BILLS OF EXCHANGE AND LETTERS OF CREDIT

BILLS OF EXCHANGE AND LETTERS OF CREDIT - BILLS OF EXCHANGE...

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Unformatted text preview: BILLS OF EXCHANGE AND LETTERS OF CREDIT Matea Grabovac Lana Maravić Tina Trapara International financing • The financing of foreign trade • The capitalization of foreign investments Financing foreign trade BUYERS AND SELLERS Bills of lading • Essential document for all international sales • Lets the buyer and the seller (or their banks) exchange control over the goods • It represents the goods Bills of exchange • Written, dated, signed instrument • Useful instrument • Important device for facilitating international trade because they are negotiable instruments. According to governing law Bills of exchange must: Types of Bills of Exchange • Trade Acceptances - commonly used in the sale of goods. • Checks - a bill of exchange is a bank, the bill is known as a check Promissory notes Negotiability of Bills and Notes To be negotiable, a bill or note must: ü Contain a promise or an order to pay that is unconditional ü State a definite sum of money or a monetary unit of account ü Be payable on demand or at a definite time ü Be signed by the maker or drawer The negotiation and transfer of Bills and Notes • Bills and notes have to be freely transferable Negotiation Endorsements Types of endorsements Forged Endorsements • When is an endorsement forged ? • Who should have to sue the forger? • Forged or unauthorised endorsement invalidates the bill. Since it is a real defence, the person whose signature is forged or unauthorized will not be liable...
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This note was uploaded on 12/18/2011 for the course LAW 102 taught by Professor Sheetas during the Spring '11 term at SUNY Canton.

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BILLS OF EXCHANGE AND LETTERS OF CREDIT - BILLS OF EXCHANGE...

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