A LETTER OF CREDIT CAN BE EITHER “REVOCABLE” OR “IRREVOCABLE”. FEW...

5. A letter of credit can be either “revocable” or “irrevocable”. Few exporters will accept

a revocable letter of credit, so the plain expression “letter of credit” generally means

the irrevocable kind. The word “irrevocable”, therefore, should not always appear in

the text of the credit and of the contract. Right or wrong?

A. Wrong

B. Wrong, because it should always appear in the context of the credit and of the

contract according to the ICC’s rules

C. Right

D. Right, because in the absence of a clear indication, letter of credit are deemed to

be irrevocable.