Legal Definitions - presentation

In a legal context, presentation primarily refers to the formal act of delivering specific documents to a designated party, such as a bank or other issuer, to fulfill the conditions of an agreement and initiate a required action, often a payment. This term is most commonly encountered in international trade and finance, particularly concerning letters of credit or other financial instruments.

Historically, in ecclesiastical law, "presentation" also referred to the act by which a patron nominated a person to fill a vacant church office or benefice, submitting their choice to the bishop for approval.

Here are examples illustrating the modern commercial use of presentation:

• International Trade and Letters of Credit:

  Imagine a furniture manufacturer in Italy ships a large order of custom-made tables to a hotel chain in the United States. Payment for this order is secured by a letter of credit issued by the hotel's bank. To receive payment, the Italian manufacturer must gather all the specific documents required by the letter of credit—such as the bill of lading (proof of shipment), commercial invoice, and a certificate of origin—and formally deliver them to their bank (or the issuing bank) within the stipulated timeframe. This act of delivering these precise documents to trigger the payment is known as the presentation. Once the bank verifies that the documents strictly comply with the terms of the letter of credit, it will process the payment to the manufacturer.

• Financial Instruments (e.g., Bond Coupons):

  Consider an investor who owns a physical bond certificate that pays interest annually. This bond has several detachable coupons, each representing a specific interest payment due on a certain date. To receive an interest payment, the investor must detach the relevant coupon for that payment period and formally submit it to the bond's issuer or a designated paying agent. This formal submission of the coupon to initiate the interest payment is a presentation.

• Demand Under a Guarantee:

  Suppose a small business owner provides a personal guarantee to a bank for a business loan. If the business defaults on its loan payments, the bank has the right to demand payment from the owner under the guarantee. To enforce this, the bank must formally deliver specific documents to the owner, such as a notice of default and a formal demand for payment, as outlined in the guarantee agreement. This formal delivery of the required documents to the guarantor to initiate the action (payment) is a presentation.