Tag

Guarantees

A guarantee precedent

Jan 2014 here’s a precedent you could use for a clause to slot into an agreement between you and a customer. Get legal advice on it before you use it. And of course make sure that it fits the agreement (eg getting the parties’ details right; you, for example, are ‘us’)....

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...

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...