revocable letter of credit (L/C)
Definition
L/C that may be amended or canceled any time by the buyer (the account party) without the approval of the seller (the beneficiary). Since it does not provide any protection to the seller, it is rarely used. Some banks even refuse to issue such L/Cs because of the fear of getting involved in the possible litigation between the buyer and the seller.
revocable letter of credit (L/C) is in the Accounting & Auditing, Banking, Commerce & Finance, International Trade & Relations and Purchasing & Procurement subjects.
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