Assume the UCP 600 applies to the following transaction. Bella…
Question Answered step-by-step Assume the UCP 600 applies to the following transaction. Bella… Assume the UCP 600 applies to the following transaction. Bella Bout, a company in the United Kingdom, enters into a contract of sale for with an Australian company, Fine Silks. The contract is for the sale of 10,000 metres of lilac printed silk fabric at a price of $13 per metre. Payment for the goods was to be made by an irrevocable documentary credit to be opened by Fine Silks with the Goodsale Bank in London. Under the terms of the documentary credit payment was to be made against tender of the following documents:(a) a bill of lading;(b) an invoice for the goods; and(c) a certificate of quality attesting that it was pure silk by a UK Global Organic Textiles Standard (GOTS) certifier. Ginny Sews presented the following documents to the Goodsale Bank:(a) a received for shipment bill of lading;(b) an invoice for “silk fabric = 10 km length”(c) a certificate of quality signed by Jennifer Shcumacker, Acting Assistant General Manager, Silk Sewers Alliance. Goodsale Bank refused to accept the documents due to defects in the bill of lading and the certificate of quality.Bella Bout had obtained a shipped bill of lading and also sourced evidence showing that the Silk Sewers Alliance is a GOTS certifier. On re-tender of the documents, Goodsale Bank again refused to make payment, claiming there were defects in the invoice. The credit expired the day after the re-tender of the documents.Confining your response to the law related to documentary credits, advise Bella Bout on whether or not it has grounds for action against the Goodsale Bank for wrongfully refusing to accept the documents. Business Management Business Law ECON 4101 Share QuestionEmailCopy link Comments (0)