5 Dec 1995
DG BANK DEUTSCHE GENOSSENSCHSFTS BANK v. BANK OF CREDIT AND COMMERCE HONG KONG LTD. (IN LIQUIDATION)
- Citation
- DG BANK DEUTSCHE GENOSSENSCHSFTS BANK v. BANK OF CREDIT AND COMMERCE HONG KONG LTD. (IN LIQUIDATION)
- Court
- Court of First Instance
- Case number
- HCCL138/1995
The court held that the defendant had entered into a binding obligation to pay the plaintiff the net proceeds of the drafts either by virtue of the confirming bank's undertaking under the letters of credit (UCP Article 10(b)(iv)) or by an independent contract formed when the defendant unequivocally agreed to process the documents and remit net proceeds to the plaintiff; there was sufficient consideration (the plaintiff's endorsement and surrender of drafts), no evidential basis that the plaintiff acted merely as agent for the beneficiary, and reliance by the plaintiff made the defendant's den…