The Issuer of a Letter of Credit Can Revoke or Modify

question 16

True/False

The issuer of a letter of credit can revoke or modify the letter at any time without the consent of the beneficiary, even if that right is not expressly reserved in the letter.

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Definitions:

Punitive Damages

Monetary compensation awarded to the plaintiff, over and above actual damages, intended to punish the defendant for egregious conduct.

Excess

The amount that is more than necessary, needed, or specified; in insurance, it refers to the part of a claim that the insured must pay, which is not covered by the insurer.

Civil Wrong

An action that harms someone else but is not necessarily a criminal act; typically addressed through civil legal proceedings for damages or restitution.

Restatement Third, Torts

A set of principles and guidelines in U.S. tort law, organized by the American Law Institute, intended to clarify, modernize, and otherwise improve tort law.