Credit wrongly gave beneficiary's address as XXX,Sandkan while we know the correct address would be XXX,Sandakan.
Beneficiary's documents have reached our counters for negotiation. We thought of asking the beneficiary to amend their correctly spelled address
to match that of the LC.
Would that a wise move?
Thank you.
Typo Error/Omission
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michaeltan
- Posts: 10
- Joined: Fri Apr 05, 2019 5:22 pm
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PGauntlett
- Posts: 153
- Joined: Fri Apr 05, 2019 5:25 pm
Typo Error/Omission
Art 37a of UCP 500 requires that invoice appears to be issued by beneficiary. The presence of a typo in the address does not mean that this Art has been violated.
This, simply, is not a discrepancy which a bank could use to dishonour a presentation. Would a court support non-payment of a set of docs for this reason? I don't think so.
What would you do if the invoice simply had the beneficiary's name and no address? I believe that it would still meet the requiement of ART 37a.
If the address of the beneficiary contradicts that stated in the l/c e.g. Hong Kong instead of England, then you have a discrepancy.
This, simply, is not a discrepancy which a bank could use to dishonour a presentation. Would a court support non-payment of a set of docs for this reason? I don't think so.
What would you do if the invoice simply had the beneficiary's name and no address? I believe that it would still meet the requiement of ART 37a.
If the address of the beneficiary contradicts that stated in the l/c e.g. Hong Kong instead of England, then you have a discrepancy.
Typo Error/Omission
STEPPING OUT OF A BANKER'S SAFETY ZONE
A bank may give advice to its customer as a part of its service package. This does not mean that a bank should recommend its customer to change a correctly typed address into a wrong one just to match a wrongly worded LC. This is out of the scope of the bank's duty and safety zone. The beneficiary may sue the bank for misleading him if the result turns out not as expected by the beneficiary.
Since the bank does not charge for such service and gives its advice without any request from its customer, it is not worth for the bank to do this from sound commercial sense point of view.
We are from www.tolee.com
[edited 7/2/01 9:49:45 PM]
A bank may give advice to its customer as a part of its service package. This does not mean that a bank should recommend its customer to change a correctly typed address into a wrong one just to match a wrongly worded LC. This is out of the scope of the bank's duty and safety zone. The beneficiary may sue the bank for misleading him if the result turns out not as expected by the beneficiary.
Since the bank does not charge for such service and gives its advice without any request from its customer, it is not worth for the bank to do this from sound commercial sense point of view.
We are from www.tolee.com
[edited 7/2/01 9:49:45 PM]
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larryBacon
- Posts: 689
- Joined: Fri Apr 05, 2019 5:26 pm
Typo Error/Omission
This question may be answered by your own records. Presumably you acted initially as advising bank and forwarded the L/C to the beneficiary. How was the covering letter addressed ? Was it to Sandkan ? If so, and it arrived at Sandakan, your post office sees no distinction between the two. If addressed to Sandakan, you already acknowledge that there is no difference, but you are failing in your duty to advise the L/C without changes to the L/C proper.
What should have happened is that you should have sought clarification from the issuing bank.
What should have happened is that you should have sought clarification from the issuing bank.