Document background
Bank Guarantees and Performance Guarantees are essential financial instruments in commercial transactions under English and Welsh law. They are typically used when significant financial or performance obligations need to be secured, such as in construction projects, international trade, or large-scale commercial contracts. The guarantee provides assurance to the beneficiary that either payment will be made or performance will be completed, backed by the bank's creditworthiness. These guarantees are subject to strict regulatory requirements and must comply with both banking regulations and common law principles.
