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Article 4 of UCP 600 ( Credits v. Contracts)

Posted: Mon Nov 24, 2008 1:21 am
by mkp
Hi
under article 4 of ucp 600 ( Credits v. Contracts):

1- what does " .... the undertaking of a bank to honour, to negotiate or to fulfil any other obligation under the credit is not subject to claims or defences by the applicant resulting from its relationships with the issuing bank or the beneficiary" mean ?

2- what does " A beneficiary can in no case avail itself of the contractual relationships existing between banks or between the applicant and the issuing bank." mean ?

I would grateful if you would pay to these matter with examples.
Regrads

Re: Article 4 of UCP 600 ( Credits v. Contracts)

Posted: Mon Nov 24, 2008 12:00 pm
by ofei
I can show you one example, then you may understand the meaning of both articles.
Sales contract: Description of goods:MP3
L/C: Description of goods: MP4
The beneficiary didnot notice the difference and shipped MP3.Later the beneficiary presents required documents which showed MP3 on all relative documents. Of course the documents were refused by issuing bank. Then the beneficiary may claim: The contract shows goods are MP3. Under such circumstance, the issuing bank won't accept the beneficiary's statement.
That reflects the first article you mention here.

Regards
Ofei