What recourse is available to the seller in the event that a buyer does not honor a sight draft presented under a documents against payment collection?
The seller is left with three options in this situation. First, the seller can attempt to find another buyer for the product that has been shipped to the defaulting buyer. Second, the seller can repatriate or return to the home country the product that has been shipped to the defaulting buyer. Lastly, the seller can opt to dispose of the product that has been shipped to the defaulting buyer. The only other recourse available to a U.S. seller in a documents against payment collection where a foreign buyer fails to pay a draft presented by collecting bank is a protest action undertaken on behalf of a seller by the collecting bank.
Related Questions
- What recourse is available to the seller in the event that a buyer does not honor a sight draft presented under a documents against payment collection?
- What recourse is available to a seller if a buyer does not pay a time draft that the buyer has accepted?
- How do buyer and seller handle the payment for the item that is sold?
