Import operations and e commerce

Their primary obligation is to pay against receipt of conforming documents. It means that a conforming document is that document that is deemed to be in line with the description of goods and contain all the requirements upon the receipt of goods and products, (Dole Jr). Article 7 of the UCP 600 subsection c requires that an issuing bank undertakes to reimburse a nominated bank that has honoured or agreed a negotiated a complying presentation and forwarded the documents that the issuing bank. An issuing bank’s undertaking to repay a dominated bank is independent on the issuing bank's commitment to the beneficiary. From the case stated in question 1, it indicates that the beneficiary bank did not make a substantial agreement by discrepancies that arose with the information that was given by the issuing bank, (Wood).

Held and conclusion From the above discussion and analysis of article 7 of UCP 600, it is a requirement that what is undertaken by the issuing bank when it is reimbursing the nominated bank is not dependent with what is done by the beneficiary bank. Therefore from this analysis, it means that the issuing beneficiary bank is entitled to claim the number of documents from the issuing bank because according to the UCP 600(c) article 7, it is a requirement that the bank needs to check the validity of the documentation before acceptance. A transition after acceptance of 1st December 2017 means that this cannot be revoked showing that the issuing bank has accepted all the documentation with regard to the goods. Therefore it is entitled to claim the amount from the issuing bank because upon acceptance makes the transaction valid, and it amounts to a contractual obligation.

A contract is valid when all the parties have agreed on the terms that govern the contract. • It needs to be prepared from the name of the one applying for and it must contain the name of the applicant. Exception lies in subsection of article 38 • It should have the same currency value • It should not be given any signatory Subsection b A bank known as nominated bank when operating under nomination, it is necessary to provide a confirming bank so that a commercial documents for transaction like invoice will be accepted. Subsection c Goods that have to be described by the commercial invoice should relate to what will appear on the document known as letter of credit.     When giving a description of the goods that are being shipped, it must contain all the necessary requirements as stated in the LC.

That is the description of goods needs to correspond to what will be provided as an accompanying document to prove the existence and receipt of goods. Since in case three, it is an agreement that takes place between the nominated bank and the beneficiary, the same law will also apply with regard to the description of goods. LC should give a description of goods, and it should also correlate which what is described in the invoice. This shows that when the good to be shipped are not mentioned as spare parts, it shows that what is stated in the letter of credit should also state the list of goods that will be shipped and to be contained in the invoice, (Bergami).