; Pty LEd "AAT") , a buyer in Bangkok . Delivery of the goods was to be CIF Bangkok during the month of March , but no later than 20 March 2008 . Payment for the goods was to be made by letter of credit incorporating the UCF GOD ( 2007 ) . THE letter of credit was to be issued by LaEm Thong Bank (" LT Bank ") and advised by CEA in Sydney . Drafts were to be drawn on LT Bank . Acceptance of the seller's drafts by LT Bank was to be against" the Usual CIF documents and certificate of origin " . DESPITE its concerns about AAT= financial Situation , LT Bank issued the letter of credit , which was Opened on 25 February. GEE received a letter advising the credit on 27 February* .* The goods were delivered to the carrier on 17 March and loaded on board the ship the following day. While the goods were being loaded , it was discovered that the anti- corrosive coating on many of the rice cookers had begun to chip away , and that a number of the cookers had begun to show signs of rust . When the carrier informed GEC that a claused bill of lading would be issued , the manager of GEC realised that the company would not be able to deliver any replacement cookers before 20 March . HE therefore assured the carrier that everything would be OK and offered to " handsomely reward " the carrier if a clean bill was issued . The carrier agreed to issue a clean , on-board bill of lading , in return for the bribe* Money* CEA CheckEd all the shipping documents carefully , informed GEC that they were acceptable , and paid the monies owing under the letter of credit . The documents were then forwarded to Bangkok , LT Bank informed AAT that the documents had arrived ; and would be held as Security by the bank until payment was received . Ey this stage , LT Bank had become aware that the buyer's financial position was even more precarious than earlier thought . In fact , AAT Was declared bankrupt on the following day . AS a result , LT Bank decided to retain the bill of lading and other documents . The bank also advised CEA that 10 reimbursement or other payments would be made under the credit

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