"Bonds and Guarantees: Classifying a security document as a guarantee or an on-demand bond remains problematic"

January 2013

Nicholas Gould discusses the recent case of Wuhan Guoyu Logistics Group Co Limited & Others v Emporiki Bank of Greece SA where the Court of Appeal reversed the first instance decision of the Commercial Court that a security document was a guarantee rather than an on-demand bond. However, neither the first instance judge nor the Court of Appeal found the case particularly easy and so the guidance given by the Court of Appeal will be helpful in distinguishing on-demand bonds from guarantees in the future.