Why did hambro bank not want to pay on this letter of credit

Assignment Help Business Law and Ethics
Reference no: EM13896559

OTA, Please assist with this practice case problem. Thanks.

Hambro Bank, Ltd., an English bank, had received a cable from a Danish company, A.O., requesting that an irrevocable letter of credit be opened in favor of J.H. Rayner and Company. A.O. instructed Hambro Bank that the letter of credit be for "...about P16,975 (pounds) against invoice full straight clean bills of lading...covering about 1,400 tons Coromandel groundnuts." The bill of lading presented to Hambro by J.H. Rayner stated "...bags machine-shelled groundnut kernels," with the abbreviation C.R.S. in the margin.

Hambro Bank refused to pay on the letter of credit. J.H. Rayner sued Hambro. The custom of trade holds that C.R.S. is short for Coromandel groundnuts. Why did Hambro Bank not want to pay on this letter of credit? Was the bank correct in denying payment on this letter of credit? What rule applies in this case?

Reference no: EM13896559

Questions Cloud

What are the possible repercussions for the firm : What are the possible repercussions for the firm if the employees aren't committed to the quality management program?
Discuss how facebook has changed the way share information : State your stand on whether you agree with either one of the articles and provide supporting arguments. Based on your observation, discuss how Facebook has changed the way we share information
Opening lines of the poem : Beginning with the opening lines of the poem, Achilles is often driven to action or reaction by his emotions. Which emotions drive him at various points in the narrative? Which events trigger emotional outbursts? Which characters intervene to prev..
Roman attitude toward emotional behavior : What appears to be the general attitude toward emotionally driven behavior in the poem? What might this suggest about the prevailing Roman attitude toward emotional behavior?
Why did hambro bank not want to pay on this letter of credit : Why did Hambro Bank not want to pay on this letter of credit? Was the bank correct in denying payment on this letter of credit? What rule applies in this case?
How would you propose that the factors be measured : Prepare a list of criteria for use in deciding who on your campus is most worthy of this award. How would you propose that these factors be measured? Should they be?
Consensus of readers of hopkins verse : Critics have long questioned the exact nature of Gerard Manley Hopkins' religious attitude. The essay "Pantheism in Hopkins" presents a viewpoint entertained by something less than a consensus of readers of Hopkins' verse.
What applicable rule and fact should apply in this case : Fruit of the Loom apparel buys fabric from China, has it treated with a chemical resin, has it cut in Thailand, and then ships the fabric to Mexico to add thread, buttons and zippers. Fruit of the Loom apparel then imports the pants to the U.S. U...
Explain the purpose of gina : Explain the purpose of GINA

Reviews

Write a Review

Business Law and Ethics Questions & Answers

  Legal environment of business caselet

The assignment in Law deals with the topic "Legal Environment of Business". A case study about Mary, a newly joined employee who is working in the USA and Europe. She faces few issues at her work place in Europe and tries to talk to her manager who s..

  Business ethics & legal issues caselet

This assignment is about the concept of Business Ethics & Legal Issues. The laws relating to these can be found in Antitrust laws. These laws are concerned with those large corporations which have a majority of market share, mergers and acquisitions.

  Questions on business law and ethics

Examples of securities that are exempted from the registration provisions of the 1933 Act and involving misstatement of material facts in a prospectus.

  Discuss the doctrine of ratification of pre-incorporation

With the aid of a decided cases, discuss the doctrine of ratification of pre-incorporation contract.

  Discuss the extent of phoenixing activity

It has been estimated that about 6,000 phoenix companies operate in Australia, costing government and the community hundreds of millions of dollars per year and impacting on individuals.

  Application of law to facts

Company Law, Application of Law to Facts and Conclusion.

  Question on business law and ethics

This assignment related to business law.

  Questions on business law

Answer all the questions under business law.

  Iidentify the issue raised by the facts

Iidentify the issue(s) raised by the facts, identify the relevant legal principles, apply the relevant legal principles to the facts, reach a conclusion.

  Evaluation of software development

Prepare a report and present an evaluation of the subsequent methodologies for software development in terms of cost, resources and time.

  Business value and ethics

Business value and ethics,  Bart agrees to put Sam's Super Bowl champion-ship autographed football in his sports store to sell for $1,500. Sam agrees to pay Bart a 15% commission for selling the ball. If Joe comes in the sports store and offers Bart ..

  Explain what is meant by income by ordinary concepts

Advise what tax consequences arise in respect of the payments.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd