Case Study

Phua Chu Kang Ltd (PCK) is a leading commodity trading company headquartered in Singapore.

Crocodile Dundee Ltd (CD) is a company that processes, packs and sells soybeans from over 20 farms across Australia.

PCK purchased 100 metric tons of “Australian grown non-GMO (non-Genetically Modified) soybeans” from CD. The purchase was made under a CIF contract, goods to be shipped to Hong Kong from Port Kembla, New South Wales, Australia, latest date of shipment, March 15, 2018.

Question 1

Scenario 1 : Should Merlion Bank and Kookaburra Bank make payment under the Letter of Credit? Please cite relevant provisions of the UCP (if any) to support your answer. (2 marks)