LML4807 Assignment 1 2025 | Due 29 March 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.