Question
Presentation of documents must be made by exporters within the validity of the letter of credit (L/C) to the Issuing Bank. Using illustrations, explain whether
Presentation of documents must be made by exporters within the validity of the letter of credit (L/C) to the Issuing Bank. Using illustrations, explain whether the presentation of L/C made is in order in the following cases:
(i) Foyer Trading Company (Foyer), which is located in Birmingham, England supplies premium food services, cutlery, and other equipment to restaurants and hotels around the world. One of Foyer's foreign customer, Tiara Inc . (Tiara) in Alabama, United States recently made orders from Foyer. The L/C issued by United Bunker Bank stipulated the expiration date of L/C on 31 January 2021 at the counter of the Advising Bank. BSSC Bank in London then notified and advised Foyer of the receipts of L/C from Tiara.
On 31 January 2021, Standard Ladder Bank in London received documents from Foyer and was instructed to present the documents on behalf of Foyer to United Bunker Bank. United Bunker Bank received the documents on 4 February 2021. (6 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started