Demand Guarantees in the Construction Industry
21 Jan 2019
A comparative legal study of their use and abuse from a South African, English and German perspective
Independent guarantees, payable on demand (so-called demand guarantees) are the preferred security instruments in complex construction and infrastructure projects. To the beneficiary, demand guarantees offer immediate access to cash without having to prove breach of contract, (insufficient) performance, damages, or the extent thereof. Due to the independent nature of demand guarantees, there is a risk of abusive or fraudulent calls. This comparative study analyses, in depth, the use of such guarantees in the construction industry, and the legal situation in South African, English, and German law regarding abusive calls on demand guarantees. The book explores typical scenarios in construction, and illustrates measures to prevent or mitigate abusive calls.
Contents include:
- Introductory matters
- The construction context
- Guarantees in general legal perspective
- Guarantees in the construction industry
- The abuse of, and other problems relating to, demand guarantees in the construction industry
- Documentary compliance, identity of the parties, and other defences based on the guarantee and its terms
- Negative stipulations in the underlying contract
- Recommendations and measures to counter abusive calls on demand guarantees in the construction context
Of interest and benefit to:
- Lawyers
- Advocates
- Academics and students who have an interest in advanced studies of construction and construction law
- Financiers
- Construction industry
- Judges
Edition: 1st (published in partnership with Nomos)
Available from Juta: December 2018
Author: Dr. Karl Marxen
ISBN: 978 1 48512 827 4
Format: Print – Hard cover
Extent: 355 Pages
Retail price: R950 (Price includes 15% VAT, excludes courier delivery and is valid until 30 June 2019).
Click here for further details and to purchase this title online.
The following publication may also interest you: Finsen’s The Building Contract: A Commentary on the JBCC Agreements
(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)