This 10 page paper examines a case study supplied by the student. A contract is made for the shipment of corned beef from Argentina to the UK, with English lay being applied. The shipment is late, mistakes are made on the letter of credit, the tins are the wrong size and some are damaged on loading. The paper considers the different aspects of this transaction and what, if any, remedies, may be sought. The bibliography cites 7 sources.
Name of Research Paper File: TS14_TEdamgoods.rtf
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The refusal of the bank to accept the documents presented, the terms and conditions that may have been breached, such as the different sized tins and also the late shipment.
There is also the issue of the damaged stock with the lost labels following the accident in Argentina. The first issue is
that of the documentation. Firstly there are slight discrepancies on the description of the beef and claiming payment of the letters of credit. Documentary credit notes may also be
referred to as bankers commercial credits or commercial letters of credit. These are usually issued with the documents making expression to the uniform customs and Practice for Documentary Credits (UCP)
which are issued by the international Chamber of Commerce (Goode, 2000). These documents indicate that the bank is the primary party from which payment is collected on presentation of the
documents and is an assurance of payment. The withholding of payment is complex, but it has to be seen as separate from
the contract, and even if goods are substandard the buyer cannot instruct the withholding of payment if the paper terms have been met. The question here is, have those terms
been met? There is the need to look at the doctrine strict compliance, whilst remembering the bank is concerned not with the facts, but with the document, the UCP
allows for a tolerance unless there is a stipulation that there will be some tolerance, here there is no difference, it is only the specification of 500 gram tins on
the credit note, whilst on the bill of lading says the same total weight in 440 grams, here there is a choice on the part of the bank.