The art of reinforcing and invalidating a bank guarantee

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A bank guarantee is an element of security under the law of obligations in the form of a guarantee provided by a bank and intended to ensure that a party (client for the provision of the bank guarantee) fulfils its obligations towards its co-contracting party (beneficiary). The bank guarantee is not named explicitly in the law as a legal concept; the content of the bank guarantee is determined by contract, case law and custom.