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Aluminium Alloy Co. Ltd. Birmingham

INVOICING, ACCOUNTING AND SETTLEMENT OF ACCOUNTS. | ERRORS AND DISAGREEMENTS IN ACCOUNTS | EXTENSION OF CREDIT | Suggested opening lines for a first reminder | MISCELLANEOUS PHRASES AND SENTENCES ON ACCOUNTING | SHIPPING AND FORWARDING. | CHARTERING OF SHIPS | BANKING AND PAYMENTS IN FOREIGN TRADE. | Opening an account | Director J.J.Smith |


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79 Prince Albert St Birmingham B21 80J Great Britain

The Jameson Construction Co. Ltd. 10 August 1978

Durban S.A.

Dear sirs

We are very pleased to have your order and are able to confirm that all the items required are in stock. It is a pleasure to have the opportunity of supplying you and we are quite sure you will be satisfied both with the quality of our goods and our service.

Your choice of method of payment is quite acceptable to us, and we note that this will be by irrevocable latter of credit for a fun not exceeding £625, valid till September 15th. then we receive confirmation of this credit from The General Bank of South Africa, London, we will make up your order and await despatch instructions from your agent.

We assure you that this order and all further orders made will have our immediate attention.

Yours faithfully

(Signature)

THE ALUMINIUM ALLOY CO. LTD.

The Jameson Construction Co. open the L/C by writing to their bankers, The General Bank of South Africa, Durban, giving full instruc­tions, or by using a form something like that printed on page 116. That bank then notifies the credit to their branch in London. Meanwhile, The Aluminium Alloy Co. Ltd. receives the order and acknowledges it:

[4]

А сору ofthe form used by The Jameson Construction Co. is mean­while sent by the branch of The General Bank of South Africa in Durban to the London branch of this bank to authorise the opening of the credit.

The next step is, of course, for the London branch of The General Bank of South Africa to advise The Aluminium Alloy Co. that the credit is available (i.e. to confirm the credit). Here again, a form may be used. If, however, advice is by letter it would read something like this:

[5]

THE GENERAL BANK OF SOUTH AFRICA LONDON

16 August 1978

The Aluminium Alloy Co. Ltd.

Birmingham.

Dear Sirs

We have received instructions from The General Bank of South Africa, Durban, to open an irrevocable letter of credit for £625 in your favour and valid till 15 September, 1978. You are authorised to draw a 60 days' bill on us against this credit for the amount of your invoice after shipment of various metal fittings as list enclosed and consigned to The Jameson Construction Co. of Durban, South Africa, has been effected.

We shall require the documents listed below to be produced by you before we accept your draft, which should include all charges to Durban and our discount commission at 6%. It is also stipulated by the buyer that the goods covered by this draft be despatched in one shipment.

Yours faithfully

M. J. LOWE

Manager

(List of documents)

When the order has been collected, marked and shipped by the for­warding agent, who sends his note of charges with the insurance policy and the various other documents to The Aluminium Alloy Co. Ltd., the latter sends the documents to The GeneralBank of South Africa (Lon­don).

[6]


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CORRESPONDENCE BETWEEN BUYERS AND SELLERS| Confirmed Irrevocable Letter of Credit for £625 No.1

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