1 A claim in law and fact sufficient to form the basis of a valid lawsuit, a right of action is the legal right to sue, a cause of action is the composite of facts that gives rise to a right of action BACK TO TOP
Legal grounds for obtaining a judgment against a defendant When the issuer of a credit wrongly repudiates the credit obligation or wrongly dishonors the beneficiarys draft, the beneficiary has a cause of action against the issuer Similarly, when a beneficiary breaches his letter of credit warranty by presenting materially fraudulent documents to the issuer, the issuer has a cause of action against the beneficiary