ABSTRACT
Cape Asbestos Co v Lloyds Bank (1921) Cape agreed to sell 30 tons of asbestos to a buyer in Poland, who, through their bank, instructed Lloyds to open a revocable credit in favour of the sellers. Lloyds informed Cape of this, adding that the credit was unconfirmed. Cape dispatched the first shipment of 17 tons and were paid for this through the credit. However, then the credit was revoked and although it was their practice to do so, Lloyds (by mistake) failed to inform Cape of the revocation. Cape dispatched the second shipment but Lloyds refused to pay. Cape sued Lloyds for the balance of the credit.
