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Supporting Statement

Posted: Wed Jun 08, 2016 6:33 pm
by Kiara
Dear all,

Hope you can help..

I have a guarantee with the following wording:

"upon receipt by us of your first demand in writing and your written statement that:

a) the principal is in breach of his obligation(s) under the Contract;
b) the Employer has served notice of the breach on the Principal requiring it to remedy the breach within a reasonable period which period shall be prescribed in the said notice by the Employer, and the Principal has not remedied the breach within the time prescribed by the notice;
c) the Employer has terminated the contract pursuant to Clause 15 of the Contract.

Such demand and statement accompanied by a copy of the notice referred to in paragraph (B) hereof shall be accepted as conclusive evidence...

My question is, is this acceptable under URDG 758 ??

Under article 5 a guarantee should only make reference to the contract for identification purposes with no link.. in my view a guarantee shouldn't require to prove the breach or justify its right to claim payment ..

Thanking you in advance.



Posted: Mon Jun 13, 2016 11:35 pm
by picant
Hi Pal,

art 19 URDG states: documents required by the guarantee, those could be in the form of a statement or supporting commercial documents referring to the underlined contract or transaction. Where in some Countries a false declaration may have consequences, in some other Countries copies of invoices or transport documents may absolve the prescription for AML, KYC and CT:
Other comments appreciated