The Issuing Bank Is Required to Pay on Documents in Case

question 50

Multiple Choice

The issuing bank is required to pay on documents in case of _____,but not in the event of:

• A) fraud; breach of warranty.
• B) delivery of the goods; non-delivery of the goods.
• C) breach of warranty; fraud.
• D) issuing banks are not the paying banks.

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Definitions:

Conversion

The unauthorized use or possession of someone else's property, leading to the infringement of property rights.

Tort of False Imprisonment

A legal claim against someone who intentionally restricts another's freedom to move without authority, justification, or consent.

Complete Restraint

A legal term referring to an agreement or clause that totally restricts a party's freedom or action.

Wrongful Interference

Actions that unlawfully disrupt or meddle in the business relationships or contracts between others, causing harm.