Typo error in the name of Beneficiary of LC

[kirti]

hi, frendz

The applicant opened LC with a typo error in name of Beneficiary, it is showing as ABC i/o ABCD
Shipping documents shall reflect ABCD that being the correct name
The LC has clause stating Typo errors acceptable
Can the above error be counted as typo error?
What are the solutions besides amendment, and discrepant presentation

[ajoy]

Hi

My two bits

A typical typo is when the LC gives the correct spelling but the docs give the incorrect one. Here your LC gives the incorrect spelling and all your docs give the correct one.. so can we call it a typo in docs in the first place

If you know this upfront I recommend you get the LC corrected..for 'Madam' typed as 'adam' may be handsome but not beautiful anymore....ABC and ABCD can very well be two different companies..

On the other hand I believe that the rest of the address should confirm that we are talking of the same party...

It really depends on a case to case basis, how reasonable the parties to the credit are etc and is a judgement call many times. Even if you are able to prove that it is not a material differnece it would take effort and time especially if thier was a dispute between the two parties...

So your alternatives are :

- amendment
- clarification from IB
- fight out with IB that it is not a material typo

A fight is always a last option for me..

Dont think there are any other options...

comments welcome.

Cheers

[shahriar]

Agree with ajoy almost fully except address. It is possible to have more than one company with similar names at the same address; especially when they are concern. I suggest for asking an amendment. Otherwise there would be chances to face discrepancy. By the way, advising bank should have point this out.

[ajoy]

yes you can have same address for two different companies with very similiar names ...

Also typos in names are a serious business with all due respect Shiekhpir bhai... of 'what's in a name... a rose by any other name would still .........'' fame.

I guess I had that coming.. should be more careful ....

Thanks for correcting

Cheers

[cristiand969]

The usual standard banking practice in this situation is that the advising bank to inform issuing bank over this issue, correct name and with the end wording "if otherwise pls let us know' .
Such message can be associated with request for clarification as stated in UCP.