The phrase ‘payment before breaking bulk’ has long been used in contracts for the supply of grain and other bulk commodities. However, despite its apparent simplicity, there are still many contradictory and outright mistaken interpretations. If one tries to find an explanation in open sources, one will see that there is still no unified and precise understanding of this term. Let us examine a specific example from a typical contract clause: Payment: 100% net cash…
A letter of credit is a secure payment method between a seller and a buyer, ensuring payment for the delivery of goods or services upon the presentation of relevant documents to the bank. In this introductory article, we will explore what a letter of credit is, how it works, its key features, differences from other financial instruments, and practical tips for its use. How a Letter of Credit Works In simple terms, a letter of…