Definition

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

http://legislatie.just.ro/Public/DetaliiDocument/109884#id_artA10773_ttl – The Romanian Civil Code, Romania [Romanian]

http://www.scribd.com/doc/82388395/URDG-2010-Final-Adopted-Text-PDF#scribd - Uniform ICC Rules for Demand Guarantees (URDG 758) [English]

http://www.legifrance.gouv.fr/affichCodeArticle.do?idArticle=LEGIARTI000006448430&cidTexte=LEGITEXT000006070721&dateTexte=20150823 – The French Civil Code, France [French]

http://www.uncitral.org/pdf/english/texts_endorsed/ISP98_e.pdf - International Standby Practices (ISP98) [English]

Organisations and associations

http://www.iccwbo.org/About-ICC/Policy-Commissions/Banking/Task-forces/Uniform-Rules-for-Demand-Guarantees-(URDG)/ - Task force on Guarantees, The International Chamber of Commerce

http://www.citibank.com/transactionservices/home/sa/b2/eSource_academy/docs/ABriefOverviewComparisonUCP600_ISP8_URDG_758.pdf - A Brief Overview Comparison UCP600, ISP8 & URDG 758, Citibank

Online Publications 

http://www.mondaq.com/x/33370/Commercial+Law/Standby+Letters+of+Credit+and+Demand+Guarantees - Hughes, Martin, 2005, UK: Standby Letters of Credit and Demand Guarantees, mondaq.com

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2295530 - 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

Publications

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