The general principle is that subject only to the “fraud exception” claims for payment under Advance Payment Guarantees (“APGs”) and Performance Guarantees or Bonds (“PGs”) should be met on demand. The Courts have not been kind to those resisting payment, even when the claims are doubtful, potentially dishonest and/or clearly overstated.
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Karen Gough
Posts by Karen Gough
Making Demands on Advance Payment Guarantees and Performance Bonds – the “fraud exception”
Making Demands on Advance Payment Guarantees and Performance Bonds: The Test to Secure Summary Judgment on a Claim before the English Court
We are in the midst of a world-wide recession. So, in times when contractors’ liquidity and therefore their very survival is more at risk than usual, and employers are more than usually jittery about the ability of contractors to complete works, a recent decision on a claim to enforce an advance payment guarantee and a [...] read more »
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