Where there is no underlying contract between the account party and the beneficiary of an irrevocable standby letter of credit, the beneficiary is entitled to draw down on the credit upon a bona fide belief that the conditions are satisfied, and the account party has no restitutionary claim based on failure of consideration even if the certified conditions were not in fact met. A drawdown certificate in such circumstances amounts to no more than a representation of the beneficiary's bona fide belief and cannot constitute misleading or deceptive conduct. The question whether restitution might be available on the basis that payment under a letter of credit is provisional pending ascertainment of the truth of non-documentary conditions was left open.
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