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preadvice
Posted: Mon Apr 06, 2009 9:06 pm
by maqianyueer
A preadvice credit is an irrevocable undertaking
A.To be irrevocable,operative credit must be issued
B.tRUE
C.False
D.Preadvice is not acceptable in UCP
WHY THE ANSWER IS B,I THINK A IS CORRECT TOO.
little trick
Posted: Tue Apr 07, 2009 2:03 pm
by wongvv
Hi !
According to UCP600 Art 11 b, it states " issuing bank ....is irrevocably committed to issue the operative credit ot amendment....".
The answer A states "irrevocable....credit...", but the issuing bank can issue either irrevocable or revocable credit.
Hope it may help!
V.V.
preadvice
Posted: Tue Apr 07, 2009 5:11 pm
by SHAMEER
THE ANSWER IS B: ie,preadvice credit is an irrevocable undertaking
As per ucp600 art 11, An issuing bank that sends a pre-advice is irrevocably committed to issue the operative credit or amendment, without delay, in terms not inconsistent with the pre-advice
Regards,
MS
True and False?
Posted: Tue Apr 07, 2009 5:47 pm
by Judith
A pre-advice is not an irrevocable undertaking in the same strength as the credit under it is. Therefore, I would think the answer is C.
But the answer may easily be ‘B’ on account of the way the question is worded. Is a pre-advice an irrevocable undertaking given by the issuing bank to issue a credit? Answer is yes.
The key question is, what happens to a bank that does not issue an LC under a pre-advice? (Interestingly, UCP has not specified a time limit for banks to issue credit following a pre-advice.) I do not know the answer but I reckon that’s for courts to decide.
o boy!
Posted: Tue Apr 07, 2009 7:57 pm
by iLC
its amazing. always simple looking question triggers a good discussion. we let me place my opinion here.
first of all, UCP usually does not answer questions which start with "what if not.."
so UCP article 11
clearly says its irrevocable, so better take it as irrevocable.
is it a irrevocable undertaking to the beneficiary? well, i am not sure. it depends on the content of the pre advice. if the preadvice say that its a preadvice of a irrevocable credit, then it is a irrevocable undertaking.
looking simply; i agree with the answer given