Fact Pattern 9-1
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.

-Refer to Fact Pattern 9-1.To obtain payment, Lapland must comply with all of the requirements of the letter of credit

Question

Fact Pattern 9-1
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.

-Refer to Fact Pattern 9-1.To obtain payment, Lapland must comply with all of the requirements of the letter of credit

Quizplus · Accepted Answer

To obtain payment under a letter of credit, the beneficiary must comply with all the requirements of the letter strictly. Any non-compliance, even if trivial or technical, can result in a rejection of payment.

Fact Pattern 9-1 First State Bank Issues a Letter of Credit in Favor