宁波大学答题纸
（20 14 —20 15 学年第二学期）
课号：012A06R01 课程名称：国际结算改卷教师：贺翔
学号：126150121 姓名：卓婷婷得分：
The Case of L/C
1. Case:
A foreign importing company signed a contrast with Chinese exporting company to purchase 500 tons of chemical fertilizer. The contrast requested that the letter of credit should be issued by Jan 30st 1994, and the goods should be shipped before Feb 5th.
In Jan 20th, the buyer sent a credit, and its expiry date is Feb 10th. Due to some difficulties of shipping in time for the seller, so it asked the buyer to put the shipping date off to Feb 17th and the valid time of credit lasts to Feb 20, finally the seller agreed. Neither of them confirmed opening bank.
Eventually, after getting goods loaded, the seller applied opening bank for negotiation to pay. Unfortunately it was refused.
2. Solution and Personal thought:
Although L/C is supposed to be written according to business contrast, it becomes legally independent after issuing. And opening bank only accepts clause restraint of initial credit but not business contrast.
In this case, the buyer and the seller achieved an agreement of credit modification without confirming the bank or getting its permission. So the bank has the right to refuse the payment. As for the seller, to make things right, it can ask the buyer to confirm the bank to modify the extension of L/C. Or it can directly ask the buyer to perform the payment based on revised contrast.
As we know, there exists a triangle relationship between applicant, beneficiary and opening bank. L/C. Three parties should be clear with their own rights and obligations, and be aware of what the role each is playing in international payment.
It’s obvious that modification and extension of L/C can be risky. When making any of them, both the seller and the buyer should be cautious. Even their business contrast is revised, the independent L/C should also be modified.。