“ARTICLE 14 DISCLAIMER ON DELAYS, LOSS IN TRANSIT AND TRANSLATION”
a. Banks assume no liability or responsibility for the consequences arising out of delay and/or loss in transit of any message(s), letter(s) or document(s), or for delay, mutilation or other error(s) arising in transmission of any telecommunication or for error(s) in translation and/or interpretation of technical terms.
Explanation: This clause specifies that banks are not responsible for any issues that arise due to delays, losses, or errors during the transmission or handling of messages, letters, or documents. This includes delays or loss that occur during the transit of documents, any damage or errors that happen in the process of telecommunication, and mistakes in the translation or interpretation of technical terms.
Example: Suppose a bank sends an important letter regarding a trade transaction to another bank. If the letter is delayed or lost during delivery, the originating bank is not held responsible for any consequences arising from this delay or loss. Additionally, if there is a technical error in transmitting the message over a telecommunication network or if there is a misunderstanding due to incorrect translation of technical terms in the message, the bank is not liable for those errors.
b. Banks will not be liable or responsible for any delays resulting from the need to obtain clarification of any instructions received.
Explanation: This clause indicates that banks are not liable for delays that occur if they need to seek additional clarification or instructions from the parties involved. If there is any ambiguity or lack of clarity in the instructions received, and the bank needs to request further information to proceed, any delays that result from this process are not the bank’s responsibility.
Example: Imagine a bank receives a set of instructions from a client regarding a letter of credit. If the instructions are unclear or incomplete, the bank may need to contact the client for further details. If this request for clarification causes a delay in processing the transaction, the bank is not responsible for any resulting delays or issues.