DOCUMENTS RELATED TO PAYMENT. MATCHING EXERCISE.

DOCUMENTS RELATED TO PAYMENT.

                            

                                  MATCHING EXERCISE.

Match the terms with the definitions .Use the BusinessDictionary Web that you have in the UNIT if you need it.

1.Draft or Bill of Exchange(BE).	A.  Delivery of a stock (share) certificate by the seller's broker to the buyer's broker followed by conveyance of the title by recording the change in the stock (share) register.
2.Cash on Delivery (COD).	B. A written payment order from one party (the drawer) to another (the drawee) to pay a stated sum to a third party (the payee) either immediately  or on or before a specified date . When presented with shipping and/or title documents, it is called a documentary draft; without them, a clean draft.
3.Check/Cheque.	C.Instructions to transfer funds sent via paper and/or electronic means.
4.Collection	D. Written commitment to pay, by a buyer's or importer's bank  to the seller's or exporter's bank . It guarantees payment of a specified sum in a specified currency, provided the seller meets precisely-defined conditions and submits the prescribed documents within a fixed timeframe.
5.Comfort Letter.	E.  Credit relationship in which the buyer pays upon the receipt of goods, or on deferred payment basis.
6.Letter of Credit.	F. Process through which the global banking system acts on behalf of an exporter (or seller) to collect cash payment or a time draft from the importer (or buyer) in return for documents required for taking delivery of the ordered goods.
7.Open Account.	G.Payment method in which ordered goods are carried to the buyer's place but are handed over only upon full payment. Also called collect on delivery.
8.Payment Order.	H.  Demand draft drawn on a bank against its maker's (drawer's) funds, to pay the stated amount of money to the bearer or named party, on presentment (demand) on a stated date or after. Whereas in the US a check is always a negotiable instrument, in the UK practice (where check is spelled as 'cheque') it can be made non-negotiable by crossing (see crossed check).
9.Transfer	I. Parent-firm's letter, issued to reassure a subsidiary-firm's lender or supplier, that it would support the subsidiary in case of financial difficulties. Specific terminology used in the letter determines whether such assurance constitutes a binding contract or only a moral obligation