Terms of the sales contract must be reflected in the letter of credit,if not the buyer must clear all discrepancies upon examination of the letter of credit.

Question

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The terms of the sales contract should be accurately reflected in the letter of credit, but if there are discrepancies, it is typically the responsibility of the seller to ensure the letter of credit matches the contract terms before shipment. The buyer is not obligated to clear discrepancies; instead, the seller must resolve them to ensure payment.

Terms of the Sales Contract Must Be Reflected in the Letter