Buyer's obligation to open a letter of credit arising from the commercial contract concluded with a particular beneficiary, often be a contract of sale of that decade, and it requires the seller to the buyer to pay the price through a letter of credit. This may be a decade of renting or agency for payment or other contracts.
The basic principle is to agree the seller and the buyer in the commercial contract concluded between them on how to settle the price, where they agree on how it provides its commitment to the bank to the beneficiary of the appropriation, it may be to pay cash on receipt of documents, may be to accept the bill. They also agree on how long the bank remains committed to the beneficiary, and the place to be when the presentation of the documents, which is the fulfillment of its obligation to the Bank, and other details that concern them.
The basic principle is to agree the seller and the buyer in the commercial contract concluded between them on how to settle the price, where they agree on how it provides its commitment to the bank to the beneficiary of the appropriation, it may be to pay cash on receipt of documents, may be to accept the bill. They also agree on how long the bank remains committed to the beneficiary, and the place to be when the presentation of the documents, which is the fulfillment of its obligation to the Bank, and other details that concern them.
