Credit Support in Sale of Goods Transactions | Practical Law
This Practice Note compares the different ways the parties to a sale of goods transaction can mitigate their risks, including the use of third-party credit support. These include guarantees, commercial letters of credit, and standby letters of credit. This Practice Note also contains a general discussion of other types of credit support that are less commonly used in traditional sale of goods transactions, such as surety bonds (including performance bonds, payment bonds, and bid bonds), as well as comfort letters and keep-well letters.