Anglo-South American Trust Co. v. Uhe

The defendant Uhe applied to the plaintiff for a commercial letter of credit not exceeding $8,000 in his favor, payable at Managua, Nicaragua. The application provided, among other things: (1) That upon acceptance by the plaintiff of sixty-day drafts under the letter of credit, the defendant would on or before the due date of the drafts pay to the plaintiff the full amount thereof; (2) that in the event of the failure of the defendant to *643deliver the amount represented by the drafts, plaintiff could sell the goods covered by the documents and apply the proceeds against the amount drawn under…