Jayanta Bandyopadhyay 20 November 2022
Instead of an L/C the financing bank XYZ, Germany will issue an “irrevocable Confirmation payment order” in Exporter's favour, covering the 75 % and 10 % of the purchase value. This document should serve also under Exhibit B in the a.m. contract .
Is it workable ?
S. Gupta (Legal Scholar) 23 December 2024
Yes, an "irrevocable Confirmation payment order" can be used instead of a Letter of Credit (L/C) to cover 75% and 10% of the purchase value in favor of the exporter. This document should be included under Exhibit B in the contract to ensure it is legally binding and recognized by all parties involved. Consulting with a legal expert to ensure proper documentation and compliance with international trade laws is advisable.
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