Yuchai Dongte Special Purpose Automobile Company Ltd v Suisse Credit Capital (2009) Ltd

Bank – Letters of credit. Yuchai Dongte Special Purpose Automobile Company Ltd's (Yuchai's) claim against Suisse Credit Capital (2009) Ltd (Suisse Credit) for payment pursuant to a letter of credit for US$3m, plus interest, succeeded. The Commercial Court held that, on the true construction of the contract, Suisse Credit was the issuer of the letter of credit (LC2), while another company, Suisse Bank Offshore Ltd, was a nominated bank, and that LC2 had not excluded the obligations of the issuer. Further, the court ruled that there had been no shared assumption to the effect that Suisse Credit was not the issuer and, therefore, there was no estoppel by convention.

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