A Contract Written by a Bank to Guarantee That the Bank

question 41

Multiple Choice

A contract written by a bank to guarantee that the bank will pay the exporter the amount of money owed by the importer is called a:

• A) Letter of credit
• B) Export contract
• C) Import contract
• D) Contract guarantee

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Definitions:

Written Agreement

A formalized contract between parties that is expressed in written form and signed to evidence the agreement.

Oral Agrees

Informal verbal agreements which may be legally binding if they meet certain criteria, despite the lack of written documentation, often depending on the context and jurisdiction.

One Year

One year denotes a period of time consisting of 12 consecutive months.

No Writing

A legal situation where an agreement or contract was verbally made without any documented evidence or formal writing.