Reference to a Underlying Relationship in guarantee claim issue

With the introduction of Uniform Rules for Documentary Guarantee or URDG 758, the rules for Documentary Guarantee seem to be popular again. It can be imagined from the increasing number of questions that have popped up in recent days. Documentary Guarantee Forum is an effort to develop a platform to discuss these questions.
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Gart
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Reference to a Underlying Relationship in guarantee claim issue

Post by Gart »

Dear colleagues,

I'm approaching yourselves for the following matter.

While standard guarantee model form under URDG 758 reads as:
"
The Underlying Relationship: The Applicant‘s obligation in respect of (details of the contract like name, date, No., description of goods are indicated here)

As Guarantor, we hereby irrevocably undertake to pay the Beneficiary any amount not exceeding in total the Guarantee Amount upon presentation of the Beneficiary’s complying demand, in the form of presentation indicated above, supported by such other documents as may be listed above and in any event by the Beneficiary’s statement, whether in the demand itself or in a separate signed document accompanying or identifying the demand, indicating in what respect the Applicant is in breach of its obligations under the Underlying Relationship.
"
my question would be: whether in the demand for payment details of the underlying relationship as described in guarantee text (details of the contract like name, date, No., description of goods are usually indicated here) should be indicated there or there is just enough to quote that the Applicant is in breach of its following obligations under the Underlying Relationship: obligations breached quoted?

p.s. demand for payment also contains guarantee ref. No.
WanDan
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Last Name: Dan
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Details

Post by WanDan »

Dear Gart,

I just came across your post.

IMHO it would be advisable to quote the details as per the guarantee to avoid any problems in connection with article 15 a. By mentioning the LG No. article 14 f should be satisfied.

Cheers,
Dan
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