A Letter of Credit Is Used When the Exporter Needs

question 43

True/False

A letter of credit is used when the exporter needs greater assurance that the importer is going to pay for the goods or services received.

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Definitions:

Contracts

Legal agreements between two or more parties that create mutual obligations enforceable by law.

Contract For A Necessary

An agreement to supply goods or services that are essential for an individual's health or welfare, often enforceable even when entered by minors.

Basic Needs

Essential requirements for humans to survive and maintain health, typically including food, water, shelter, and clothing.

Voidable

describes a contract or transaction that is valid and enforceable on its face, but may be deemed void by one or more of the parties due to certain conditions.