754

1.2 THE BUYER PLACES AN ORDER AND INFORMS THE SELLER OF THE OPENING OF THE L/C

MAPLELEAF Inc.

89 KLF Montreal Canada

We thank you for your letter of 30 June replying to our enquiry and enclosing your catalogue and details of your terms. We hope that the goods are still available and have decided to place the attached order with you and would be glad if you could give it your early attention.

We have instructed the Impex Bank to open a credit for 10,000.00 dollars in your favour, valid until 15 September. The credit will be confirmed by General Bank, London, who will accept your draft on them at 60 days for the amount of your invoice. Please attach the following documents to your draft:

2 bills of lading,

2 commercial invoices,

Insurance policy for 11,500 dollars.

The sum of the credit is sufficient to cover c.i.f. shipment and bank commission on the draft. Despatch and marking instructions will be given by our forwarding agents in London, who will advise you of their charges.

Please advise us by airmail when the goods have been despatched.

Yours faithfully

D.Adair

D.Adair

Manager

755

1.3 THE SELLER RECEIVES THE ORDER AND CONFIRMS IT

JBL Netcomps Ltd.

12 a Belgrave, London, UK

July 18th 20__

MAPLELEAF Inc.

89 KLF Montreal

Canada

Dear Sirs

We are very pleased to have your order and are able to confirm that all the items required are in stock. It is a pleasure to have the opportunity of supplying you and we are quite sure you will be satisfied both with the quality of our goods and our service.

Your choice of method of payment is quite acceptable to us, and we note that this will be by irrevocable letter of credit for a sum not exceeding 10,000.00 dollars, valid till September 15th. When we receive confirmation of this credit from General Bank, London, we will make up your order and await despatch instructions from your agent.

We assure you that this order and all further orders made will have our immediate attention.

Yours faithfully

G.Simpson

G.Simpson

Manager

756

1.4 THE BANK ADVISES THE SELLER THAT THE CREDIT IS AVAILABLE (I.E. CONFIRMS THE CREDIT)

Impex Bank, Montreal, has sent a copy of the form used by the Buyer to open the L/C to General Bank, London, to authorize the opening of the credit. General Bank advises the Seller by the following letter:

23 July 20__

JBL Netcomps Ltd.

12 a Belgrave London

UK

Dear Sirs

Please find enclosed a copy of instructions from Impex Bank to open an irrevocable letter of credit for 10,000.00 dollars in your favour and valid till 15 September 20__.

You are authorized to draw 60 days’ bill on us against this credit for the amount of your invoice as soon as you provide evidence of shipment.

We shall require the documents listed below to be produced by you before we accept your draft, which should include our discount commission at 5% and charges listed on the attached sheet. It is also stipulated by the buyer that the goods covered by this draft be despatched in one shipment.

Yours faithfully

A.Handkerchief

A.Handkerchief

Manager

Enc: (List of documents)

757

1.5 THE SELLER SENDS THE DOCUMENTS TO THE BANK

JBL Netcomps Ltd.

12 a Belgrave, London, UK

1 August 20__

General Bank

100 Farrington Road

London EC2M 3HG

Dear Sirs

Referring to your advice of 23 July we now have pleasure in enclosing the shipping documents as called for in your letter.

As required by your client , we have included all charges in our invoice, which amounts to 9,685.00 dollars. Our draft on you for this amount is enclosed, and we ask you to discount it, after acceptance, at the agreed rate. Kindly remit the net amount to our No. 567-001 account at the Eastern Bank, Manchester.

We thank you for your assistance in the matter.

Yours faithfully

G.Simpson

G.Simpson

Manager

DOCUMENTARY CREDIT

PART II

2.1 THE BUYER REPLIES TO THE SELLER’S REQUEST TO PROLONG THE TIME OF DELIVERY AND DISCUSSES AMENDMENTS TO THE L/C

758

Stockholm, Sweden

Dear Sirs,

We acknowledge receipt of your letter of 25 September in which you asked us to prolong the time of delivery under Contract No. 12/BC/147 of 12 July 20__ for two weeks owing to some delays on your subcontractors’ part.

We can agree to your request but want to point out that in this case we will have to prolong L/C No. 14/MB/22/00 for

USD 12,000.00 opened by us with Midland Bank Ltd., London. This prolongation means that we will have to bear extra charges as all charges connected with any amendment to this L/C are for our account.

We think the following solution might help us: if you undertake to pay the charges connected with this amendment we will agree to your request and advise our bank to amend the L/C.

We are looking forward to hearing from you soon.

Yours faithfully,

A.Tugay

A.Tugay

Manager

2.2THE BUYER ADVISES THE BANK OF THE AMENDMENT AGREED UPON WITH THE SELLER

USD 12,000.00 for 15 days.

Please amend the L/C as follows:

Validity – delete 45 days and insert 60 days.

All charges are for the Beneficiary’s account.

Thank you for your attention to the matter.

Yours faithfully,

A.Tugay

A.Tugay

Manager

759

760

3.1THE BUYER INFORMS THE SELLER OF DISCREPANCIES IN THE DOCUMENTS

INTERMEDICINA

Moscow Sadovaya 37

31 August 20__

D.Marlow & Co. Ltd.

Prince of Wales Road

Sheffield S9 4EX

UK

Dear Sirs,

Yesterday we received a letter from City Bank NA, New York, advising us of several discrepancies in the documents forwarded by you to the bank blocking payment out of L/C No. C/25 for $231,000.00 opened by us.

We cannot agree to accept documents, which do not comply with the credit requirements and ask you to settle the problem with the bank without delay, as the validity of the L/C expires on the 15 September and it will be cancelled.

Your early reply will be greatly appreciated.

Yours faithfully,

R.Vagapov

R.Vagapov

Chief Buyer

761

3.2 THE BUYER ADVISES THE SELLER OF PAYMENT AND ASKS TO COMPLY

WITH THE REQUIREMENTS OF THE CREDIT

INTERMEDICINA

Moscow Sadovaya 37

12 September 20__

D.Marlow & Co. Ltd.

Prince of Wales Road

Sheffield S9 4EX

UK

Dear Sirs,

Our bank has advised us that the proceeds of our letter of credit No. C/25 have been credited to your account. We thank you for settling the problem with the bank promptly.

We should greatly appreciate it if you would present documents in strict compliance with the requirements of credits as we have signed three new contracts which provide for payment by letter of credit.

Yours faithfully,

R.Vagapov

R.Vagapov

Chief Buyer