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
Can you draw Capital asset pricing model with example and explain?????

Based on the period involved in repayment of the debt obligations, the debt instruments could be classified into long-/medium-/short-term debt instruments.

What is risk aversion? If common stockholders are risk averse, how do you explain the fact that they often invest in very risky companies? Risk aversion is the tendency to evad

How to compare minimax and maximin with figures and commentary ?

Abnormal Earnings Valuation Model Abnormal Earnings Valuation Model is a method to analyse the value of the firm. The value of the firm can be the sum of three components - the

• Prepare a Trend Analysis for the Balance Sheet, Income Statement and Cash Flow Statement • This should include about 12 accounts in the Balance Sheet and about 10 Income Statemen

Q. Example on hedge fund? Hedge Fund enters agreement to sell HK$ in six month's. At expiration the Hedge Fund requires to buy spot HKD and deliver these against the short futu

Due to the complexity of the tasks involved in many projects, communication of responsibility for those tasks is often helped by means of graphical planning techniques.

Internal business risk associated with the operational efficiency of the firm. The operational efficiency differs from company to company. The efficiency of operation is reflected

Country analysis and political risk Country analysis could use tools for example PEST factors in order to strategically analyse countries. Political risk