The opening of a confirmed letter of credit constitutes a bargain between the banker and the vendor of goods which imposes on the banker an absolute obligation to pay. Duties of a bank under a letter of credit are created by the document itself, but in any case it has the power and is subject to the limitation which are given or imposed by it, in the absence of appropriate provisions in the letter of credit. The banker owes a duty to the buyer to ensure that the documents tendered by the sellers under a credit are complied with.
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