International Business Law1
Memo
Date: 19th April 2020
From: Stella Inc.
Re: Issues relating to the business with Harpo Inc.
The issues to be discussed are as follows:
 If the Harpo Inc. instructs Chase and Fredonia Bank not to honour the Letter of
Credit, how will the Bank Behave?
 Will the fact that Harpo obtaining the letter with Chase as a confirming bank would
provide us with an advantage and are we eligible to get the payment?
 Should Harpo get the refund as the shipment did not arrive on time?
Important Facts:
 As per the terms and the conditions provided in the contract the goods were to be
delivered on or before 11th April 2020 and contained a Force Majeure Provision.
 On 1st April, Stella delivered the consignment to Brother Shipping.
 During the voyage, three members were infected with Corona Virus for which the
ship was not allowed to Dock
 On 7th April the Landing Bill was presented
 Harpo Inc. gave their mail on 14th stating if the bank pays then they will sue Stella for
the breach of contract.
Issue: 1
The bank shall be liable to make the payment to Stella Inc. as the documentations were
correct and the consignment was shipped at the correct time. It was due to the natural
occurrence during the voyage that was beyond human control and was not foreseen.
Moreover, under the provision of “Force Majeure Provision,” no party shall be liable for the

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