n Without Prejudice - Construction bonds : the bedevilment of loose language : contract law

Volume 12, Issue 3
  • ISSN : 1681-178X



A 2011 Supreme Court of Appeal (SCA) judgement indicates that courts will find an on-demand bond exists only where it is clear (on a proper interpretation of the document as a whole) that the parties intended the liability of the guarantor to exist separately from the liability of the contractor. The loose use of the words "" or giving the document that title does not necessarily mean that a bond is, in fact, one which can be called upon, in its entirety, literally "."

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