A Study On Bank Guarantee And Judicial Intervention




Radhika Soni, School of Law, NMIMS, Navi Mumbai


ABSTRACT


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

Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878

Website: www.ijllr.com

Accessibility: Open Access

License: Creative Commons 4.0

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​All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

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