Refund Guarantees

Mark Davis is the author of Bareboat Charters, and has over 25 years’ experience as a solicitor in private practice specialising in shipping law.

• Introduction Definitions and characteristics Contractual and statutory requirements Construction Aids to construction of demand instruments and guarantees Presumption against the imposition of primary liability Authority of signatory Local approvals The BIMCO NEWBUILDCON – Standard Newbuilding Contract – Part II, Annex A (iii) Refund Guarantee Introduction Clause 1 Definitions Clause 2 Guarantor’s Obligation Clause 3 Indulgence, delay, amendment or variation Clause 4 Duration Clause 5 Dispute Clause 6 No counterclaim or set-off Clause 7 Currency Clause 8 Assignment Clause 9 Governing law and jurisdiction Clause 10 Notices Clause 11 Immunity Clause 12 - 14 Approvals and authorisations Guarantees issued on behalf of the buyer Guarantees issued on behalf of the builder Parent guarantees and letters of comfort Assignment and novation Material variation of the underlying contract Anti-discharge provisions Discharge of the surety Vitiating elements in the contract of suretyship Making demand Restraining payment Enforceability of an English Court judgment / London arbitration award