International letter of credit is a letter that sent by an international bank states that a specified amount will be paid on the seller as long as the buyer paid the necessary amount to an international bank or by a seller coming from abroad. It indicates the conditions of the agreement and penalties that a buyer may get if he/she breech the contract. Here is a sample:
To: Mr. Spong Bob
#12 Condominium Heights, Venice
Italy, France, #72
From: Bank of Europe
England, Great Britain, #98
Dated: April 26, 2015
Re: Agreement on Payment
Dear Mr. Bob,
Good day Sir, we would like to inform you about your transaction on buying an imported Brooklyn Style Harley Davidson Motor from Harley Davidson Corporation Kansas, USA which worth $50,000 last April 21, 2015. You have agreed last week on the mode of payment for the transaction by opening an account to our bank to pay the said amount on the item you requested via our branch in Kansas USA, we would like to reiterate to you for the sum total of all payment on your transaction including the delivery charge and import tax is worth $ 70,000.
As of now you have a total deposit on your account worth $25,000, and your monthly payment is $5,000 with the net interest of $ 8,000 for the whole payment. The whole conditions of the transaction are at your perusal along with this letter and the consequences if you fail to fulfill all the conditions especially the claiming of all your deposit in the bank if you cancel the transaction. The bank is not liable for any problems of the items you purchased is defective or damaged. Please feel free to visit our bank for any clarifications or queue, you can also contact us at our number (869)93837-3947.
Bank of Europe