n Without Prejudice - Construction bonds : the bedevilment of loose language : contract law
|Article Title||Construction bonds : the bedevilment of loose language : contract law|
|© Publisher:||JetBlue Publishers (Pty) Ltd|
|Affiliations||1 Norton Rose South Africa and 2 Norton Rose South Africa|
|Publication Date||Apr 2012|
|Pages||6 - 7|
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 "on demand" 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 "on demand."
Article metrics loading...