This document discusses a case involving a letter of credit used for payment in an international sales transaction between a French company and a Shanghai company. The Shanghai company obtained an irrevocable letter of credit from its bank, Bank of China, for $200,000. When the French company shipped the goods and submitted the required documents to the negotiating bank in Marseille, payment was made. However, the cargo was lost at sea before reaching its destination. While the buyer seeks to avoid payment due to the lost goods, the document explains that the letter of credit transaction is independent of the sales contract, so the bank must honor its payment obligations if the documents comply. It suggests the buyer may be able to claim compensation from the seller