Credit Support in Sale of Goods Transactions | Practical Law

Credit Support in Sale of Goods Transactions | Practical Law

This Practice Note compares the different ways the parties to a sale of goods transaction can mitigate their risks, including the use of third-party credit support.  These include guarantees, commercial letters of credit, and standby letters of credit.  This Practice Note also contains a general discussion of other types of credit support that are less commonly used in traditional sale of goods transactions, such as surety bonds (including performance bonds, payment bonds, and bid bonds), as well as comfort letters and keep-well letters.

Credit Support in Sale of Goods Transactions

Practical Law Practice Note 4-523-3894 (Approx. 16 pages)

Credit Support in Sale of Goods Transactions

by Practical Law Commercial Transactions
MaintainedUSA (National/Federal)
This Practice Note compares the different ways the parties to a sale of goods transaction can mitigate their risks, including the use of third-party credit support. These include guarantees, commercial letters of credit, and standby letters of credit. This Practice Note also contains a general discussion of other types of credit support that are less commonly used in traditional sale of goods transactions, such as surety bonds (including performance bonds, payment bonds, and bid bonds), as well as comfort letters and keep-well letters.