(1) Failure of the buyer seasonably to furnish an agreed letter of credit is a breach of the contract for sale.
(2) 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.
(3) 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, where 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 which does business in the seller’s financial market. [1961 c.726 §72.3250]
Section: Previous 72.3180 72.3190 72.3200 72.3210 72.3220 72.3230 72.3240 72.3250 72.3260 72.3270 72.3280 72.4005 72.4010 72.4020 72.4030 NextLast modified: August 7, 2008