<p><img data-src="https://biz-file.com/c/2206/659572-208x117.jpg?2" alt="Image source: Dmitriy Shironosov –" width="208" height="117" align="left" / loading="lazy" class="lazyload"><br><span >Image source: Dmitriy Shironosov – [[www.123rf.com 123RF.com]]</span>It has long been held, per <i>Loomcraft Fabrics CC v Nedbank Ltd and another [1996]</i> (the Loomcraft case), that a demand guarantee is akin to an irrevocable letter of credit, which establishes a contractual obligation on the part of the bank to pay the beneficiary on the occurrence of a specified event, and is wholly independent of the underlying contract in terms of which the guarantee is supplied by way of security. It is also established law, that the only basis upon which a party may seek to interdict the payment of sums claimed on an on-demand guarantee, is that of fraud on the part of the beneficiary.<br> <a href="https://www.bizcommunity.com//Article/196/547/228898.html">Read more...</a> | <a href="https://www.bizcommunity.com//SendToFriend.aspx?l=196&c=547&ct=1&ci=228898">Send to a friend</a></p><div style="clear:left"></div>
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