Whose endorsement is acceptable?
Whose endorsement is acceptable?
Under a L/C transaction, if one set of B/L presented showing the shipper "XYZ Forwarding company Ltd on behalf of ABC Trading Ltd.", whose endorsement on B/L can be acceptable by Issuing Bank? WHY? Is it any difference if the shipper mentioning "XYZ Forwarding Company for account of ABC Trading Ltd."? WHY?
-
PGauntlett
- Posts: 153
- Joined: Fri Apr 05, 2019 5:25 pm
Whose endorsement is acceptable?
According to ICC Opinion (Doc 470/TA.425rev dated 6/6/00) endorsement can be made by "XYZ Forwarding company Ltd on behalf of ABC Trading Ltd." or by 'ABC Trading Ltd'
Whose endorsement is acceptable?
"For", "On behalf of", "As agent of" and words of similar effect, all indicate that the one (legal entity) who signs is for another (legal) person.
"For account of" indicates that the one (legal entity) who signs wishes to highlight that the cost involved is for another party.
The former highlights the agency status and the latter highlights the cost involved, such as in a BL, the sea freight, demurrage, BAF, CAF & THD.
The law allows a party to perform his obligations by nominating an agent and the agent so nominated must declare his agency status clearly and unambiguously in the signatory. Since an agent can arrange shipment for his principal, there is no reason why, and it follows naturally, that he can endorse on behalf of his principal, unless the agency appointment has excluded this right.
UCP 500 has to respect the rights of a principal and an agent. If UCP 500 is in conflict with the local law requirements, it will not be enforceable. Please bear in mind that UCP 500 is to codify international standard banking practice (and must follow the legal requirements) rather than making law.
I am from www.tolee.com
[edited 5/22/01 5:23:59 PM]
"For account of" indicates that the one (legal entity) who signs wishes to highlight that the cost involved is for another party.
The former highlights the agency status and the latter highlights the cost involved, such as in a BL, the sea freight, demurrage, BAF, CAF & THD.
The law allows a party to perform his obligations by nominating an agent and the agent so nominated must declare his agency status clearly and unambiguously in the signatory. Since an agent can arrange shipment for his principal, there is no reason why, and it follows naturally, that he can endorse on behalf of his principal, unless the agency appointment has excluded this right.
UCP 500 has to respect the rights of a principal and an agent. If UCP 500 is in conflict with the local law requirements, it will not be enforceable. Please bear in mind that UCP 500 is to codify international standard banking practice (and must follow the legal requirements) rather than making law.
I am from www.tolee.com
[edited 5/22/01 5:23:59 PM]