Page:Harvard Law Review Volume 32.djvu/56

22 22 HARVARD LAW REVIEW are held; at most this could only be inferred from the authority to draw on the issuer for the account of the holder. What is most notable in this type is the care with which the authority to draw upon the issuer is brought within the terms of Coolidge v. Payson as interpreted in later cases in the Federal Supreme Court. Simi- marily stated letters of this type contain (a) a statement by way of caption, but not in their body or text, that they are "con- firmed" or '"irrevocable;" (6) an authority to the addressee to draw on the issuer for the account of the holder with a precise de- scription of the drafts to be drawn. Looking only at this second element, these letters are clear enough; but they raise at once the question why if this is all there is to them, should the issuer say at the top of the instrument that it is "confirmed" or "irrevocable?" Does he mean to add something to the second element, and if so, what? In business understanding the answer is obvious, but in law we must inquire. In a third type the form of letter suggests a contract between the holder and the issuer for the benefit of the addressee whereby the addressee is to be paid by the issuer on condition of his per- forming the terms of a contract which he has made with the holder. The letter takes the immediate form of a notification to addressee of the former contract.^ Unless, because of the obvious disad- vantages involved the courts were to twist such letters into offers, as we have seen them do where the instrument in form used lan- guage importing guarantee or suretyship, there is Uttle in the text of this type of letter to lay hold of for any other common-law theory than one of notification of a contract between holder and issuer for the benefit of addressee. But such letters are also usually captioned, or in collateral correspondence are stated to be "con- be made against [statement of documents required]. Drawing must clearly specify the number of this credit. [Signature of Issuer] ^ Following is an example: [Addressee]: [No.] " [Date] We have received instructions from [holder] to pay you against your receipt in triplicate any sum or sums up to [amount of credit] against shipment of [terms and purposes of the credit]. This letter to be presented with your receipts and documents. [Signature of Issuer] Sometimes a contract between holder and issuer is expressly stated, e. g., "we have received instructions from [holder] with whom all necessary arrangements have been made"; also such forms may include an authority to draw.