Assignment Instructions/ Description
Read the attached letter of credit, from the Morgan Guaranty Trust Company to Smith Tool Company. Then answer the following questions.
1. Who issued the letter of credit?
2. Is it irrevocable?
3. Has it been confirmed?
4. If so, by whom?
5. Who s the buyer?
6. Who is the seller?
7. What kind of draft is to be presented?
8. What documents are required?
9. What are the INCOTERMS of sale? Please explain the term and the obligations of both buyer and seller.
10. When does the letter of credit expire?
11. Where does the seller go for payment?
12. Who pays the freight?
13. Who pays the insurance?
14. Must the steamship company attest that the merchandise has been loaded on the ship?
15. What is the reason for your answer to questions 14?
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