International Finance and Law Assignment Example | Topics and Well Written Essays - 750 words

International Finance and Law - Assignment Example A close analysis of these two descriptions of the same product provides two different products. In the first document, it is evident that the traders are dealing with steel ingots, while in the second document; we cannot deduce which products the traders are dealing with. The only thing we are sure of, as a bank is that they are dealing with ingots. I would not honor the Letter of Credit, and as such, would not make any subsequent payments towards the document. This is because the document speaks of a product that is completely different from the one in the contract of sale. Consequently, the bank would be liable for honoring a Letter of Credit that has such form of discrepancies, and as such, would be liable to pay any amount of liability caused by the damages incurred from this contract. Furthermore, it would be difficult for the bank to trace the money paid out to SS, if at a future date the traders realized the discrepancies in the two contracts and demand to stop the contract, especially if at all he is a fraudulent person. Honoring the contract also gives him legal rights to decline liability to the contract, and he may choose not to send the products at all, or send a different product, ingots instead of 51 steel ingots to the buyer (Bamford, 2011) By refusing to honor this Letter of Credit, I would have to ask both parties to the contract to review the details of their contract. I would demand that they make changes to the contract and rectify the discrepancies before the bank can release any payment upon the order made. For instance, I would send a letter to MM advising him of the difference in description of the goods between the Contract of sale and the Letter of Credit. This means that the goods that the letter of credi demands payment upon are not the same ones discussed in the contract of sale. Therefore, he needs to clarify which goods he is paying for, and what is the acceptable market price of these goods. It might also