A revocable letter of credit is an agreement to honor a draft or other demand for payment when specified conditions are met and cannot be changed unless both the buyer and the seller agree to the change.

Question

Quizplus · Accepted Answer

A revocable letter of credit can be changed or canceled by the issuing bank without the consent of the beneficiary, unlike an irrevocable letter of credit which requires agreement from both parties for any changes.

A Revocable Letter of Credit Is an Agreement to Honor