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Simple English definitions for legal terms
LC
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A quick definition of LC:
LC is an abbreviation that stands for two things: Letter of Credit and Letter of Credence. It is a document that helps people buy and sell things safely. It is like a promise from a bank that they will pay for something if the buyer cannot. It is also sometimes written as L/C.
A more thorough explanation:
LC
LC is an abbreviation that can stand for two different things:
It is also sometimes written as L/C.
1. A company wants to buy goods from another country, but they don't know the supplier well enough to trust them. So, they ask their bank to issue a letter of credit to the supplier. This means that the bank promises to pay the supplier if they provide the goods as agreed. The letter of credit gives the company some security that they will get what they paid for.
2. A diplomat is sent to another country to represent their government. They bring a letter of credence from their own government to show that they have been officially appointed. This helps them to establish their credibility and authority in the new country.
LC can refer to either a letter of credit or a letter of credence. A letter of credit is a document issued by a bank that promises to pay a supplier if they provide goods or services as agreed. This can give the buyer some security that they will get what they paid for, even if they don't know the supplier well. A letter of credence, on the other hand, is a document that shows someone has been officially appointed to represent their government in another country. This can help them to establish their credibility and authority in the new country.