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The Principle of Strict Compliance in Relation to Letters of Credit

Question 33

Multiple Choice

The principle of strict compliance in relation to letters of credit in Canada provides that


A) the seller must present documents that strictly comply with the terms of the credit before he or she is entitled to receive payment.
B) the purchaser must strictly comply with the terms of the credit before he or she is allowed to obtain the goods from the shipper.
C) the buyer's bank is not allowed to pay anyone until it receives independent notification that the goods are received by the buyer.
D) the shipper is not permitted to give the goods to anyone but those identified in the letter of credit.
E) the seller's bank can demand strict compliance with the bank's policies when deciding whether to pay the seller.

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