Question

In: Operations Management

A buyer entered into a contract to purchase 100 boxes of apples from a seller.

International Law

A buyer entered into a contract to purchase 100 boxes of apples from a seller. The apples arrived at the buyer’s warehouse and after inspection, the buyer found half the apples to be rotten and not of merchantable quality. The buyer calls his bank to stop payment to the seller under a letter of credit that has previously been opened by the buyer to pay the seller for the apples. Discuss if the bank is allowed to follow the buyer’s instructions to stop payment to the seller under the principles governing the letter of credit payment. Your answer must include the relevant Articles in the UCP 600 and the

relevant case laws.                                                                           

Solutions

Expert Solution

Yes, the bank is allowed to follow the buyer’s instructions to stop payment to the seller under the principles governing the letter of credit payment but only when the buyer will show the apples that were rotten to the bank. If the apples were found rotten after checking by the bank then the advising bank will send the letter to the issuing bank and will inform that the buyer is stopping the payment to the seller. Now, bank of the seller will inform about the due payment of apples.

keosha answered 2 years ago
Next > < Previous

Related Solutions

Buyer and Seller entered into a contract governed by the CISG for Seller to deliver a...
Buyer and Seller entered into a contract governed by the CISG for Seller to deliver a sophisticated computer to Buyer by January 1. Seller was late in delivering themachine, so Buyer wired Seller on January 2: “Anxious to take delivery of the computer. Hope that it arrives by February1.”Seller delivers the computer on February 5, but Buyer refused to accept it and declares that the contract is avoided because Seller failed to hand over the computer before the February 1...
Buyer and Seller entered into a written agreement for Buyer to purchase real property, which property included a home, from Seller.
 Buyer and Seller entered into a written agreement for Buyer to purchase real property, which property included a home, from Seller. Under the terms of the purchase agreement, the risk of loss "shall remain with Seller until delivery of title." The purchase agreement was entered into on May 15 and called for closing on June 1, though the agreement did not say that time was of the essence. Seller chose this date for closing, in part, because that was the...
a) Buyer A has entered into a contract for the sale of goods with Seller B....
a) Buyer A has entered into a contract for the sale of goods with Seller B. Seller B has delivered nonconforming goods but has promised to cure the defects. After three months of waiting, Seller B has not cured the defect. What remedy does Buyer A have?   b) Buyer A has entered into a contract for the sale of goods with Seller B. Buyer A has breached the contract while the goods are in transit. What remedy does Seller B...
a)   Buyer A has entered into a contract for the sale of goods with Seller B....
a)   Buyer A has entered into a contract for the sale of goods with Seller B. The contract provides that Seller B will deliver the goods on May 1, 2010. On May 1, 2010, Seller B informs A that it will not be able to perform the contract. Assume Buyer A was going to pay $3,000 for the goods under the contract with Seller B. Seller C will sell Buyer A the goods for $4,000 plus a transportation cost of...
Buyer A has entered into a contract for the sale of goods with Seller B.
Buyer A has entered into a contract for the sale of goods with Seller B. The contract provides that Seller B will deliver the goods on May 1, 2010. On February 1, 2010, Seller B informs A that it will not be able to perform the contract. What has occurred and what remedies are available to A in this case?
Seller and buyer enter into a contract for buyer to purchase 1,000 pot holders for $1,000....
Seller and buyer enter into a contract for buyer to purchase 1,000 pot holders for $1,000. Assume for purposes of this question the contract is in writing and otherwise meets all requirements of the Statute of Frauds. Buyer breaches the contract and seller resells to a local company for $900. Discuss the remedies that are available to the seller
A Buyer (Best Buy) and Seller (Dell Computers) of computers entered into a contract whereby the...
A Buyer (Best Buy) and Seller (Dell Computers) of computers entered into a contract whereby the Seller promised to deliver 5,000 laptop computers of a certain model, at $500 each, by February 10, 2016, to the Buyer’s warehouse, in time for a big promotional sale which the Buyer was planning for the President’s Day holiday. The Seller was only able to deliver 3,000 units, due to a labor strike. To “cover” the other 2,000 units, and make sure the Buyer...
A German seller and a U.S. buyer form a contract. The buyer breaches. The seller sues...
A German seller and a U.S. buyer form a contract. The buyer breaches. The seller sues in a German court and wins damages, but the buyer’s assets are in the United States. If a U.S. court enforces the judgment, it will be because of Question 33 options: the doctrine of sovereign immunity. the act of state doctrine. the principle of comity. None of the above.
Is a contract for the sale of real estate assignable by the buyer if it provides for credit from the seller to the buyer?
Corey sold his property to Greer, who assigned the contract right to Bob. The original contract of sale provided for an extension of credit by Corey to Greer and did not require a total cash payment at the time of closing. Is a contract for the sale of real estate assignable by the buyer if it provides for credit from the seller to the buyer? Explain.
Expatiate on the duties of the seller to the buyer in a contract for sale of...
Expatiate on the duties of the seller to the buyer in a contract for sale of goods.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT