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International Trade vocabulary · Payment Methods and Letters of Credit

Irrevocable

Meaning in international trade, with examples

/ɪˈrevəkəbəl/adjectiveCommon term

In international trade, irrevocable means: Describes a promise, such as a letter of credit, that cannot be changed or cancelled without the agreement of all the parties concerned.

In Turkish: dönülemez, gayri kabili rücu, geri alınamaz

How it is used

Most often heard in 'irrevocable letter of credit' and 'irrevocable payment instruction'. Under UCP 600 every credit is irrevocable even if the word is missing, but many L/C texts still state it.

Example sentences

  1. We only accept an irrevocable letter of credit confirmed by a first-class bank.

  2. The instruction is irrevocable once the bank has processed it.

Common collocations

  • irrevocable letter of credit
  • irrevocable undertaking
  • irrevocable payment order
  • irrevocable and confirmed
  • letter of creditA bank's written promise to pay the seller a set amount, provided the seller presents documents that meet the exact conditions of the credit within the stated time.
  • confirming bankA bank, usually in the seller's country, that adds its own promise to pay to a letter of credit, so the seller does not depend only on the issuing bank.
  • UCP 600Uniform Customs and Practice for Documentary Credits: the ICC rules, in force since 2007, that most banks use for issuing and handling letters of credit.
  • issuing bankThe buyer's bank that opens a letter of credit and gives its own promise to pay if the seller presents complying documents.

More terms: Payment Methods and Letters of Credit

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