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Contact

Contact with chambers should be made through the Practice Management Team. They are happy to discuss client requirements and provide further information on such matters as the expertise and experience of individual members, fees, working practices and languages spoken. We have members able to work in French, German, Italian, Spanish, Dutch, Swedish, Greek and Chinese (Mandarin).

Outside working hours, a member of our team is always available to be contacted on matters of an urgent nature. Contact should be made using the Chambers main number or email.

To contact our Singapore office, please contact our BD Director, Asia, Rachel Foxton. Out of office hours calls will automatically be diverted to our clerking team in London.

London

20 Essex Street
London
WC2R 3AL

enquiries@twentyessex.com
t: +44 20 7842 1200
DX 0009 Lond/Chan Lane

Singapore

28 Maxwell Road
#02-03
Maxwell Chambers Suites
Singapore 069120

singapore@twentyessex.com
t: +65 62257230

Contact

Contact with chambers should be made through the Practice Management Team. They are happy to discuss client requirements and provide further information on such matters as the expertise and experience of individual members, fees, working practices and languages spoken. We have members able to work in French, German, Italian, Spanish, Dutch, Swedish, Greek and Chinese (Mandarin).

Outside working hours, a member of our team is always available to be contacted on matters of an urgent nature. Contact should be made using the Chambers main number or email.

To contact our Singapore office, please contact our BD Director, Asia, Rachel Foxton. Out of office hours calls will automatically be diverted to our clerking team in London.

London

20 Essex Street
London
WC2R 3AL

enquiries@twentyessex.com
t: +44 20 7842 1200
DX 0009 Lond/Chan Lane

Singapore

28 Maxwell Road
#02-03
Maxwell Chambers Suites
Singapore 069120

singapore@twentyessex.com
t: +65 62257230

17/04/2020

When is a guarantee a ‘demand’ guarantee and what presumptions should apply?

In a recently published article, Colleen Hanley looks at Shanghai Shipyard v Reignwood International Investment (Group) Company Ltd [2020] EWHC 803 (Comm) and its implications on ‘demand’ guarantees.

The court decided two preliminary issues of construction of a guarantee (the guarantee) under which Shanghai Shipyard was the builder and Reignwood International the guarantor (Reignwood). The first was whether the guarantee was a ‘demand guarantee’ and not a ‘performance’ or, as the court termed it throughout, a ‘see to it’ guarantee. If it was a ‘demandguarantee then Reignwood’s liability arose automatically simply by reason of the demand itself and regardless of whether or not the buyer had failed to perform in any way under the underlying shipbuilding contract. The court decided it was not a ‘demandguarantee but rather instead a ‘see to it’ guarantee. The second issue was whether Reignwood, under the terms of the guarantee, was entitled to refuse to pay out under the guarantee pending and subject to the outcome of the arbitration commenced between Shanghai Shipyard and the buyer under the underlying contract, only if the arbitration had been commenced when the guarantee demand had already been made. The court decided Reignwood was entitled to refuse payment regardless of when any such arbitration was commenced.

The case confirms the threshold test for an ‘on demand’, as opposed to a ‘performance’ or ‘see to it’ guarantee, remains high.

This article was first published by Lexis®PSL on 8/04/2020.

Read the full article

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Colleen Hanley
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