Radhika Soni, School of Law, NMIMS, Navi Mumbai
Bank guarantees play an important part in business expansion, assisting businessmen to develop. As financial companies use guarantee clauses to preserve their loans, companies and business owners are starting to rely on bank guarantees. Currently, major commercial or investment agreements are supported by bank guarantees to give payment assurance and have been regarded as “life-blood” in this scenario. Here, the researcher has made an effort to explain the concept of bank guarantee and its various types. The paper also describes how to invoke a bank guarantee and when it couldn’t be invoked by analyzing exceptions of Bank guarantee. Further, Covid-19 has given rise to various legal disputes so the research also focuses on the “Force majeure” concept which is introduced to deal with cases arising from Covid-19 situations.
Keywords: Bank Guarantee, Contract, Encashment, Invocation