Hardhat Machine Company sold goods to Irish Eyes Company of Northern Ireland.Big Bank issued a letter of credit on behalf of Irish Eyes and the letter was given to Hardhat.The documents required by the letter of credit are presented to the bank for payment while the goods are still in transit.Is Hardhat entitled to be paid?

Question

Quizplus · Accepted Answer

The letter of credit is a promise by the bank to pay when certain documents are presented, so if Hardhat has presented the required documents, they are entitled to be paid. The other options state that payment is not due until after certain conditions are met, which is not relevant in this scenario.

Hardhat Machine Company Sold Goods to Irish Eyes Company of Northern