Ucp 600

CASE STUDY ON UCP-600

                                                 
Discuss the nature of the problems and possible solutions of the following cases (as per UCP-600):

Case No. 1: A B/.L tendered along with other documents for negotiation contained the words “shipped on deck” The nominated bank negotiated the document since the L/C did not specifically prohibit this. The issuing bank refused to honour the documents.

Answer-Article No. 26

Case No. 2: An L/C mentions 12500 lbs of “shrimps” should be shipped. The invoice indicates actual shipment of 13,560 lbs. The nominated bank has refused to negotiate since quantity of goods exceeded.

Answer-Article No.30.

Case No. 3: A transferable L/C was established for £15000. The beneficiary wanted to transfer £4000 in favour of A, £6000 in favour of B, and £5000 in favour of C. The advising bank refused to accede to the request on the ground that a transferable L/C can be transferred once only as per UCP. The UCP does not prohibit partial shipment.

Answer-Article No. .38

Case No. 4: A bank has negotiated a bill under L/C complying all terms and conditions of the L/C. The documents were sent to issuing bank for reimbursement as per L/C. By that time, the issuing bank has received authentic information that the goods shipped were of poor quality and it repudiated the documents on the ground that the nominated bank should have satisfied itself that the goods shipped confirmed to the requirements of L/C.

Answer-Article No. 5
Case No. 5:   A credit was issued with a validity of one month for shipment and one month for presentation of the documents. The validity was extended twice but when the credit expired at the end of six months, no shipment had been effected, and the buyer suffered a financial loss.

The buyer reported the matter to his Chamber of Commerce, which requested ICC to use its “good offices in persuading the sellers to honour their contractual obligations”.

ANSWER A buyer cannot...