On October 1, 2021, Garcia Exporters, a manufacturer in India, made a contract to sell 200,000 tie-dyed beach chairs to Lesh Imports, a NY corporation, for "$300,000(US), CIF New York, shipment, direct or indirect, to arrive on or before February 1, 2022." The contract required Lesh Imports to obtain a Letter of Credit "issued or confirmed by a reputable N.Y. commercial bank." Lesh intended to resell the beach chairs to customers in the northeastern United States in the beginning of March 2022.

On October 10, 2021, Hart National Bank (NY) issued a Letter of Credit for the benefit of Garcia in the amount of $300,000(US), to expire on November 30, 2021. The Letter of Credit required presentment of a Bill of Lading showing a shipment "to arrive NY on or before February 1, 2022."

On October 17, 2021, Garcia delivered the 200,000 beach chairs to Weir Shipping Lines in India for shipment to NY on the container ship "Of Fools." The Bill of Lading, dated October 17, 2021, stated that the ship was "to arrive NY on or before February 1, 2021."

On November 1, 2021, before the ship "Of Fools" entered the Gulf of Aden (at the Southern tip of the Arabian Peninsula), a large container ship (the "Never Taken") became stuck in the Suez Canal. The Never Taken remains stuck in the Canal to today, resulting in a tremendous backlog of ships behind the Canal. The backup will certainly delay the ship "Of Fools" from arriving in NY before March 1, 2022.

On November 5, 2021, 5 days after the Never Taken blocked the Canal, Garcia Exports, knowing that the ship will not arrive in NY on schedule, nevertheless presented the Bill of Lading and all the other documents required by the Letter of Credit to Hart Bank. Hart immediately notified its customer, Lesh Imports, that a conforming presentment was made under the Letter of Credit."

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

1. Will Lesh be able to stop payment on the Letter of Credit before Hart pays it?
2. If Lesh is unable to stop payment on the Letter of Credit, and Hart Bank pays Garcia, will Lesh be able to sue Garcia under the contract for a refund if the goods arrive late, i.e., after February 1, 2022?