The court was asked whether a payment guarantee is a guarantee, properly so called, or an ‘on demand bond’, as it is called in banking terminology. Christopher Clarke J had held that it is a guarantee properly so called and that it is therefore open to the defendant bank to argue that no payment became due under the contract containing the obligation guaranteed and that the bank is therefore not itself liable under the guarantee.
Longmore, Rimer, Tomlinson LJJ
[2012] EWCA Civ 1629
Bailii
England and Wales
Updated: 20 October 2021; Ref: scu.466795 br>