Summary |
This book is an attempt to deal with all the legal aspects of a mercantile instrument which has been aptly described as the crankshaft of modern commerce.
The purpose of commercial letters of credit is to facilitate overseas trade by combining the advantages or ready money to the seller and credit to the buyer with security to both parties. The commercial letter of credit is thus normally used as an adjunct to a contract for the sale o goods, and to the normal two parties to a contract of sale its use adds one, two, and sometimes three additional parties, viz. the issuer of the letter of credit, the banker who discounts the seller’s drafts, and the banker through whom the letter of credit is advised. The legal relationships between all these parties inter se are discussed in the pages which follow.
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