A recurring issue during the Covid-19 crisis has been the alleged impossibility of performance of contractual obligations and its consequence on invocation of bank guarantees and negotiation of letters of credit. Does the frustration of the underlying contract entitle a party to seek an injunction against the invocation/encashment of a bank guarantee or a letterContinue reading “Covid-19 and Force Majeure: Part III”
Tag Archives: Bank Guarantee
Is ‘Special Equities’ a Distinct Exception to Invocation of Bank Guarantees?
The law on invocation of bank guarantees is well-settled. The Supreme Court has consistently held that the beneficiary of a bank guarantee is entitled to invoke it (in accordance with its terms) irrespective of any dispute between the beneficiary and the party at whose behest the guarantee is given. For, a bank guarantee is anContinue reading “Is ‘Special Equities’ a Distinct Exception to Invocation of Bank Guarantees?”
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