tag:blogger.com,1999:blog-820750508945586952.post7039765751909647043..comments2023-04-28T20:45:38.354+08:00Comments on BUSINESS BLOG DOT COM: LC SWIFT Format: Field 43P (Partial Shipment)Unknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-820750508945586952.post-2084766756081070902009-04-19T20:51:00.000+08:002009-04-19T20:51:00.000+08:00There are two separate issues involved here. One, ...There are two separate issues involved here. One, the capability to perform under contract by the seller and the second, the principle of autonomy of the letter of credit.<br /><br />A letter of credit, by virtue of its nature, purpose and function, does not in any way guarantee that the seller will ship the goods or in your case, the correct quantity. If the seller fails to fully ship the goods as ordered by the buyer, the buyer is to take this matter separately free from the involvement of the bank. <br /><br />The disputes arising from the underlying contract will not implicate the banks to any extend unless a court injunction is obtained. <br /><br />The principle of autonomy of letter of credit clearly says that the payment obligation of the banks would only be detached upon proof of fraud. In other words, as long as the documents tendered to the bank are found to be in conformity, the obligation of the bank to make payment to the seller stays intact. <br /><br />The seller is not obligated under the contract of letter of credit to perform his duties as outlined in the sales contract. It is the sales contract that imposes the obligation on the part of the seller to fulfill his obligation. Therefore, the failure of the seller to perform, has nothing to do with contract of payment that is letter of credit.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-820750508945586952.post-53370782290956856182009-04-19T20:10:00.000+08:002009-04-19T20:10:00.000+08:00What happens if cannot ship the full goods within ...What happens if cannot ship the full goods within LC expiry date . For Example LC Value is USD 10,000 but only able to ship goods for 8000 USD in 2 or 3 Parts.Anonymoushttps://www.blogger.com/profile/17850876348568599555noreply@blogger.com