A letter-of-credit agreement between Rural Feed Corporation and Soybean Farms,Inc.,requires Rural Feed's bank to pay Soybean Farms on receipt of invoices.This letter of credit is
A)a formal contract.
B)no contract.
C)an implied contract.
D)a quasi contract.

Question

Quizplus · Accepted Answer

A letter-of-credit agreement is a formal contract between parties, with specific terms and conditions outlined. In this case, the agreement requires Rural Feed's bank to pay Soybean Farms upon receipt of invoices, which is a clear and specific requirement.

A Letter-Of-Credit Agreement Between Rural Feed Corporation and Soybean Farms,Inc