Certify the regularity of the entire order

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Cee Company in Canada agreed to sell 10,000 gallons of maple syrup to Dee Company in Denmark. Dee Company arranged for a letter of credit with its bank in Copenhagen. The credit required payment on the presentation of a bill of lading and an inspection certificate issued by a quality control company, Vigilance, Inc., of Toronto. Cee Company produced both the bill and the inspection certificate. The Copenhagen bank refused to pay because the inspection certificate stated that "based on a sample taken from 5 gallons, the maple syrup is not of the kind ordered." The bank argued that the certificate, on its face, did not certify the regularity of the entire order. Was the bank correct in refusing payment?

Reference no: EM132180518

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