Tolerances
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RolandLeupi
- Posts: 115
- Joined: Fri Apr 05, 2019 5:26 pm
Tolerances
and working also on Spring Bank Holliday...........
Tolerances
Just to add a rider to this discussion: An l/c without a unit price is very common in commodity finance as prices are not always known at time of issuance.
An oil L/C will generally incorporate a clause which allows the stated value to be exceeded depending on the value of the oil (calculated per contract) at time of drawing. With other commodities such as metals the tolerance is a way of covering any price fluctuations so it is possible for a drawing (under a +/-10% quantity/value l/c with no unit price stated)to be for 90% of the quantity and 110% of the value.
Phil
An oil L/C will generally incorporate a clause which allows the stated value to be exceeded depending on the value of the oil (calculated per contract) at time of drawing. With other commodities such as metals the tolerance is a way of covering any price fluctuations so it is possible for a drawing (under a +/-10% quantity/value l/c with no unit price stated)to be for 90% of the quantity and 110% of the value.
Phil
Tolerances
pls allow me to remind you art.3 of ucp500.as no unit price is stated under l/c you may consider, in this case, that the unit price has been amended under the contract between bnf and applicant.it isn't bank's problem and you don't have any obligation to check the reason why you have actual amount and quantity.in my opinion docs are ok.you may laugh but i just found your debate.
bogdan
bogdan