Fact Pattern 22-B1
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.
-Refer to Fact Pattern 22-B1. In a letter of credit, the ben?eficiary is
A) Lapland.
B) Oboe.
C) First State Bank.
D) none of the above.

Question

Fact Pattern 22-B1 
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.
-Refer to Fact Pattern 22-B1. In a letter of credit, the ben?eficiary is
A) Lapland.
B) Oboe.
C) First State Bank.
D) none of the above.

Quizplus · Accepted Answer

In a letter of credit, the beneficiary is the party in whose favor the letter of credit is issued, which in this case is Lapland Mining, Ltd., as they are the ones receiving the payment under the letter of credit.