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California Commercial Code

§ 2325

COM § 2325Div. 2 · Ch. 3

Statute text

View on leginfo.ca.gov
(1)Failure of the buyer seasonably to furnish an agreed letter of credit is a breach of the contract for sale.
(2)The delivery to seller of a proper letter of credit suspends the buyer’s obligation to pay. If the letter of credit is dishonored, the seller may on seasonable notification to the buyer require payment directly from him.
(3)Unless otherwise agreed the term “letter of credit” or “banker’s credit” in a contract for sale means an irrevocable credit issued by a financing agency of good repute and, where the shipment is overseas, of good international repute. The term “confirmed credit” means that the credit must also carry the direct obligation of such an agency which does business in the seller’s financial market.

Legislative history

Enacted by Stats. 1963, Ch. 819.

Source: California Commercial Code § 2325 from the California Legislative Information (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.