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An Irrevocable Letter of Guarantee is a crucial financial instrument in Singapore's commercial landscape, providing security and risk mitigation in various business transactions. The document is typically used when a party requires financial assurance from another party's obligations, such as in construction projects, tender submissions, or trade contracts. Under Singapore law, these guarantees are governed by strict banking regulations and common law principles, making them highly reliable security instruments. The guarantee contains specific details about the maximum amount, validity period, and conditions for claims, and once issued, cannot be revoked without the beneficiary's consent.
