• The financier may require the exporter to comply fully with L/C conditions.
• Loss caused by the exporter's negligence or misconduct is borne by the exporter.
• Genuine business loss unrelated to negligence remains a partnership risk.
• Personal fault and normal business risk must therefore be separated.
The practical test is to separate normal business loss from loss caused by negligence or misconduct. Genuine investment loss follows the relevant capital rule, while a party remains responsible for loss caused by its own fault.