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Drawee, Consignee and Applicant

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Wed, 09/12/2007 - 03:29
cychan
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I have a franchise agreement with Company A. I received an LC from Company A with the drawee as B Financial Group. The applicant states as Company C. As stated in the Franchise Agreement, I can only ship to Company A. The article on documents required states that "Full set of clean"on board" through Bl/Airway Bill consigned only to B Financial Group, Notify is the Applicant. Therefore if I present the LC to my bank will I have problem drawing payment from this LC?

Thanks.

‹ Correction and alteration on airway bill I need some clarification with regards to L/c ›
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Wed, 09/12/2007 - 08:07
#1
Armagedo
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No. If the docs will be credit conform

Hi!

First of all, as far as LC is in concern, all banks are dealing with documents and not with contracts, goods etc...See, UCP 600 Articles 4 and 5.

And there is no any objections for the banks to opearte with such an LC. They will pay You as soon as You'll present them credit conform docs and within terms and conditions of LC in reg payment.

Your franchise agreement with Company A is out of there control, interest etc....

So it's up to You and Company A to agree for this special case special conditions (making, for example, additional agreement) describing this transaction and that in such a case no penalties, claims will be put onto Your side.

Good luck.

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Wed, 09/12/2007 - 20:48
#2
cychan
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Thanks for the confirmation.

Thanks for the confirmation. It really helped.

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