Irrevocable Letter of Credit

An irrevocable letter of credit is very common in international transactions, usually involving trade. It is almost the exact same as a normal letter of credit, but in this case, the money will be paid out, no matter what, and the letter can’t be cancelled. The letter can be modified, though, if all parties, including the issuing bank, agree to the changes. If the obligations of the agreement are not met, the letter will become null and void.

Tips for writing an irrevocable letter of credit

-   Make sure all the obligations are achievable by both parties before confirming the letter

-   Make sure everyone understands all the terms

-   Do not try and sneak in previously unagreed upon clauses
Sample irrevocable letter of credit

Royal Bank

US">Toronto, Ontario

Dear Royal Bank,

We have authorized you, M ararian Consulting, to draw on the account of Boeing Corp for the amount of $40,000 on the date of May 1st, 2010, as long as all the obligations of your previous agreement have been met. If this is the case, this letter cannot be revoked. If you do not complete your obligations in relation to your agreement with Boeing, this letter will be null and void.

Signature

Underwriting party

Comments

Post a Comment

Popular posts from this blog

Writing an Nomination Letter for an Award

Nominating a colleague for an award can be a large undertaking that requires a lot of thought and careful planning. Nominating your friend has many benefits, however. Someone from your business will be nominated, which makes your business look good and you will have practice writing a detailed case for an award, which helps your writing award nomination letter . In addition, your friend will remember the time and effort you went through to nominate her and later on she may nominate you when another award becomes available. Take special care to write a clear, convincing case for your nominee so she has the best chance of winning. 1. Read the award criteria carefully to make sure that your nominee is eligible. You will make yourself and the nominee look foolish if she doesn't meet the criteria for the award. 2. Brainstorm a list of reasons why your nominee should win the award. Focus on her achievements and the results of her work; awards committees want concrete details
Read more

Write a Effective Cover Letter

A cover letter tells the employer the type of position you're seeking and highlights the specific aspects of your experience that qualify you for a particular position. Your cover letter can explain things that your resume can't. If you have large gaps in your employment history because of school or you are reentering the job market or changing the focus of your career, a cover letter can explain these circumstances in a positive way. The cover letter should never, ever exceed one page, and it's best to keep it well under a full page. Be Sure to Include the Following: Include the position title (and number if provided) in the first paragraph of the cover letter (If e-mailing, make sure to include this information in the subject heading of your e-mail) Include your educational background (whether you are currently in an MBA program or have recently graduated from one) Make specific references to the company and indicate your knowledge of the company’s primary
Read more

Tips on How to Write a College Acceptance Letter

Study the tips given below to get an idea about writing a college acceptance letter to help you more. It is advisable that you write in your own style. You can use a modest tone, yet try to be serious. Always remember such letters need not be very long but should be meaningful. Mention the current date in your letter. Clearly state the purpose in the subject line in a concise manner. Start your letter writing with proper salutation or greeting. In the main paragraph let them know that you are informing them of your decision to accept their offer of enrolling in the specific program. Conclude your letter on a positive note such as with a sentence expressing your interest in the particular institution. Do not forget to express your gratitude for the selection committee or the institution for your selection at the end of the letter. You can also add your goal or dream about the program you have opted in the institution. Close your letter of college acceptance with the word “
Read more