Whereas previously fraud was the only real challenge to an On Demand Guarantee, in an obiter judgment (non-binding) the SCA has suggested that just like in England and Australia, the terms of the Building Contract in question should be considered.
This means that contractors may succeed with inserting limited terms of contract avoiding liability under On Demand Guarantees in a narrow range of circumstances.
In South Africa, security over financial instruments is typically established through a pledge, cession in security, or a combination of...
Directors often delegate certain functions and tasks to company employees or rely on the advice of experts. However, under South African...
In South Africa, banking and finance transactions often involve suretyships and guarantees. A guarantor's obligation depends on what the...