(a) Failure of the buyer seasonably to furnish an agreed letter of credit is a breach of the contract for sale.
(b) The delivery to seller of a proper letter of credit suspends the buyer's obligation to pay. If the letter of credit is dishonored, the seller may on seasonable notification to the buyer require payment directly from the buyer.
(c) Unless otherwise agreed, the term "letter of credit" or "banker's credit" in a contract for sale means an irrevocable credit issued by a financing agency of good repute and, if the shipment is overseas, of good international repute. The term "confirmed credit" means that the credit must also carry the direct obligation of such an agency that does business in the seller's financial market.
Section: Previous 45.02.316 45.02.317 45.02.318 45.02.319 45.02.320 45.02.321 45.02.322 45.02.323 45.02.324 45.02.325 45.02.326 45.02.327 45.02.328 45.02.350 NextLast modified: November 15, 2016