Maurice O'Meara Co. v. National Park Bank of New York involved a letter of credit for a shipment of newsprint. The bank was concerned that the shipment was not as represented in the documents. In finding in favor of the seller's assignee, the court:

Question

Quizplus · Accepted Answer

The case of Maurice O'Meara Co. v. National Park Bank of New York is a landmark case in the realm of letter of credit law. The court emphasized the independence principle, stating that banks are obligated to pay under a letter of credit regardless of any disputes between the buyer and seller, as long as the documents are in compliance with the terms of the letter of credit. Therefore, the bank's concerns about the shipment were irrelevant to its duty to pay under the letter of credit. The court did not address the issue of inspection or strict compliance with the terms of the letter of credit.