Bills of Lading and Bankers Documentary Credits
4
THE CONTRACT OF SALE
THE CONTRACT OF SALE
4.1
The sale contract is often referred to as the underlying transaction, because for documentary credits at least, it is from sale contract obligations that everything else is derived. It determines the nature of the buyer’s payment obligations. It also determines the seller’s documentary obligations, and the obligation of one or both parties to make appropriate provision for carriage and insurance.