Fact Pattern 31-1
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 31-1.To obtain payment,Lapland must comply with all of the requirements of the letter of credit

Question

Fact Pattern 31-1 
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 31-1.To obtain payment,Lapland must comply with all of the requirements of the letter of credit

Quizplus · Accepted Answer

In letter of credit transactions, strict compliance with its terms and conditions is required for the beneficiary to obtain payment. Any deviation from the letter of credit terms may result in a refusal to pay. Therefore, Lapland must comply with all of the requirements of the letter of credit strictly.