Commercial Law: Advising on the Breach of Obligation to Honor Payment of Letter of Credit

Commercial Law

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Advise S on whether the confirming bank is in breach of its obligation to honour the payment
of the letter of credit....................................................................................................................4
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
Commercial laws are those laws that have been formed in order to makes establishment
of business organization possible. These laws make governing of business in more organized and
effective manner. Also commercial laws helps in guiding working of organization which makes
rules and regulations formed for achieving of goals and objectives in more organized manner.
Also these laws makes focus to be developed over process existing within a country.
Commercials laws also known as business laws and is been studied within contract law or
employment laws. Contract laws are those laws that help in forming of agreement by making
them legal contract under the law. Scope of both contract and commercial laws are wider in
nature. Things covered in this file are based over sales of goods act and Uniform Customs &
Practice for Documentary Credits. Also ICFI contract is been covered within it.
MAIN BODY
Case study: In this case on 30th November 2019 30,000 tonnes of olive oil has been
brought by B form, Son C.I.F. (Cost, Insurance and Freight)terms. The contract holds relevant
terns as per sales contract which included olive oil,Origin: Greece, Moisture: Max 0.05%,
Payment: by irrevocable letter of credit and Shipment is done as per bill of lading dated between
20thApril and 10thMay 2019. The quantity of oil was 30000 tonnes and law applied is present
contract law governed under English law. It is subject to the jurisdiction of the High Court in
London and on 30th April 2019 it has been confirmed that S has sent irrevocable letter of credit.
Further the letter has been incorporated as per UCP(Uniform Customs & Practice for
Documentary Credits)600 which provides over tenders and a full set of bills of lading made out
to the order of B. In this commercial invoice for 30000 tonnes of olive oil within minimum 5%
and a certificate indicating that the goods were of Greek origin. The policy of insurance and
shipment which is between 15th April and 15th May 2019 the cargo was shipped aboard over
nominated vessel. Since the shipment has been mastered and bill has been issued over landing
and B was indicated as a consignee. Since the bill of Landing was on 15th May 2019 and has
confirmation of received from bank through S. Then certificate of origin indicating that good
were of Greek origin made commercial landing bill formed. In this certificate of origin and