Exemplary Disputes over Underlying Contract

Description

This Skill Bit shows that contract disputes can freeze a bank guarantee, preventing the bank from honoring it until the issues are resolved. Common examples include quality issues, delivery delays, payment disagreements, misinterpretations of contract terms, and termination conflicts. In such cases, both parties may need legal counsel to resolve the underlying dispute before the bank can release the guarantee funds. Timely intervention and negotiation are crucial for achieving a favorable outcome for all involved.

Duration approx. 3 Min.

Tier: proficiency