The bill of exchange is often mentioned in connection to payment agreed in international commercial contracts. The purpose of the bill of exchange

It is often mentioned that a letter of credit (LC) should be irrevocable and that the seller should not accept a revocable LC. Nowadays

The purpose of a letter of credit transaction is to make payment to the seller by the foreign buyer’s bank against the presentation of documents representing the goods.

A demand guarantee is sometimes confused with surety because they are similar undertakings to pay a sum of money.

Demand guarantees are also called ‘bonds’, and that term is sometimes used in international trade. However, the term bond is not precisely defined in law

Other parties, different from banks, may issue unconditional guarantees payable on demand, with terms identical to the terms included in the demand guarantees issued by banks.

Demand guarantees explained in our eLearning course contain an obligation of the issuing bank to pay a sum of money to the beneficiary when the beneficiary demands payment.

An international transaction between a seller and a foreign buyer is usually conducted as a contract of sale by which the seller will deliver goods