Bank guarantees – abuse of rights when demanding payment?

Banking & Finance

Mag. Stephan Schmalzl und Mag. Norbert Amlacher, ILO Newsletter vom 5. Dezember 2014

The Supreme Court recently dealt with a case in which a claim secured by a bank guarantee became due after the guarantee period expired. It is crucial to have in-depth knowledge of the advantages and strategic use of abstract claims arising from bank guarantees, as well as an understanding of the pitfalls triggered by poorly drafted bank guarantees and underlying commercial agreements.