Both of firms have been merged fraud relating to breach of the contract , due to the late payment under Article 25 by buyer and Article 30 states that obligation of the seller must deliver the goods over of document as requires by the contract. The contract between Arukan and Toowoomba Ore Testing are governed by Queensland Australian Law. Hong Kong Bank cannot rely under Article79. Arukan and China Iron can best combine to waive their respective breaches and modify the contract to their benefit under Article 29, by the fact that Arukan could give out a new certificate of purity and withdraw the previous letter of credit and also China Iron make a payments on time.