Payment Terms — Clause Generator
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L/C at Sight
Complete the fields below to generate Clause 4 for a sight Letter of Credit.
CLAUSE 4 — PAYMENT BY IRREVOCABLE LETTER OF CREDIT AT SIGHT
4.1 In consideration of the Goods to be supplied under this Contract, the Buyer shall establish, or cause to be established, in favour of the Seller an Irrevocable Documentary Letter of Credit, payable at sight, for one hundred percent 100% of the Contract Value with +/- _____% tolerance at Seller's option within _____ days from the date of this Contract / Proforma Invoice No. _____ dated _____.
4.2 The Letter of Credit shall provide, inter alia, that:
(i) it shall remain valid for negotiation until _____ (expiry date) and shall permit presentation of documents within _____ days after the date of the Bill of Lading / Airway Bill;
(ii) it shall permit shipment of the Goods on or before _____ (latest date of shipment) from _____ (port of loading) to _____ (port of discharge);
(iii) partial shipments shall be _____ and transhipment shall be _____;
4.3 All charges levied by the Issuing Bank and confirming bank, if any, shall be for the account of the Buyer. All charges levied by Negotiating Bank, advising shall be for the account of the Seller, unless otherwise expressly agreed between the parties.
4.4 If the Buyer fails to establish the Letter of Credit within the period specified, the Seller shall be entitled, without prejudice to any other right or remedy available to it, to treat such failure as a material breach of this Contract and to (i) suspend or cancel performance of this Contract, and/or (ii) claim damages for losses, costs and expenses (including cancellation charges, storage, and interest) arising from such failure, and/or (iii) allow an extension of time for establishment of the Letter of Credit on such terms as the parties may agree in writing.