Question on L/C.
Post 1 of 7
After open the 100% Irrevocable L/C at Sight. The seller change the Price or increase the Price. On this condition there is any law or any rule which give the punichment to the seller ?
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08 Nov 2006 01:14
Post 2 of 7
Replying To [Munnu]:Unfortunately teh Seller can do that.
You should originally have a Sales agreement or a Pro Forma Invoice with the Seller for a set price before you open the LC.
If however, you do not agree with the increase in price, you can cancel the LC.
Speak to your bank about this.
I will also move this topic to Payment and Finance forum. You will probabaly get more replies there too.
08 Nov 2006 01:50
Post 3 of 7
Quoting from [Munnu]:
After open the 100% Irrevocable L/C at Sight. The seller change the Price or increase the Price. On this condition there is any law or any rule which give the punichment to the seller ?
It is a irrevocable letter of credit, issued by the buyers bank to the sellers bank. so if the conditions are satisfied with proof of document, the buyers bank will pay the agreed amount to the sellers bank without any probelem
But you have to prove and submit the satisfied proof of documents for completion of the conditions
SIGNATURE:
About Our Company
08 Nov 2006 04:57
Post 4 of 7
Replying to [Munnu]:
First thing if someone is opening lc but natural he will ask PB performance bond.So in case your seller cant perform u get the PB money.
First thing if someone is opening lc but natural he will ask PB performance bond.So in case your seller cant perform u get the PB money.
01 Dec 2006 04:50
Post 5 of 7
Replying to [Munnu]:the lc is opend on basis of sales contract. and once the Lc opend the sell cannot change the price there are different forum to deal this type of thing. some buyer take 2%pg for shipment if seller fail to effect shipment they cash the PG.
01 Dec 2006 09:29
Post 6 of 7
Cancelling a L/C costs money too. The best thing to do is to fix the price with the supplier with a proforma invoice. And make sure the L/C is opened while the price is still valid as indicated with a date on proforma invoice.
01 Dec 2006 18:40
Post 7 of 7
Replying to [Munnu]:
PB is a way to guarantee the shipment by the seller. But it is not in application for the L/Cs amounting upto some extends, and reguired generally for large volume and/or revolving L/Cs.
Best Regards
Yarenimex
PB is a way to guarantee the shipment by the seller. But it is not in application for the L/Cs amounting upto some extends, and reguired generally for large volume and/or revolving L/Cs.
Best Regards
Yarenimex
03 Dec 2006 03:03
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