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Performance bond

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Court refuses to enforce demand guarantee because of possible fraud

Photo of Patrick Bracher (ZA)
By Patrick Bracher (ZA) on August 1, 2016

The Johannesburg High Court was invited to enforce a demand guarantee in the form of a performance bond because allegations relating to fraud had not been adjudicated on and this would be left to a parallel arbitration process.

That is not the correct approach to these matters. The cause of action arose from a guarantee…

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Norton Rose Fulbright’s financial institutions team provides straightforward legal updates. Our lawyers offer local insights with an international perspective recognised worldwide. This blog focuses on the South African market and is about sharing knowledge with you. Blog posts are not legal advice.

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