(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 or her.
(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.
History.—s. 1, ch. 65-254; s. 571, ch. 97-102.
Note.—s. 2-325, U.C.C.
Structure Florida Statutes
Title XXXIX - Commercial Relations
Chapter 672 - Uniform Commercial Code: Sales
Part III - General Obligation and Construction of Contract (Ss. 672.301-672.328)
672.301 - General obligations of parties.
672.302 - Unconscionable contract or clause.
672.303 - Allocation or division of risks.
672.304 - Price payable in money, goods, realty, or otherwise.
672.306 - Output, requirements, and exclusive dealings.
672.307 - Delivery in single lot or several lots.
672.308 - Absence of specified place for delivery.
672.309 - Absence of specific time provisions; notice of termination.
672.310 - Open time for payment or running of credit; authority to ship under reservation.
672.311 - Options and cooperation respecting performance.
672.312 - Warranty of title and against infringement; buyer’s obligation against infringement.
672.313 - Express warranties by affirmation, promise, description, sample.
672.314 - Implied warranty; merchantability; usage of trade.
672.315 - Implied warranty; fitness for particular purpose.
672.316 - Exclusion or modification of warranties.
672.317 - Cumulation and conflict of warranties express or implied.
672.318 - Third-party beneficiaries of warranties express or implied.
672.319 - “F.O.B.” and “F.A.S.” terms.
672.320 - “C.I.F.” and “C. & F.” terms.
672.323 - Form of bill of lading required in overseas shipment; “overseas.”
672.324 - “No arrival, no sale” term.
672.325 - “Letter of credit” term; “confirmed credit.”
672.326 - Sale on approval and sale or return; rights of creditors.
672.327 - Special incidents of sale on approval and sale or return.