§ 2325. "Letter of credit" term; "confirmed credit."
(a) Failure to furnish letter.--Failure of the buyer seasonably to furnish an agreed letter of credit is a breach of the contract for sale.
(b) Effect of delivering letter.--The delivery to seller of a proper letter of credit suspends the obligation of the buyer to pay. If the letter of credit is dishonored, the seller may on seasonable notification to the buyer require payment directly from him.
(c) Definitions.--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 financial market of the seller.
Cross References. Section 2325 is referred to in section 2103 of this title.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 23 - General Obligation and Construction of Contract
Section 2301 - General obligations of parties
Section 2302 - Unconscionable contract or clause
Section 2303 - Allocation or division of risks
Section 2304 - Price payable in money, goods, realty or otherwise
Section 2305 - Open price term
Section 2306 - Output, requirements and exclusive dealings
Section 2307 - Delivery in single lot or several lots
Section 2308 - Absence of specified place for delivery
Section 2309 - Absence of specific time provisions; notice of termination
Section 2310 - Open time for payment or running of credit; authority to ship under reservation
Section 2311 - Options and cooperation respecting performance
Section 2312 - Warranty of title and against infringement; obligation of buyer against infringement
Section 2313 - Express warranties by affirmation, promise, description or sample
Section 2314 - Implied warranty: merchantability; usage of trade
Section 2315 - Implied warranty: fitness for particular purpose
Section 2316 - Exclusion or modification of warranties
Section 2317 - Cumulation and conflict of warranties express or implied
Section 2318 - Third party beneficiaries of warranties express or implied
Section 2319 - F.O.B. and F.A.S. terms
Section 2320 - C.I.F. and C. & F. terms
Section 2322 - Delivery "ex-ship."
Section 2323 - Form of bill of lading required in overseas shipment; "overseas."
Section 2324 - "No arrival, no sale" term
Section 2325 - "Letter of credit" term; "confirmed credit."
Section 2326 - Sale on approval and sale or return; rights of creditors
Section 2327 - Special incidents of sale on approval and sale or return