Sec. 2325.
(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.
History: 1962, Act 174, Eff. Jan. 1, 1964
Structure Michigan Compiled Laws
Chapter 440 - Uniform Commercial Code
Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102)
Article 2 - Sales (440.2101...440.2725)
174-1962-2-3 - Part 3 General Obligation and Construction of Contract (440.2301...440.2328)
Section 440.2301 - Obligations of Seller and Buyer.
Section 440.2302 - Unconscionable Contract or Clause.
Section 440.2303 - Allocation or Division of Risk or Burden.
Section 440.2304 - Price; Payment in Money, Goods, Realty, or Otherwise.
Section 440.2305 - Open Price Term; Fixed Price.
Section 440.2306 - Output of Seller; Requirement of Buyer; Exclusive Dealing.
Section 440.2307 - Delivery in Single Lot or Several Lots; Payment.
Section 440.2308 - Place for Delivery of Goods and Documents of Title.
Section 440.2309 - Time of Performance; Contract Termination.
Section 440.2311 - Specification of Performance; Assortment and Shipment of Goods; Remedies.
Section 440.2312 - Warranties of Title; Freedom From Liens.
Section 440.2313 - Creation of Express Warranties by Seller.
Section 440.2314 - Implied Warranty; Merchantability, Course of Dealing, Usage of Trade.
Section 440.2315 - Implied Warranty; Fitness for Particular Purpose.
Section 440.2317 - Warranties; Cumulation and Conflict.
Section 440.2318 - Warranties; Third Party Beneficiaries.
Section 440.2319 - f.o.b. and f.a.s. Terms.
Section 440.2320 - c.i.f. and C. & F. Terms.
Section 440.2322 - Delivery Exship.
Section 440.2323 - Overseas Shipment; Bill of Lading, Form.
Section 440.2324 - No Arrival, No Sale Terms.
Section 440.2325 - Letter of Credit or Banker's Credit; Confirmed Credit; Definitions.
Section 440.2327 - Sale on Approval; Sale or Return; Special Incidents.
Section 440.2328 - Sale by Auction; Sale With Reserve; Forced Sale.