SuperFit Inc is a Toronto- based distributor of weight and exercise equipment from around the world. One of its suppliers is Leko Inc, a manufacturer of high- end barbells and dumbbells, based in Tampere, Finland. Leko is paid for its sales to SuperFit by letter of credit. According to the autonomy principle,
A) if the goods do not conform to the contract, SuperFit can prevent payment under the letter of credit only if the bank autonomously confirms that the goods do not conform.
B) even if SuperFit believes that the goods do not conform to the contract, it cannot prevent payment under the letter of credit.
C) if the goods do not conform to the contract, SuperFit can prevent payment under the letter of credit.
D) if the goods do not conform to the contract, SuperFit can prevent payment under the letter of credit only if the non- confomity has nothing to do with the documents required to be presented under the letter of credit.
E) none of the above.
Correct Answer:
Verified
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