LML4807 Assignment 1 2025

LML4807 Assignment 01 Semester 01 Briefly discuss the following prescribed case: Joint Stock Co Varvarinskoye v Absa Bank Ltd and Others 2008 (4) SA (SCA) The allocation of marks for the discussion is as follows: 1. Facts of the case (3) 2. Issue before the court (1) 3. The decision of the court (3) 4. A critical comment on the decision (3) Joint Stock Co Varvarinskoye v Absa Bank Ltd and Others 2008 (4) SA 287 (SCA) 1. Facts of the Case (3 marks) Joint Stock Company Varvarinskoye (the appellant), a foreign company, entered into a contractual agreement with a South African entity for the supply of mining equipment. To facilitate the transaction, an irrevocable letter of credit was issued by Absa Bank Ltd (the respondent bank) as a payment guarantee in favor of the supplier. Letters of credit are commonly used in international trade to ensure that sellers receive payment upon compliance with documentary requirements, regardless of disputes in the underlying contract¹. 1 Van der Merwe, C., et al. Contract: General Principles. 3rd ed., Juta, 2017.