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What’s the difference between a guarantee and a performance bond?

Sept 2012 It’s not always totally clear whether a particular document is a guarantee or a performance bond. Many guarantees include wording such as ‘we guarantee as primary obligor’, which is a bit inconsistent – you are either guaranteeing something or you are the ‘primary obligor’, ie the person with the primary obligation. A recent case made clear that you need to be very specific if what you want is a performance bond rather than a guarantee...

Expert determination of fair value – Cream Holdings case

Feb 2012 Where a number of people go into business together using  a company , they normally (should do anyway) have provisions in the company’s Articles of Association or in a shareholders agreement saying what happens if one of them leaves...

Guarantees – be careful!

Feb 2012 Most contracts you enter into can be terminated one way or another. They usually have inbuilt provisions saying that they last for a certain period or that the parties can terminate by giving a period of notice. And if they don’t the law is usually that either side can terminate by giving whatever notice period is ‘reasonable’. Guarantees often aren’t like that...

How to identify a company in financial difficulty

May 2010 Here is a note explaining the "decline curve" of a business, giving guidance on how to get the information to assess how serious a business' difficulties are, and providing an overview of what insolvency means and how to react to it...