The Air way bill is to be presented and the air cargo receipt is suppose to be acceptable as per the credit terms. But the actual documents presented was a house airway bill issued by air transport broker and on the name of issuers, the broker representing the carrier has signed it. On the credit terms, it prohibits Transship but in the house airway bill, it states that the Transship is possible. The debtor notified of the payment rejection because of the house airway bill presenting and that it breaches the contract by allowing Transship.

Case study
1.Character of air way bill
Warsaw Convention for International air transport states that the "Air way bill has probability to a contract, trust and transportations terms as long as it has a proof of a contrary', therefore, it doesn't necessary mean the precondition of products loading and it is only a receipt since it is not a marketable securities. As of a result, it doesn't require security possession to exercise your right and since it is liner waybill, it is issued in consignee's signature method but can not be made out to the order.
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2. House Airway bill's suggestion when requested to present Air cargo Receipt
The house airway bill issued by a broker who doesn't have a proxy relationship with the carrier can not be accepted. But it is acceptable since the House Airway bill was issued with the broker's signature as a representative proxy for the carrier and the carrier's title is recorded. (I.C.C pub 459 case No.79-80)

3. Prohibiting Transshipment with air way bill
Even though Transship is prohibited with air way bill, if indicates that Transship can be processed or may process on AWB, it can be accepted as per U.C.P. (The Sub-Article 27 ( vii-c) of U.C.P 500)

Conclusion
For this case, the payment rejection for Transshipment is not relevant because the house Airway bill was issued by a broker as a proxy of the carrier.