Shipment made after the latest shipment date indicated in the LC is considered a discrepancy, which is late shipment. In this regards, bank will refuse payment. When bank refuses payment, normally, the issuing bank will notify the buyer whether or not the buyer will accept the rejected documents. If, subsequently the buyer accepts the rejected documents, bank will effect payment. I don’t get the meaning of ‘quit’. If it means cancellation, it is not possible for the buyer to cancel the LC if it is an irrevocable LC. But, if it means ‘reject’, yes the buyer may reject the documents and shipment. When this happens, the bank will return the documents to the seller. The seller has to arrange to dispose the cargo to another party.
Second condition is that in the L/C partial shipment allowed and importer paid one container payment. Is it possible importer quit another container and doesn’t not collect the documents therefore his bank received the second container documents.3- If in L/C partial shipment allowed exporter sends the 1st container and also send documents to his bank is it possible he collect the documents and get this container, other container on transit.
If either party would like to cancel the irrevocable Letter of Credit, he must obtain a consent form the issuing bank, confirming bank (if any) and trading party. The issuing bank, having issued the LC is bound to honour its payment undertaking whether or not the goods are in conformity to the Sales contract.
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