The law is a jealous mistress, and requires a long and constant courtship.

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Legal Definitions - irrevocable letter of credit

LSDefine

Definition of irrevocable letter of credit

An irritant clause is a specific provision found within a legal document, such as a deed, will, or contract, that states if a particular prohibited action occurs, then that action itself, or a right granted by the document, or even the entire document, is automatically rendered void or invalid.

Essentially, it's a self-executing condition: if you perform the prohibited act, then the specified nullification happens automatically, without the need for further legal action to declare it void.

  • Example 1: Property Deed Restriction

    Imagine a historical preservation society sells a parcel of land to a developer. The deed of sale includes an irritant clause stating that if the developer ever demolishes the historic 19th-century manor house located on the property, the sale of the land will automatically become null and void, and ownership will revert to the historical society. If the developer proceeds with demolition, the irritant clause immediately invalidates the sale, and the property legally returns to the society.

  • Example 2: Conditional Inheritance in a Will

    Consider a will where a wealthy individual leaves a significant sum of money to their nephew, but with an irritant clause attached. This clause specifies that if the nephew ever attempts to sell the unique family heirloom watch (which the will also bequeathed to him), his entire monetary inheritance from the will is automatically forfeited and will instead be distributed to a designated charity. Should the nephew list the watch for sale, the irritant clause instantly nullifies his right to the monetary inheritance, redirecting it to the charity.

  • Example 3: Commercial Lease Agreement

    A landlord enters into a commercial lease agreement with a tenant for a retail space. The lease contains an irritant clause stating that if the tenant uses the premises for any purpose other than operating a coffee shop, the lease agreement is automatically nullified, and the tenant must vacate the property immediately. If the tenant decides to convert the space into a tattoo parlor, the irritant clause automatically voids the lease, ending their tenancy without the need for the landlord to initiate a separate legal process to terminate it.

Simple Definition

An irrevocable letter of credit is a financial commitment issued by a bank that guarantees payment to a beneficiary, provided the terms and conditions specified in the credit are met. Once established, it cannot be canceled or modified by the issuing bank or the applicant without the express consent of all parties, especially the beneficiary.

If we desire respect for the law, we must first make the law respectable.

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