Defining Letter of Credit

Letter of Credit
Your name
Subject and Section
Professor’s Name
June 19, 2021
A Letter of Credit is perhaps one of the essential agreements in the field of international commerce. It allows international transactions through collaborative efforts on various stakeholders such as the buyer, seller, and banks issuing the letters of credit. Nonetheless, since letters of credit are executed in a document and are usually handled by multiple parties, the slightest mistakes could result in the risks of unenforceability. Hence, in order to reduce these risks, parties must; (1) procure multiple certified digital and physical copies of the agreement and (2) use legal devices during the creation of the agreement that would reduce the “uncertainty” of the contract.
On the one hand, procuring multiple certified digital and physical copies of the agreement could reduce the risks of alteration on any party. Since letters of credit are strict and are interpreted according to the wording of the document, any slight error or alteration may reduce...