Introduction

Letter of Credit at sight is not too dissimilar to a Letter of Credit. However, there is a minor difference. A Letter of Credit at Sight, unlike the Letter of Credit, is meant to be payable immediately, after all the requirements of the credit, are met by the seller. It is payable immediately once the conditions of payment are met. Once it is given, it is then upon the seller to perform the necessary actions, which usually involve some verification and presentation of specific types of documents from the seller to avail the amount as agreed upon with the buyer.

A letter of credit at sight must contain all the necessary information which include, the details of the payment, the payment amount, the issuing bank and the person it is addressed to. It must be explicitly stated that it is a letter of credit at sight to differentiate it from a letter of credit.

Sample Letter

Ed Woodward

CEO

Manchester United

England

United Kingdom

DD/MM/YYYY

Mohammed Mruphy,

Finance Manager, Manchester United

United Banking Council, 2657 Violet Row,

Dabmar, NY, 21446-7344, US, (320) 557-24578
AMOUNT: $96,000,000

APPLICANT:

Manchester United,

Sir Matt Busby Way

Old Trafford

Manchester

M16 0RA

UK (0) 161 868 8000

BENEFICIARY:

Athletico Madrid

Virgen del Puerto,

67 – 28005 Madrid

Spain

LETTER OF CREDIT (at sight) ISSUED BY:

United Banking Council, 2657 Violet Row,

Dabmar, NY, 21446-7344, US, (320) 557-24578

RECEIVING BANK:

Bank of Spain, 10 Corporale Square, Madrid

The following is a Letter of Credit (At Sight). stating the terms of Agreement and mentioning the payment details between Athletico Madrid Football Club and Manchester United Football club for the sale of center forward Antoine Griezman.  The agreement was made between the two clubs, last Friday, i. e August 24th at the club’s resident between MR Woodward and Mr. Cerezo. The document certificates are attached here forth.

The club is pleased to acquire the services of such a highly regarded striker who is considered by many as World class and who the manager believes is world class. To that extent, we feel it is justified that the transfer value, although large, be met. We are confident we can recoup the amount in Shirt sales and other merchandise, and we are sure the club will reach new heights after he combines his quality with that already present in the current squad.
This should now be treated as an instruction to provide Athletico Madrid with 95,000,000 USD for the sale of Antoine Griezmann upon receipt of the necessary documentation.

Please note that the medical has been completed, and the player has agreed to terms with us, the contract will only be considered as signed after the payment is made.

With the urgency of the current situation, the payment must be made at sight, after the club furnishes the necessary documentation.

Signed by

Ed Woodward