Effective Statement For The Acceptance

The forum is dedicated to all who deals with LCs. Please share your experiences, problems and opinions with us. You are requested to be confined to LC related issues only. Let us together discover the beauty of Letter of Credit. Thank and regards – admin; besttradesolution.com
Post Reply
cristiand969
Posts: 754
Joined: Tue Aug 05, 2008 1:52 pm
First Name: Cristian
Last Name: D.
Organization: Bank
Filter: Two Plus Two =: 4
Location: RO

Effective Statement For The Acceptance

Post by cristiand969 » Fri Aug 04, 2017 12:25 pm

A letter of credit requires among other docs an Acceptance certificate signed both by the applicant and the beneficiary.
The presented doc just stated that beneficiary is obliged to provide and the buyer is obliged to accept goods as per description of goods.
Do you consider the document discrepant on the grounds that there is no effective statement for the acceptance but only the obligation of such acceptance. ?
thx,

Navi
Posts: 362
Joined: Mon Jun 23, 2008 4:17 pm
First Name: Olcay
Last Name: Özcan
Organization: Bank
Filter: Two Plus Two =: 4
Location: Turkey

acceptance certificate

Post by Navi » Fri Aug 04, 2017 1:05 pm

Hi friend,
.
As per UCP 600, 14f, we should decide whether the document fulfils its "expected" function, and I am uncertain whether it should bear some direct wording about acceptance of goods.
However, since the LC is silent about the content of the document and if a document with heading "Acceptance Certificate" signed by both applicant and beneficiary is presented, it is hard to reject that document.
.
other comments appreciated

cristiand969
Posts: 754
Joined: Tue Aug 05, 2008 1:52 pm
First Name: Cristian
Last Name: D.
Organization: Bank
Filter: Two Plus Two =: 4
Location: RO

One idea that crossed my mind...

Post by cristiand969 » Fri Aug 04, 2017 5:06 pm

The main issue is whether or not the the intention of the parties was in the direction described by L/C , i.e the doc to show that there is an acceptance fact (an acceptance took place) . Regardless the content of this docs is missing in the L/C, one cannot consider that a partial acceptance (and implicit partial rejection) or that the applicant promise to review their acceptance would fulfill the function of document. As for me, as long as the the applicant has obliged himself to accept goods, whether right away or at a later date , such obligation values as an irrevocable consent of the applicant to accept and as such the purpose has been achieved.

Post Reply