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Letters of credit are often in what went wrong?
Sources of information:未知Release time:2017-02-24 11:40 Reading times:I would like to comment
Letters of credit are often in what went wrong?
A) reimburse the bank fee question
In letter of credit transactions, banks play an important role. Starting from the issuing banks must take notice, examination,
D/and a series of responsibilities, to provide buyers and sellers with bank credit.When the Bank provides these services, who should be
This cost of reimbursing Bank? in a number of international trade disputes, buyers and sellers dispute, it should be up to the
Pay. But I think, the bank charges shall be borne by the buyer. From three angles, the author of the following views:
(1) said. Open a letter of credit because the seller was not satisfied with the original intent of the buyer has the ability and willingness to pay
The issuing by the Bank as a way to eliminate any possibility of buyer fails to perform the payment. Bank letter of credit provided to beneficiaries
Bank credit, committed to beneficiaries is available by payment against credit documents. So the buyer to apply for issuing banks may
To be seen as acting as a seller's agent, buyer seller's request or authorize and arrange a payment way, from
Basically, is paid by buyer for the expansion of trade of a cost of doing business.
(2) consideration of said. Buyer's issuing bank charge is for the buyer to pay the seller responsibility consideration. By
That consideration, which means the cost of interests of the parties in order to obtain a contract, it is a common law concept. Under the common law rules
, Only on or about the time of the contract, is a legally valid contract, without consideration or about the contract is that you don't get
Guaranteed by law. So, about also called for prices or treats, and party to acceptconditions for an Act, coupled with the
Debts, give up a right or suffered some loss of the other party for compensation.
The issuing bank and the beneficiary relationship through letters of credit, letters of credit in favor of credit issued by exporters, the
Quality as an offer. Beneficiaries of the issuing document surfaces by bank check their payment cannot be paid nothing,
Buyer's deposit enough said on the grounds of the credit is no longer responsible. Bank Act was made, must be given to the corresponding filling
Claims, known as "about". Analysis to the above, was buyer interest to the beneficiary under the letter of credit opening application
Another contract this contract, then the previous margin money paid by the buyerof the contract also became a beneficiary and
The consideration of the contract between the issuing bank. About third party commitment, is recognized in many countries, the United States and United Kingdom
Trust strongly supports this view.
(3) the contract said. According to international practice, normally, of contracts for the international sale of goods to the buyer, according to the sale
Payment by the letter of credit in the same agreement, draw on its application forbank letter of credit in favor of seller to settle
The purchase price. Sell when credit terms are stipulated in the contract, the buyerhas the timing, type and manner stipulated in the contract open to sellers
Obligations of the beneficiaries of letters of credit. Buyer as payer of the contract,and the applicant, according to the requirements of the contract to the
Bank submitted contracts, apply for issuing 1. Issuing applications constitute a unilateral declaration of the applicant, banks
Before deciding whether to accept, also taking into account its own interests, to investigate the credibility of the applicant, to determine whether or not required to pay
All or part of the deposit, within the limits accepted the request of the applicant. Ifthe Bank accepts the buyer's request, the parties
On the establishment of a credit contract, the issuing application becomes a binding contract between the parties, the parties rights
Basis of accounting. Application for issuing the issuing bank proxy and payment agent contract with the issuing bank. According to the
A contract, the issuing bank is paying agents, and the applicant is the payer. In General, the applicant will have to deliver to the issuing bank
Deposit of not less than 20% the issuing amount, providing mortgage, pledge orguarantee and financial institutions, in the Bill of lading before opening
Enough of the issuing bank to the issuing amount of money; the Bill of lading shall be paid to the issuing bank immediately after the funds paid by the issuing bank
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