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leslie
Joined: 12 Oct 2005
Posts: 244
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 Posted: Mon Apr 03, 2006 5:26 am Post subject: an excerpt from a letter of credit |
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Hi,
The following is an excerpt from a letter of credit. I don't know what it means. Could anyone please help me paraphrase it as simple as it can be so that a layman like me would understand? Thanks very much. It's urgent.
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| ''EVIDENCE OF APPROVAL STAMP ON INVOICE BY AUTHORIZED SIGNATORY IS TO BE CONSTRUED AS THE APPROVED PRODUCT LIABILITY INSTURANCE POLICY BEING ON FILE WITH XXX COMPANY'' |
leslie |
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Harmony
Joined: 23 Mar 2006
Posts: 140
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| Posted: Mon Apr 03, 2006 5:53 am Post subject: |
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Hi Leslie,
I hope this is simple enough. If it's still too confusing let me know and I'll try again. 
Everyone should understand that an �approved� stamp on an invoice will also mean that the product has been insured and an actual copy of the insurance policy is in the file at XXX company.
Harmony |
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leslie
Joined: 12 Oct 2005
Posts: 244
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| Posted: Mon Apr 03, 2006 7:12 am Post subject: an actual copy? |
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Hi Harmony,
Thank you so much for your prompt reply. This question was asked by a friend of mine. But I had no idea of anything related to banking and commerce in English. That's why I posted my question here.
I have 2 questions to ask:
1. When you said 'an actual copy' of the insurance policy, did you mean 'the original copy' of the insurance policy, right? It is not a xerox copy, am I right?
2. Could you please analyze the sentence pattern? It's a bit confusing for me to break the sentence.
Thank you very much.
Leslie |
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Harmony
Joined: 23 Mar 2006
Posts: 140
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| Posted: Mon Apr 03, 2006 3:19 pm Post subject: |
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Hi Leslie,
By "actual" I meant that no one needs to rely upon anyone's word that the insurance policy exists because there is a "hard copy" (a physical piece of paper, not a computer document or a verbal statement) in the file. In some cases it could be a xerox or a "file copy" which was one of several duplicates included with the original document, but in this case it says "THE" policy so it most likely means the original policy. If this point is important to your friend he or she should ask to have it verified.
OK now we'll go on to that miserable sentence! 
| Quote: |
| EVIDENCE OF APPROVAL STAMP ON INVOICE BY AUTHORIZED SIGNATORY IS TO BE CONSTRUED AS THE APPROVED PRODUCT LIABILITY INSURANCE POLICY BEING ON FILE WITH XXX COMPANY |
This sentence is typical "legalese". I'm not surprised you had trouble with it. I did. There are words omitted and the predicate is poorly written.
Let's take a look at it, one piece at a time:
Evidence is something that gives an indication or proof.
In this case the evidence is the signature of a person (the signatory) who has the authority to approve the invoice. The signature is evidence that the invoice has been approved.
So we've picked apart the complete subject:
Evidence of - - - -(an) approval stamp - - - - on (the) invoice - - - by (the or an) authorized signatory[/i]
Now we'll take a look at the predicate:
[The signature ] . . . . is to be construed (is to be interpreted) - - - - -as the approved product liability insurance policy - - - - being on file - - - - with XXX Company.
Unless I'm wrong, I think you can now see the meaning of this section even though it is poorly written.
The signature on the invoice not only approves the invoice, but also guarantees that the product is insured and the policy is in our file.
So, how did I do? Is it clearer now? I know it's clearer to me!  |
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leslie
Joined: 12 Oct 2005
Posts: 244
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| Posted: Mon Apr 03, 2006 5:18 pm Post subject: |
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Hi Harmony,
Thank you for your thorough explanation. I understood the sentence right after your first explanation. It just that I could not see why the pattern--A is construed as B--can contain so many things. In this case, Evidence ....is to be construed as.....the....insurance policy, evidence is equal to be the policy? that puzzled me.
According to your second explanation, can I read it as follows:
The signature is also stamped on the ducument or paper of the insurance policy?
Thanks again.
Leslie |
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Harmony
Joined: 23 Mar 2006
Posts: 140
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| Posted: Mon Apr 03, 2006 6:54 pm Post subject: |
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Hi Leslie,
| leslie wrote: |
| It just that I could not see why the pattern--A is construed as B--can contain so many things. In this case, Evidence ....is to be construed as.....the....insurance policy, evidence is equal to be the policy? that puzzled me. |
It certainly is a puzzle and that's what I meant when I said it was poorly written. 
| leslie wrote: |
According to your second explanation, can I read it as follows:
The signature is also stamped on the document or paper of the insurance policy? |
Not quite. I don't know the details of this situation, but I'm assuming this is a wholesaler selling to a reseller. The single signature on the invoice serves the dual purpose of approving the validity of the invoice (the list of goods shipped and the cost, including shipping or other charges) and providing the reseller with an assurance that the wholesale company has purchased an insurance policy (which is physically present in the company's files) to protect the reseller if he is sued by a consumer who buys the product from him and later suffers an injury or other type of loss or injury due to a malfunction or defect in the product.
To put it another way: The person whose signature is on the invoice is saying, "With my signature I'm certifying that this bill for the stuff we sold you is correct AND with the same signature I'm also attesting to the fact that my company (the XXX Company) has purchased an insurance policy (from the ABC Insurance Company) to protect our company and you in the event that we are both sued by someone who buys our product from you and is later injured because our product was defective or unsafe in its design. If you want to see the policy for yourself you can come to our company's office and take a look at it. It's right here in a file in our office."
It's as if the invoice had a list of the goods and the prices followed by a statement such as, "We bought an insurance policy to protect you if you're sued and it's here in our office if you want to see it for yourself" and the one signature came at the end to attest to everything above.
From the way it's written it seems likely that the XXX Company added that statement to the very bottom of their standard invoice form (below the signature) so they wouldn't have to redo the whole thing.
I'm sorry if this was a bit redundant. It's undoubtedly more explanation than you needed. I have a tendency to go on and on until someone responds and there's no way you can do that until you read this, so I have to try to remember to stop myself! 
Yawn! I'm heading for bed! I hope you're having nice weather on the other side of the globe. Tell your little one that his Mommy's friend from across the ocean says "hello"!
Harmony |
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leslie
Joined: 12 Oct 2005
Posts: 244
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| Posted: Mon Apr 03, 2006 9:39 pm Post subject: |
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Hi Harmony,
I cannot thank you enough. Now I'm completely clear. I appreciate it so much. Your explanation is absolutely not reduant. It's definitely helpful. You have no idea how good I feel when I finally got this clear because of your help. Sorry for being a person that keeps asking questions! I hope I wasn't hindering your sleep. I wish you sweet dreams. Right at the moment, my son is taking his nap so that I have time to reply and say "thank you" to you. 謝謝你, Harmony! (xie4xie4 ni3, Harmony).
Leslie |
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Harmony
Joined: 23 Mar 2006
Posts: 140
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| Posted: Wed Apr 05, 2006 2:52 pm Post subject: |
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You're welcome Leslie! 确切查找, Leslie! (Bu2 ke4 qi, Leslie)
I enjoy answering your questions so please feel free to continue to ask them.
Harmony |
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