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Note: When a buyer, Long & Wide Development, Ltd., began having difficulty making payment within the agreed time frame of 70 days for purchases of cold rolled steel sheet in coils, seller, Nichimen Co., (HK) Ltd., required it to provide LCs which were obtained by the buyer through the offices of a third party. At that time, there were invoices outstanding and, in order to continue to ship, the seller/beneficiary required that the outstanding invoices be settled under the LCs. The buyer agreed to this relationship. Subsequently, the buyer signed a Memorandum acknowledging that it owed the full amount of certain listed invoices. At some point later, the seller sued the buyer for payment on these invoices in the amount of US$ 2,447,321.90 and moved for summary judgment. The Master denied the motion. On appeal, the High Court of the Hong Kong Special Administrative Region, Court of First Instance, Tang, J., reversed and entered summary judgment for the seller.

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