Infinity Products of Canada sells ornaments to an Italian direct mail retailer.The two companies enter into an agreement whereby the payment for the ornaments will be released to Infinity Products when the Italian retailer confirms receipt of the shipment.What agreement did the two companies entire into?

Question

Quizplus · Accepted Answer

The two companies entered into a letter of credit agreement, which is a payment agreement where the buyer's bank guarantees payment to the seller upon confirmation of receipt of the shipment.

Infinity Products of Canada Sells Ornaments to an Italian Direct