Payment Irrevocability means that after order confirmation, the buyer cannot unilaterally revoke or modify the payment obligation, commonly found in letters of credit (L/C) or contract terms. Usage scenarios: 1) When a letter of credit is explicitly marked 'irrevocable', the issuing bank may not modify or revoke it without authorization; 2) When a contract stipulates that advance payment or deposit is irrevocable, protecting the seller from inventory preparation risks. Notes: It must be explicitly written into the contract or L/C, otherwise it may be deemed revocable; irrevocability does not equal unconditional payment—documentary requirements must still be met; the difference from a 'revocable L/C' is that the latter can be unilaterally modified by the issuing bank. Unlike a 'payment guarantee', irrevocability emphasizes non-withdrawability rather than merely a promise to pay. Foreign trade practitioners should ensure terms are clear to avoid ambiguity.
📝 Examples
1. The letter of credit opened by the buyer under this contract is an irrevocable L/C, and the issuing bank must pay upon receipt of compliant documents. (Note: Emphasizes the irrevocability of the L/C to protect the seller's right to receive payment.) 2. After the buyer pays a 30% advance payment, this payment obligation is irrevocable; even if the order is canceled, the advance payment will not be refunded. (Note: Used in advance payment scenarios to bind the buyer from arbitrarily revoking payment.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner