Author Question: Washers and dryers are generally fixtures in homes. Indicate whether the statement is true or ... (Read 254 times)

formula1 · **on:** Jun 24, 2018

Washers and dryers are generally fixtures in homes.
Indicate whether the statement is true or false

Question 2

Howard bought goods from Williams. Howard sent Williams a draft covered by a letter of credit issued by First National Bank. Is the bank required to investigate to determine whether the goods sent by Williams conform to the contract?

Anonymous · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

FALSE

Answer to Question 2

No. The issuer of a letter of credit has no duty to verify that the papers are supported by the facts or that the underlying transaction has been performed. It is thus immaterial whether the goods sold by the seller conform to the contract as long as the seller tenders the documents specified by the letter of credit.