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KAYODE ESO, J.S.C. (Delivering the Leading Judgment): This appeal involves a most important aspect of commercial law. It deals with Bankers Commercial Credits, an aspect of law that arises in connection with international trade. From in between the First World War, and the Second World War, and more so, since the second world war, financing of international trade has been done mainly through Bankers. This is necessary, especially as international commerce has been instrumental in "squeezing" the world into a commercial size, and thus making international trade and commerce indeed much easier than domestic commerce. As far back as towards the end of the second world war, Scrutton L.J. had stated the principle of confirmed credit with adequate clarity. The Lord Justice said, of commercial credit, in Guaranty Trust Company of New York v. Hannay (1918) 2 KB 623.
"The enormous volume of sales of produce by a vendor in one country to a purchaser in another has led to the creation of an equ…