Demand Guarantee check0 / 1 answered · 0 correct
Check 1
What can make a genuine claim fail under a guarantee?
Demands, Documents and Expiry
Understand what a beneficiary normally needs to present and why timing matters.
Demand wording
The guarantee states what a demand must contain, where it must be presented and whether supporting documents or statements are required.
Statement of breach
For a URDG 758 demand, the rules generally require a supporting statement indicating in what respect the applicant is in breach, unless the relevant rule exception applies. The actual guarantee wording must also be followed.
Expiry
A demand must be presented before expiry and at the place/method allowed by the guarantee. A valid underlying complaint does not rescue a late or non-complying presentation.
Extend or pay situations
Some guarantees allow or encounter a demand asking the guarantor to extend the guarantee or pay. The exact rule and guarantee wording must be read carefully.
Remember thisA real problem in the underlying contract is not enough; the demand must comply with the guarantee.
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