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the payment to the seller. ◆ D/P at __ days after sight (date). Under D/P at __ days after sight (date), the buyer shall duly accept the documentary draft drawn by seller at __ days’ sight upon first presentation and make payment on its maturity. The shipping documents are to be delivered against payment only. Note: Under D/P, the buyer can not obtain the shipping documents if he does not make the payment, should this happen, the seller need first negotiate with the buyer, and at the same time, he may consider if he can sell the goods to others or to ship the goods back, usually at his own cost. D. Documents Against Acceptance (D/A) Under the D/A, the buyer can get the shipping documents from the collecting bank after he has duly accepted the draft. This is only applicable to time draft. This is greatly convenience to the buyer, but it means much more risk for the seller, for once he has delivered the shipping documents, he will have lost his title over the goods. D/A means more risks for the seller, for the buyer might refuse to pay after he has accepted the draft and taken the delivery of the goods. Certainly the seller might sue the buyer, but as is often the case, the buyer claims bankruptcy and then the seller can do nothing to remedy the situation. III. Letter of Credit (L/C) As we can see, neither remittance nor collection is a safe means for the settlement of payment in international trade as both of them rely on mercial credit. With the development of international trade, bank credit gets involved in the settlement of payment which provides it with more secure means. L/C is the major means thus developed is now most often used in the settlement of payment in international trade. A. Definition ? In international trade practice, a L/C can be seen as a document by which a bank, upon the request of an importer, promises to effect the payment of the goods to the exporter. ? Function of L/C: The L/C solves the possible problems arising from the distrust between the seller and the buyer. Under L/C, the sell