Quimbee logo
DMCA.com Protection Status
From our private database of 18,800+ case briefs...

United Bank Ltd. v. Cambridge Sporting Goods Corp.

New York Court of Appeals
360 N.E.2d 943 (1976)


Duke Sports (Duke) agreed to manufacture boxing gloves for Cambridge Sporting Goods Corp. (Cambridge) (defendant). Duke financed the project with two Pakistani banks (plaintiffs). To ensure repayment of their loan, the Pakistani banks instructed Cambridge to obtain a letter of credit from Cambridge’s bank, Manufacturers Hanover Trust Company (Hanover Trust), to pay for the gloves. Hanover Trust issued the letter of credit to Duke. After the contract was executed, Duke asked for an extension of the manufacturing deadline. Cambridge said an extension was not possible and canceled the contract. A month later, the Pakistani banks sent documents to Hanover Trust claiming that the boxing gloves had been delivered to Cambridge. The Pakistani banks also included two drafts drawn by Duke, each payable to the Pakistani banks under the letter of credit. Cambridge inspected Duke’s glove shipment and discovered that the gloves were severely defective. Cambridge prevented Hanover Trust from paying the Pakistani banks. The Pakistani banks sued Cambridge, seeking payment under the letter of credit. The Pakistani banks argued that they were holders in due course of the drafts issued by Duke. As holders in due course, the Pakistani banks argued they were entitled to payment of the drafts, even if Duke had defrauded Cambridge. The lower courts agreed with the Pakistani banks, finding that the banks were holders in due course and entitled to payment. Cambridge appealed to the New York Court of Appeals, the highest court in the state.

Rule of Law


Holding and Reasoning (Gabrielli, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 498,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 498,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 18,800 briefs, keyed to 985 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial