There are certain premises which we must understand before we can conduct a safe trade as an intermediary, starting with LOI/BCL and its relevance or otherwise pertaing to the question of correct application for and by intermediaries in the realm of international trade.

1)There is no such thing as Letter of Intent .L.O.I: Letter of indemnity correctly defines the acronym.An LOI as it is now being plied by most traders carries no legal effect or consequence in international trade while the latter , as a Letter of Indemnity carries the full force of the law when a certain term and condition is breached in a contract

2) BCL: Only an*** would expose his b-a-n-k a-ccount holding millions of dollars to intermediaries or a seller half way across the other side of the world-.And even if they did- It only proves that such a person has more money than sense. It does not mean he will buy the product- A Guarantee is needed for that to happen .For example, an (L/C): Showing funds and buying are two very different doctrines- In the case of Intermediaries, they have not got millions (most haven't anyway) hence how can they produce a BCL- In any case even if they could it is against all banking laws to speak about a person's account, and no bank will simply do so because of some paper which says BCL on it, produced by an intermediary via fax from another planet- Really guys..?

3) No pre condition to a transaction may be accepted by an intermediary for trading where such a conditions asks for a Bank comfort letter associated with the issue of an ICPO or LOI- (Letter of Intent): In most trading circumstances , a Quote, Offer and Contract must prevail to establish grounds under English contract laws, which defines;- Inter alia, Acceptance, Legal Capacity and Consideration, to which- Since English Law is the leading universal application in the realm of International trade-

4) Intermediaries therefore must by implication safeguard or reinforce and favour their own trading activities. Historically, Lloyds of London is the founding entity which apply well tested rules applicable to merchant vessels and goods sold Internationally. Such rules used by nearly every country in the world, to which the intermediary shall become familiar with especially matters pertaining to insurance and Bill of lading, further- London Court of Arbitration is strongly used as a international forum in settling matters of disputes between trading parties in different countries- As such LOI procedures served with the virtues of a BCL is not a readily identifiable legal application, to which English law will suit- in that; Since English law is, as already identified above in part, a major force in the realm of International trade contract procedures, then the intermediary must use such procedures which favours them greatly, but only when supported with good strong trading principles. English law has already favoured Intermediaries in court rulings,

5)Besides, a BCL, a Bank Comfort Letter is not and cannot be used in the realm of international trade for intermediaries' application.. Bank Comfort Letters are only used where a corporate entity needs to give financial support to a related associated sub entity in the undertaking of some ciontractual obligations. Intermediaries shall not ply such procedures or similarly new procedures which are becoming common practice, especially- Internal Letters of Credit Issuance and Corporate Performance Guarantee?s- Such application are not suitable for intermediary use, and shall not be offered in a transaction conducted by intermediaries.

So , if ever someone asks for LOI/BCL with the requirement to disclose financial details or ask for POP/POF ask them not to come to this forum to seek out buyers and sellers through other intermediaries as a trading entity. This business is not for us to ply as intermediaies. They are for direct corporate-corporate application in the like of a primary oil contract. which is not for the intermediaries' cups of tea.

Replying to [Honourable]:

Replying to [Honourable]:iam begainner in this faild and iam intermediat in deal how and seller ask me to get BCL/LOI from buyer what is the steps i can from it grante my commision..

Replying to [Honourable]:

Replying to [golam]: Ecellent article.
Brokers do not think for themselves. They follw the guy with the biouncing LOI/BCL.

I thank you for this article.
We ask for the draft contract, exchange preliminary POP/POF,
Let the end-buyer/seller conduct Bank to Bank and finalize the transaction.
Anythin else will nebver work/

Thanks
Dennis Spillane
Boston, MA

Replying to [Honourable]:loi + bcl are used to determine whether the buyer is serious and if indeed he is a real buyer. Everybody know that there are numerous so called buyers.
These documents are always send to the intermediare who will transfer these to the seller.
There is no direct seller wanting to get in contact with hundreds of jokers just waisting their time. That´s is why there are mandaters and agents. They filter the real buyers from the players.
in the bcl there is no such things as bankaccount numbers or anything of the like. it is an official letter from the bank stating that if company so and so would enter in such and such a deal that the L/C could be opened if the company wants to do so.
The bcl is normally only valid a few days, as well as the loi.