Best Trade Solution

ucp 4:


a. A credit by its nature is a separate transaction from the sale or other contract on which it may be based. Banks are in no way concerned with or bound by such contract, even if any reference whatsoever to it is included in the credit. Consequently, the undertaking of a bank to honour, to negotiate or to fulfil any other obligation under the credit is not subject to claims or defences by the applicant resulting from its relationships with the issuing bank or the beneficiary.


Q: Please clarify the below, if possible please provide examples
A-RELATIONSHIPS APPLICANT WITH ISSUING BANK?
B-RELATION SHIP APPLICANT WITH BENEFICIARY?
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A beneficiary can in no case avail itself of the contractual relationships existing between banks or between the applicant and the issuing bank.

Q:Please clarify the below, if possible please provide one example
C- contractual relationships existing between banks
D-contractual relationships existing between the applicant and the issuing bank.

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regards

Applicant- Beneficiary = P/I, P.O etc
Applicant- IB = LC application and underlying indemnities
IB - Nominated Bank = LC reimbursement agreement
Confirming Bank - Beneficiary = LC Confirmation undertaking
IB - Beneficiary = LC

mr abrar:
thank you

pls more clarification by example

1-how can applicant use (the relation ship with issuing bank )(i.e LC application and underlying indemnities) to defence/claim ?

2-how can applicant use (the relation ship with beneficiary )(i.e p/i-p.o) to defence/claim ?

3-how can beneficiary avail itself contractual relationships existing between (nominated bank and issuing bank)
(i.e LC reimbursement agreement)
4-how can beneficiary avail itself contractual relationships existing between (applicant and issuing bank)
(i.e LC application and underlying indemnities)



appreciated you detailed answer


profound regards