LawRato

under which law does this come? and the answer?


07-May-2023 (In Banking / Finance Law)
My client sent a letter to it’s customer stating that a bank guarantee in my client’s favour should be extended, failing which the bank guarantee will be invoked on 1.4.17. The customer managed to get an order dated 29.3.17, restraining the invocation/encashment of the bank guarantee by my client. The order states nothing about whether the bank guarantees should be kept alive for the duration of the stay order restraining invocation. Have my client’s rights to extend the bank guarantee beyond 1.4.2017, now been extinguished? (The guarantees themselves are valid till 15.5.17.)
Answers (1)

Answer #1
751 votes
The bank guarantee is between the customer and the bank. A third party may not have the right to have it unilaterally extended. However, it must be seen holistically with all other transaction documents if the guarantee is co-terminus with other agreements. Do share the stay order and the guarantee agreement for clarity.

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.

Report abuse?

Comments by Users

No Comments! Be the first one to comment.

"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."