A. Examine the following L/C with the following
contract to see whether the stipulations in the L/C are
exactly the same as those in the contract. If not, please
make your amendments.
National City Bank
New York, USA
Date: 5 June 2002
Letter of Credit
To: Shaanxi Ceroilfood
Imp. & Exp. Corp.
Advising Bank: China Bank, Xi’an Branch, Xi’an, China
You are authorized to draw on Messrs. Macdnoald &
Evans Co., for a sum not exceeding US$60,700(SAY US DOLLARS
SIXTY THOUGH SEVEN HUNDRED ONLY) available by draft drawn
in duplicate on them at 30 days after sight, accompanied
by the following document:
1. Full set of Clean on Board Bills of Lading made out
to order and blank endorsed, marked “FREIGT PREPAID”.
2. Signed Commercial Invoice in triplicate, including
S/C No 95/3456 dated May 3, 2002.
3. Weight Memo/Packing list in duplicate, indicating
gross and net weight of each package.
4. One original insurance Policy/Certificate
Packing: Packed in seaworthy wooden cases.
Shipment from Shanghai to Boston. Partial Shipment and
Transhipment are allowed, through B/L required. Shipment
to be made on or before 10 July, 2002
This credit is valid in China on or before 10 July,
2002, for negotiation and all drafts drawn hereunder must
be marked ‘DRAWN UNDER THE FIRST NATIONAL CITY BANK, Credit
Date: May 3, 2002
ShaanXi Ceroilfood Imp. & Exp. Co.
Messrs. Macdonald & Evans Co.
A Grade, Art. No.123
2,000 cartons 24 can each
US$28 per carton CIF New York.
US$ 60,800 (Say US Dollars Sixty Thousand Eight
in seaworthy reinforced cardboard box.
to be effected by the sellers for 110% of the invoice
value against All Risks as per China Insurance Clauses
of Jan. 1, 2000
to be effected in July, 2002 from Shanghai to New York,
part shipment is allowed and transhipment is prohibited.
at the buyer’s option.
Terms of Payment:
by confirmed and irrevocable sight L/C.
This contract is signed in Xi’an on this third day
of May, 2002.
The sellers The buyers