An issuer in a letter of credit transaction has an obligation to assure that the goods sold by the seller in fact conform to the contract.

Question

Quizplus · Accepted Answer

In a letter of credit transaction, the issuer's obligation is to pay the beneficiary (seller) upon presentation of documents that comply with the terms of the letter of credit, not to assure that the goods conform to the contract between the seller and buyer.

An Issuer in a Letter of Credit Transaction Has an Obligation