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True North Beer, a Canadian beer manufacturer, ordered a piece of equipment from a supplier in Germany and made arrangements with its bank to issue

True North Beer, a Canadian beer manufacturer, ordered a piece of equipment from a supplier in Germany and made arrangements with its bank to issue a letter of credit to pay for the equipment. If the train carrying the equipment from the factory to the port crashed and the equipment was severely damaged, the principle of autonomy of letters of credit indicates that:

a.

True North Beer can rely on the pre-contractual non-binding letter of intent to avoid payment.

b.

True North Beer must still pay under the letter of credit arrangements.

c.

True North Beer may obtain an injunction from the Canadian court to require the bank to stop payment.

d.

True North Beer can stop payment on the letter of credit since the purchased goods are damaged.

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