In this webinar, we cover two recent cases touching on whether a bank is required to make payment under a letter of credit: Winson Oil Trading Pte Ltd v Oversea-Chinese Banking Corporation and another [2023] SGHC 220 and Credit Agricole Singapore Branch v PPT Trading Energy Co. Ltd [2023] SGCA(I) 7
Who should bear the risk of fraud in a commodities trade to be paid by letter of credit? The LC issuing bank or the reckless beneficiary making representations to the bank about the trade it seeks payment for without regard to the truth or falsity of its statements to the bank and the documents it presents? Can the LC applicant’s fraud entitle a bank to decline payment under an LC? These themes have been explored recently by our courts as the meltdown of traders like Hin Leong and Zenrock led banks to contend with LC claims in respect of trades with questionable features.