Hambro Bank, Ltd., an English bank, received a cable from a Danish company, A.O., requesting that an irrevocable letter of credit be opened in favor of J. H. Rayner and Company. A.O. instructed Hambro Bank that the letter of credit be for “… about P16,975 [pounds] against invoice full straight clean bills of lading…covering about 1,400 tons Coromandel groundnuts.” The bill of lading presented to Hambro by J. H. Rayner stated “…bags machine-shelled groundnut kernels,” with the abbreviation “C.R.S.” in the margin. Hambro refused to pay on the letter of credit. J. H. Rayner sued Hambro. The custom of trade holds that C.R.S. is short for Coromandel groundnuts. Why did the bank not want to pay on this letter of credit? Was the bank correct in denying payment on this letter of credit? J. H. Rayner and Co., Ltd. v. Hambro’s Bank, Ltd. [1943] 1 K.B. 36.

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now