| After shipping goods as credit, the NEGO for the documents have been requested to "D" bank, and the "D" bank NEGO the documents and inquiry the delivery through a express delivery company. The express delivery company sent the documents to the affiliates of the importing country and upon receiving the documents, the same affiliates did not delivered to the debtor who is the applicant of the credit but to the originator party according to the originator party's request. And the originator party submitted the documents to a custom and became dishonor after receiving the goods.
Case study
1. Missing, delay and damage while delivering shipping documents
According to the U.C.P, a bank has absolutely no responsibility of the missing, delay and delay, damage while dispatching shipping documents. (The Article 16 of U.C.P. 500). Therefore, a negotiating bank has no responsibility on the mis-delivery of documents but the express delivery company is responsible for the damage.
2. Compensation against a express deliverly service company
Instituting a lawsuit against a delivery company is possible if it is registered as a independent corporation but if it is registered as a agency of a overseas company, a deed is on the head office therefore, a law suit should be made against the head office.
3. Violating express delivery instruction
I.C.C. interpreted that if such action is inconsistent to a credit terms if a document is suppose to be sent out using express delivery but if the instruction was neglected. The instruction is made by a opening bank to the paying, take over and negotiating bank. Therefore, if a sending bank used different method to send documents, it has nothing to do with a beneficiary so this is not regarded as inconsistent act.(I.C.C. pub 489. case No.219).
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