Discrepancy: 0 or O
Posted: Fri May 03, 2013 1:00 am
We would appreciate your opinions on the case that follows:
Bank I issued a letter of credit where the merchandise description included the reference of purchase order ABC/0-123/X1. Bank C, as requested to, added its confirmation to the credit and latter received a presentation that was considered compliant. Documents were forwarded to the issuing bank who refused them due to the following discrepancy:
-Certificate A and certificate B evidence PO ref. inconsistent within itself.
Acyually, both certificates did show the purchase order reference twice: in the top of the document as ABC/0-123/X1 (with a zero) and in the bottom as ABC/O-123/X1 (with an O as in Oscar).
The letter of credit did not require that the purchase order should be stated in all documents; so, the confirming bank just disregarded the additional reference that did not strictly match the l/credit.
Every other document - invoices included, of course - quoted the purchase order correctly as ABC/0-123/X1.
Since the correct reference (with a zero) was stated in all documents, is it possible to claim a conflict within the document? Wouldn't that be an odd reading of art. 14 (d)? Aren't we simply in presence of a spurious discrepancy?
Thanks for sharing your views.
António
Bank I issued a letter of credit where the merchandise description included the reference of purchase order ABC/0-123/X1. Bank C, as requested to, added its confirmation to the credit and latter received a presentation that was considered compliant. Documents were forwarded to the issuing bank who refused them due to the following discrepancy:
-Certificate A and certificate B evidence PO ref. inconsistent within itself.
Acyually, both certificates did show the purchase order reference twice: in the top of the document as ABC/0-123/X1 (with a zero) and in the bottom as ABC/O-123/X1 (with an O as in Oscar).
The letter of credit did not require that the purchase order should be stated in all documents; so, the confirming bank just disregarded the additional reference that did not strictly match the l/credit.
Every other document - invoices included, of course - quoted the purchase order correctly as ABC/0-123/X1.
Since the correct reference (with a zero) was stated in all documents, is it possible to claim a conflict within the document? Wouldn't that be an odd reading of art. 14 (d)? Aren't we simply in presence of a spurious discrepancy?
Thanks for sharing your views.
António