Seller receives a letter of credit from a foreign buyer covering "1,000 standard-sized bed pillows." Seller's export manager completes an invoice for "1,000 bed pillows,size 20 by 26 inches" (this is the internationally accepted standard size for pillows).Which of the following is false?

Question

Quizplus · Accepted Answer

While it is true that the internationally accepted standard size for pillows is 20 by 26 inches, it does not necessarily mean that the goods conform to the contract in other aspects, such as the quality, packaging, or shipping terms. Therefore, the bank may still refuse to accept or pay the draft upon presentation of the invoice if there are discrepancies or inconsistencies with the letter of credit or other documents. Moreover, even if the buyer waives the defect in the invoice, it does not obligate the bank to accept or pay the draft, as the bank's liability is determined by the terms and conditions of the letter of credit.

Seller Receives a Letter of Credit from a Foreign Buyer