Hello,

I'm doing a business memo for my LAW 3111 (Law & International Business) class which has to be no more than a page long. The main question I have to answer is "Will Garcia be to stop payment on the Letter of Credit?" Can someone advice me on what things to include on this memo to make it a good one.

Here below is the background to write the memo. Thanks!

On January 3, 2021, Lesh Exporters, a manufacturer in India, made a contract to sell 200,000 beach chairs to Garcia Imports, a NY corporation, for "$300,000(US), CIF New York, shipment on or before March 20, 2021, to arrive on or before June 1, 2021." The contract required Garcia Imports to obtain a Letter of Credit "issued or confirmed by a reputable N.Y. commercial bank." Garcia intended to resell the beach chairs to customers in the northeastern United States in the beginning of summer 2021.

On January 20, 2021, Hart National Bank (NY) issued a Letter of Credit for the benefit of Lesh in the amount of $300,000(US), to expire on March 30, 2021. The Letter of Credit required presentment of a Bill of Lading showing a shipment "to arrive NY on or before June 1, 2021"

On March 17, 2021, Lesh delivered the $200,000 beach chairs to Weir Shipping Lines for shipment to NY on the container ship Ripple. The Bill of Lading, dated March 17, 2021, stated that the Ripple was "to arrive NY on / before May 15, 2021."

On March 23, 2021, while the Ripple was entering the Gulf of Aden (at the Southern tip of the Arabian Peninsula), a large container ship (the "Ever Given") became stuck in the Suez Canal. The Ever Given remained stuck in the Canal, resulting in a tremendous backlog of ships behind the Canal. The backup will certainly delay the Ripple from arriving in NY before June 30, at the earliest.

On March 28, 2021, 5 days after the Ever Given blocked the Canal, Lesh Exports presented the Bill of Lading and all the other documents required by the Letter of Credit to Hart Bank. Hart immediately notified its customer, Garcia Imports, that a conforming presentment was made.

You are an employee of Garcia Imports. Your boss, Mr. Jerome, told you that if the shipment arrives late, Garcia will suffer a catastrophic financial loss. Jerome asked you to prepare one memos for him:

Will Garcia be to stop payment on the Letter of Credit?