P - Performance and demand guarantees
24/3/15
MAURI GARMENTS TRADING & MARKETING LTD v MAURITIUS COMMERCIAL BANK LTD [2015] UKPC 14
By separate contracts, the claimant agreed to supply raw materials to, and to buy shirts from, a supplier. The contract for the supply of shirts required the claimant to provide a first demand bank guarantee for monies due but not paid to the supplier. The defendant bank called on the guarantee and was paid. The claimant claimed the demand had, to the knowledge of the defendant bank, been inflated by failing to take into account monies due for raw materials supplied by the claimant. A claim in tort by the claimant against the defendant bank was dismissed. No duty in tort was owed to the claimant by the defendant bank. Any cross-claim which the claimant had for payment for raw materials was under a separate contract and irrelevant to any claim for payment under the guarantee.
11/10/13
DOOSAN BABCOCK LTD v COMERCIALIZADORA DE EQUIPOS Y MATERIALES MABE LIMITADA [2013] EWHC 3010 (TCC)
Considers the threshold test for granting interim injunctive relief in relation to bonds/guarantees [39].
7/12/12
WUHAN GUOYU LOGISTICS GROUP CO LTD v EMPORIKI BANK OF GREECE SA [2012] EWCA Civ 1629
An instrument is presumed to be a performance guarantee or on-demand bond if it (a) relates to an underlying transaction between parties in different jurisdictions, (b) was issued by a bank, (c) contains an undertaking to pay "on demand" (with or without the words "first" and/or "written") and (d) does not contain clauses excluding or limiting the defences available to a guarantor.