purchase and negotiation

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peterpeter
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Joined: Sat Mar 21, 2009 1:22 pm

purchase and negotiation

Post by peterpeter » Sat Mar 21, 2009 8:28 pm

What is/are the difference of the subject?
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Judith
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Joined: Thu Mar 12, 2009 8:59 am

Negotiation is wider in scope

Post by Judith » Sun Mar 22, 2009 7:19 pm

While the activities performed under “Purchase, “Pre-payment” or “Negotiation” might often be the same (i.e. examine documents and pay the beneficiary in advance), negotiation is wider in scope.

While purchase or pre-payment refers to the actual act of advancing funds, negotiation includes agreeing to advance funds on or before the date on which reimbursement is due from the issuing bank.
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shahriar
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Post by shahriar » Sun Mar 22, 2009 7:38 pm

UCP290 article 3 defines negotiation as purchase/negotiation. hence purchase and negotiation can be treated in the same way.
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