Demand guarantee (Ro.: scrisoare de garanție, De.: ~e  Gewährleistungsgarantie, Fr.: lettre de garantie, n.f., Gr.: εγγύηση πληρωτέα σε πρώτη ζήτηση, Cz.: ručení) (See also: penalty clause, retention guarantee, standby letter of credit, suretyship) = an autonomous guarantee signed by the issuer, upon the instructions of the principal, to pay the beneficiary, on its first demand, where the primary obligor (the principal) has failed to perform the contract.


Useful links

Legislation – The Romanian Civil Code, Romania [Romanian] - Uniform ICC Rules for Demand Guarantees (URDG 758) [English] – The French Civil Code, France [French] - International Standby Practices (ISP98) [English]

Organisations and associations - Task force on Guarantees, The International Chamber of Commerce - A Brief Overview Comparison UCP600, ISP8 & URDG 758, Citibank

Online Publications - Hughes, Martin, 2005, UK: Standby Letters of Credit and Demand Guarantees, - Gimenez-Corte, Cristián, 2012, Lex Mercatoria, International Arbitration and Independent Guarantees: Transnational Law and How Nation States Lost the Monopoly of Legitimate Enforcement, Transnational Legal Theory, Volume 3, Number 4, 2012, pp. 345-370(26), Social Science Research Network


Bertrams, Roeland I. V. F., 2004, Bank Guarantees in International Trade, the Netherlands, Kluwer Law International

Byrne, James E., 2014, Standby & Demand Guarantee Practice: Understanding UCP600, ISP98 & URDG 758, USA, Institute of International Banking Law & Practice, Inc.

Pierce, Anthony, 1993, Demand guarantees in international trade, UK, Sweet & Maxwell


By Radu Șomlea