____ promises to pay the beneficiary if they buyer fails to pay as agreed.

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A standby letter of credit (L/C) is a written undertaking issued by a bank to the beneficiary, promising to pay a sum of money if the buyer fails to fulfill its obligations. It acts as a secondary payment method in case the buyer defaults on their payment obligations. This type of L/C is commonly used in international trade transactions as a way to secure payment. Option B, a transferable L/C, would not be useful in this situation as it only allows the beneficiary to transfer the credit to another party. Option C, an assignment of proceeds, also would not be suitable as it simply assigns the right to receive payment to a third party, without providing any additional security for the beneficiary.

____ Promises to Pay the Beneficiary If They Buyer Fails