Identify the parties by name that have an obligation, Financial Management

Identify the parties by name that have an obligation:

a. Buyer/Alpha hears a rumor that the toys have not been manufactured according to the expected specifications for such toys and that many of the toys crack and that the dyes rub off onto children's hands. The units have already been shipped and are on the high seas. Buyer's Bank/Commerce has received a properly endorsed Bill of Lading and the draft to pay under the LC along with all the other required documents. Buyer/Alpha seeks to stop payment for breach of contract and fraud and desperately is calling its Bank and sends a fax to Buyers Bank/Commerce demanding that his Bank stop payment due to breach of contract. Explain whether Buyer's Bank should or should not honor Buyer's request to stop payment.

b. Seller's Bank/Midland receives the properly endorsed Bill of Lading but notices that the draft is made payable to "Santa Clause" instead of "Santa Claus". Seller's Bank/Midland realizes this is a spelling mistake. But it still refuses to honor the draft for payment. Explain why you agree or do not agree with Seller's Bank‘s position referencing the appropriate provisions of the UCP.

c. From the very beginning, Buyer/Alpha was concerned about Seller/Santa Claus's ability to perform under the contract, so Buyer required Seller to obtain a Standby Letter of Credit in the amount of $21,000. Seller obtained the SLC from its bank/Midland payable to Buyer/Alpha. Buyer now invokes the SLC and demands payment from Sellers Bank/Midland. Should Midland pay Buyer/Alpha?

Posted Date: 2/14/2013 6:59:54 AM | Location : United States







Related Discussions:- Identify the parties by name that have an obligation, Assignment Help, Ask Question on Identify the parties by name that have an obligation, Get Answer, Expert's Help, Identify the parties by name that have an obligation Discussions

Write discussion on Identify the parties by name that have an obligation
Your posts are moderated
Related Questions
Telephone service costs the Eggleston Motor Hotel $250 per week. The business pays its phone service bill on the fifteenth day of each month, but it prepares its financial statemen

Q. Example on Walters dividend model? Example: - The following information is obtainable in respect of a firm: Capitalisation Rate (Ke)                     = 10% Earning

What is the monthly interest rate if the lease payments are $24,000 per month for 24 months. The total value is $420,000

Mr. Lam holds title to an asset worth €125.72. In order to raise money for an unrelated purpose, he plans to sell the asset in nine months. But Mr. Lam is concerned about the uncer

I keep getting different answers in excel and the financial calculator. is there someone who can walk me through this problem step by step: You plan to buy a new house for $250,0

Bond management evolution to some extent is linked to the increased volatility of the interest rate term structures which is in existence since seventies. Bond valuatio

1.  Suppose Bank one offers a risk free interest rate of 5.5% on both savings and loans, and Bank Enn offers a risk free interest rate of 6% on both savings and loans. What arbitra

"A" Round Financing "A" Round Financing is the first main round of business financing through private equity investors or venture capitalists. In private equity investing, an "

In the telecom industry of the Australia, these are some most important organizations such Vodafone Austrelia‎, TransACT Capital Communications, Optus, and Telstra. Vodafone A

Evaluate the importance of leverages in financial management of small scale companies