Article

Int’l Demand guarantees versus sureties on first demand

In a recent decision,(1) the Supreme Court clarified its position on sureties payable on first demand and confirmed its view on the interpretation of contractual undertakings (eg, guarantees or sureties)(2) by which one party assumes a personal liability for a third-party debt. Considering the significant different legal consequences for a beneficiary’s position following a qualification as either an abstract guarantee or an accessory surety, the guidelines provided by the Supreme Court on how it interprets wording included in such contractual undertakings are of the utmost importance for Austrian legal practice.

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http://www.internationallawoffice.com/Newsletters/Banking/Austria/Graf-Pitkowitz-Rechtsanwlte-GmbH/Demand-guarantees-versus-sureties-on-first-demand