In a global trade transaction seller would ship monster cables from Port of Oakland to Bangkok,Thailand under an irrevocable letter of credit.The Thai buyer's bank issued the letter of credit with the instruction that the monster cables be placed aboard the George Mason on November 25,2013.The loading brokers loaded the monster cables on board the ship on November 26,2013 at 0100 hours (i.e.1 am).On the manifest the broker wrote placed on board November 25,2013.The confirming bank refuses to pay due to the fraud.Is the confirming bank obligated to pay to beneficiary or holder of the letter of credit.

Question

Quizplus · Accepted Answer

The confirming bank is obligated to pay to the beneficiary or holder of the letter of credit because the discrepancy between the manifest and the actual date of loading is not material. The letter of credit instructed that the goods be placed aboard the George Mason on November 25, 2013, and the goods were loaded on November 26, 2013 at 0100 hours. This is a minor discrepancy that does not affect the validity of the letter of credit.

In a Global Trade Transaction Seller Would Ship Monster Cables