The Discrepancy Issue in Letter of Credit and Its Handling Methods
The article elaborately analyzes the concept of discrepancies in a letter of credit. It refers to the situation where documents do not meet the requirements of the L/C, which may be caused by minor errors, such as typos, or major errors, such as late delivery or incomplete documents. After a discrepancy occurs, the bank may consult the buyers opinion. If the buyer doesnt mind, the L/C will continue to be executed, but a fine may be required. If the buyer does not accept it, the bank may refuse to pay and return the documents to the seller. If the buyer accepts and requests a deduction, it needs to be negotiated between the buyer and the seller. When dealing with an L/C, one should be cautious and carefully check all documents to ensure they meet the requirements of the L/C.
PSB Record: Shanghai No.31011502009912
